Federal employees and retirees enrolled in the Federal Employees Health Benefits (FEHB) Program will see another significant increase in healthcare costs in 2027.
According to the Office of Personnel Management (OPM), the enrollee share of FEHB premiums will increase by an average of 10.9% in 2027. While this increase is substantial, it’s lower than the previous two years.
Average increases in the enrollee share:
2025: 13.5%
2026: 12.3%
2027: 10.9%
However, these are program-wide averages, and the actual increase will depend on your specific FEHB plan, enrollment type, and the government’s contribution.
During Open Season, review your plan’s 2027 premium and compare available alternatives.
Why Are FEHB Premiums Increasing in 2027?
According to OPM, rising medical costs, increased healthcare utilization, and higher prescription drug expenses are contributing to the increases.
Premiums aren’t the only thing changing. Deductibles, copays, provider networks, and prescription coverage may also change for 2027.
How Much Will the Government Contribute Toward FEHB in 2027?
The federal government pays a significant portion of FEHB premiums for eligible employees and retirees.
For 2027, the maximum government contribution is:
Self Only: $352.04 biweekly
Self Plus One: $767.53 biweekly
Self and Family: $843.82 biweekly
Your actual contribution depends on the plan you select.
Self Plus One May Cost More Than Self and Family
Surprisingly, some FEHB plans charge higher enrollee premiums for Self Plus One than Self and Family.
If you’re covering yourself and one eligible family member, compare both options during Open Season rather than assuming Self Plus One is automatically cheaper.
When Is the 2026 Federal Benefits Open Season?
The 2026 Federal Benefits Open Season runs from November 9 through December 14, 2026.
During this period, eligible federal employees and retirees can review their coverage and make permitted changes for 2027.
What Should You Review During FEHB Open Season?
When comparing plans, consider:
Premiums, deductibles, and copays
Prescription drug coverage
Provider networks
Out-of-pocket maximums
Changes to plan benefits
FEHB coordination with Medicare, if applicable
Remember, the plan with the lowest premium isn’t necessarily the least expensive overall.
What Do Higher FEHB Premiums Mean for Retirement Planning?
For federal employees approaching retirement, rising healthcare costs should be part of your retirement income projections.
Consider how FEHB premiums and potential future increases fit alongside your FERS pension, TSP withdrawals, Social Security, and Medicare expenses.
Healthcare costs aren’t fixed, and planning for future increases can help create a more realistic retirement budget. For more information on how federal benefits work together, explore our Federal Retirement FAQs.
Bottom Line
FEHB premiums are increasing again in 2027, with enrollees paying 10.9% more on average.
Before Open Season ends on December 14, review your coverage, compare available plans, and consider how healthcare costs fit into your retirement plans.
✅ FedWise Insight
Don’t focus on the 10.9% headline alone.
Your actual increase could be different, and choosing the lowest premium plan isn’t always the best financial decision.
For federal employees approaching retirement, FEHB is just one piece of the puzzle. Understanding how your healthcare coverage works alongside FERS, TSP, Social Security, and Medicare can help you make more informed retirement decisions.
Related: OPM Clarifies FEHB Rules for Married Federal Employees
About the Author
David Setia, AIF®, CMFC® is the founder and financial advisor at FedWise Advisors. With more than 10 years of experience helping federal employees and retirees, David specializes in federal retirement planning, including FERS, the Thrift Savings Plan (TSP), Social Security, retirement income planning, and investment management.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
