Federal employees and retirees will face another sharp rise in health insurance costs for the 2026 plan year. The Office of Personnel Management (OPM) announced that the average enrollee share of FEHB premiums will climb by 12.3%, adding roughly $26.40 per pay period for most participants. This follows a 13.5% increase in 2025, underscoring a continuing upward trend in healthcare expenses.
The total average premium, which includes both the government’s and employees’ contributions, is projected to rise 10.2% across FEHB plans. Postal employees will see a slightly smaller increase, with their share going up 11.3% and total premiums rising 9% overall.
According to OPM, the higher premiums stem from several factors, including increased medical service usage, rising prescription drug costs, and expanded mental health coverage. These cost pressures come as the proposed pay raise for most federal workers, excluding law enforcement, is just 1%, heightening concern among federal employee organizations about the growing gap between compensation and healthcare costs.
Premiums under the Federal Employees Dental and Vision Insurance Program (FEDVIP) are also set to rise. Dental plan premiums will increase by an average of 3.3%, while vision plans will see a modest 0.5% uptick.
The annual Open Season runs from November 10 through December 8, giving federal employees and retirees the opportunity to compare plans and make changes. Despite this, OPM data shows fewer than 5% of enrollees switch plans each year, potentially leaving many paying more than necessary. Experts caution against choosing coverage based solely on premium price, as lower-cost plans can lead to higher out-of-pocket expenses later.
Even if the government shutdown continues, Open Season is expected to proceed as planned. However, reduced staffing at OPM following recent workforce cuts may affect how efficiently the process is managed.
