The 2027 FEHB premium increases are now official. Federal employees and retirees enrolled in the Federal Employees Health Benefits Program will pay an average of 10.9% more toward their premiums next year. That’s the third consecutive year of double-digit increases, although the pace is slowing.
OPM released the 2027 rates on September 30, ahead of this fall’s Open Season.
2027 FEHB Premium Increases and PSHB Premium Increases Numbers
For FEHB, the average enrollee share will rise 10.9%, down from 12.3% in 2026 and 13.5% in 2025. Overall premiums, including both employee and government contributions, will increase 9.3%, compared with 10.2% in 2026.
The government’s average FEHB contribution will rise 8.6%. Because the enrollee share is increasing faster, employees and retirees will absorb a larger portion of the average increase.
The Postal Service Health Benefits (PSHB) Program will see a smaller increase:
| Premium measure | 2027 Increase |
| FEHB enrollee share | 10.9% |
| FEHB overall premium | 9.3% |
| FEHB government contribution | 8.6% |
| PSHB enrollee share | 8.2% |
| PSHB overall premium | 6.7% |
| PSHB government contribution | 6.0% |
Dental and vision premiums are increasing much less. The average dental premium will rise 1%, while vision premiums will increase 1.6%.
These are program-wide averages. Your actual cost depends on the plan and enrollment option you select.
What’s Driving the Increases?
OPM identified several factors behind the higher rates. Medical prices and use of inpatient, physician, outpatient, and surgical services are increasing. Behavioral and mental health care utilization is also growing.
Prescription drug spending is another major factor. OPM specifically cited GLP-1 medications, specialty drugs, and other high-cost therapies. These pressures affect the cost of providing coverage across the programs, although the impact varies by plan.
Fewer Plan Options in 2027
FEHB will offer 118 plan options from 45 carriers in 2027, down from 132 options and 47 carriers this year. PSHB will have 65 options from 17 carriers, compared with 75 options in 2026.
OPM is separately reviewing whether FEHB and PSHB should offer more, fewer, or different plan options. However, the reduced 2027 lineup should not automatically be attributed to that broader review. Some plan changes reflect individual carriers entering, leaving, or changing their offerings.
What This Means for Open Season
The 2026 Federal Benefits Open Season runs November 9 through December 14, 2026. Coverage generally continues into 2027 if you make no changes.
A pay freeze planned for most civilian federal employees adds another concern. Federal employee unions have criticized the combination of flat pay and rising health premiums, describing it as a squeeze on workers’ take-home income. The proposed pay policy and the finalized premium rates are separate issues, however.
The 2027 FEHB premium increases make comparing plans especially important. Look beyond the average percentage and review the actual premium, provider network, prescription coverage, and out-of-pocket costs for your household.
