Open Season began Monday, November 10, 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 it means having to cover more expenses out of pocket.
For the second year running, federal employees and retirees are facing significant hikes in their health insurance premiums. 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 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%.
Even with rising premiums, the Federal Employees Health Benefits (FEHB) Program remains one of the most valuable benefits available to federal workers. Unlike most private-sector plans, FEHB coverage can be carried into retirement, allowing you to maintain the same level of protection for you and your family. Even better, the government continues to pay its share of your premium in retirement, helping keep comprehensive health coverage affordable for life.
