Federal Employees Health Benefits Premiums to Rise Again in 2027

Health insurance premiums for participants in the Federal Employees Health Benefits (FEHB) program will increase by an average of 10.9% in 2027, marking the third year of double-digit hikes.

The Office of Personnel Management (OPM) has reported this notable premium surge, following 12.3% in 2026 and 13.5% in 2025. Previous years also saw significant increases, with premiums rising by 7.7% in 2024 and 8.7% in 2023. This consistent upward trend signals potential concerns for both federal employees and the insurance industry at large. The OPM has announced plans to implement comprehensive strategies aimed at maintaining the program's affordability while still offering diverse health options to its enrollees.

OPM's Approach to Mitigating Premium Hikes

Matthew Kiley, OPM’s associate director for healthcare and insurance, highlighted ongoing efforts to manage premium rates. Strategies will center on expanding program initiatives designed to offer satisfying health plan options without financially overburdening the participants. Notably, about 75% of FEHB participants’ premiums are subsidized by the government, which may ease the impact of these increases. However, federal employees and retirees must keep abreast of their coverage details, particularly ahead of the upcoming Open Season.

Open Season: A Critical Period for Coverage Review

Open Season, running from November 9 to December 14, represents an essential window for federal employees to reassess their insurance plans. Participants are advised to analyze their current policies carefully and consider alternate options that may better align with their needs. Kiley urged, “Open Season is the time to look beyond your current plan and make sure your coverage still works for you and your family. We encourage employees and annuitants to compare their options, review their costs, and make any changes before the December 14 deadline.”