Federal Employees Health Benefits Premium Increase in 2027
The Office of Personnel Management (OPM) has announced that premium rates for health plans under the Federal Employees Health Benefits (FEHB) program will increase by an average of 10.9% in 2027, marking the third consecutive year of double-digit rises.
This trend of rising premiums continues a trajectory seen in recent years, with a 12.3% increase in 2026 and a 13.5% hike for 2025 participants. Despite this, OPM's Associate Director for Healthcare and Insurance, Matthew Kiley, pointed out a slowing pace in the rate of increases, noting recent efforts aimed at cost management and affordability. The federal government covers approximately 75% of FEHB premiums, providing a cushion for the roughly two million federal employees and annuitants who rely on these plans.
Expanded Options for Federal Employees
In 2027, FEHB participants can choose from 118 plan options provided by 45 carriers, while Postal Service Health Benefits (PSHB) participants will have 65 plan choices across 17 carriers. For those in the Federal Employees Dental and Vision Insurance Program (FEDVIP), there are 21 dental plans and 10 vision plans to consider. Not all plans are universally available, as some are limited to specific geographic areas or agencies, thereby necessitating careful review by participants.
Key Considerations During Open Season
Open Season, running from November 9 to December 14, is a critical time for federal employees to evaluate and possibly adjust their health plans. OPM advises participants to carefully consider both current plans and available alternatives to better match their health needs and budgetary constraints. A recent request for information by OPM may further influence plan offerings, as the agency seeks participant feedback to optimize available health plan portfolios for both value and cost-effectiveness.
| Year | Average Premium Increase | Participants' Program |
|---|---|---|
| 2027 | 10.9% | FEHB |
| 2026 | 12.3% | FEHB |
| 2025 | 13.5% | FEHB |
The OPM's strategic initiative not only focuses on adjusting premium hikes but also aims to enhance the quality and diversity of plan options. This initiative comes as the agency works to balance cost factors with the provision of comprehensive and accessible health care coverage for federal employees nationwide.