Federal employees and retirees are facing significant hikes in their health insurance premiums for the 2026 plan year. The Office of Personnel Management (OPM) has announced that the average enrollee share of FEHB premiums will rise by 12.3%, translating to an additional $26.40 per pay period for most participants. This follows a 13.5% increase in 2025, marking a continued trend of escalating healthcare costs.
The total average premium increase, which includes both the government’s and employees’ shares, is projected at 10.2% for FEHB enrollees. Postal workers will see a slightly smaller increase in their share at 11.3%, with the total premium increase at 9%.
The rising FEHB premiums are attributed to several factors, including increased healthcare utilization, higher prescription drug costs, and expanded coverage for mental health services. These ongoing increases have raised concerns among federal employee groups, considering the proposed pay raise for non-law enforcement personnel is only 1%.
In addition to the FEHB increases, premiums under the Federal Employees Dental and Vision Insurance Program (FEDVIP) are also set to rise. Dental premiums will increase by an average of 3.3%, while vision premiums will see a modest rise of 0.5%.
Open Season begins on November 10th and runs through December 8th. Federal employees and retirees are encouraged to use this time to shop plans and compare coverage. According to OPM, fewer than 5% of employees change their coverage during Open Season. This could leave enrollees paying more for healthcare than anticipated. Remember that judging a plan on the premium price alone could end up costing more in the long run, especially if reduced coverage means paying more expenses out of pocket.
In the event the government shutdown continues, Open Season is expected to proceed as scheduled; however, there are concerns about the impact of reduced staffing at OPM due to recent workforce reductions. For more information regarding plan changes, click here.