FEHB 2027 Premiums Rise 10.9%: Four Open Season Moves for Federal Employees
FEHB 2027 premiums are going up, and for most federal employees the paycheck is not. According to OPM's 2027 rates, the average enrollee's share of the premium will rise 10.9 percent in January, the third straight year of double-digit increases, while the announced 2027 pay plan calls for a zero percent raise for most civilian employees. Open Season runs November 9 through December 14, 2026, and doing nothing during that window has a cost.
Why Doing Nothing in Open Season Costs You
If you skip Open Season, your premium still changes in January. And if your plan is leaving the program, OPM may choose your next plan for you. A few focused steps now can protect your budget for all of 2027.
1. Find Your Real 2027 Price
Your 2027 premium is listed on the last page of your plan brochure. Then read Section 2, "Changes for 2027," because premiums are not the only thing that moved. Some plans raised deductibles and copays as well; Blue Cross Standard, for example, raised both. A lower premium paired with a higher deductible is not automatically a better deal. Compare what you are likely to pay over the full year, not just per paycheck.
2. If Your Plan Is Ending, Choose Your Own Replacement
About 39,000 enrollees are in plans that are ending. If you are one of them and you do not pick a new plan, OPM will move you into one. For example, MHBP Value members who do not choose will land in MHBP Standard, where the self-only premium is going up 63 percent. Watch for notices about your plan and make the choice yourself.
3. Sign Up for FSAFEDS
Fewer than one in five federal employees use FSAFEDS. A health care flexible spending account lets you set aside up to $3,500 before taxes for out-of-pocket costs like copays, prescriptions, dental care, and glasses. Because the money is pre-tax, it cuts those bills by roughly 30 percent, which can mean about a thousand dollars back over a year.
If you worry about losing unspent money, start small. A modest election, such as $700, can roll over in full if you do not spend it. FSAFEDS does not renew automatically, so you must re-enroll every year. A debit card is coming in 2027.
4. If You Are Healthy, Look at a High-Deductible Plan
If the premium is what hurts, a high-deductible health plan may be worth a look. These plans carry lower premiums, and the plan contributes to a health savings account for you. You can add your own money, up to $4,500 combined for self-only coverage or $9,000 for a family. HSA contributions go in tax-free, come out tax-free for qualified medical costs, and never expire.
A Note for Postal Employees
Postal Service employees and annuitants are in the Postal Service Health Benefits Program, where the average increase is 8.2 percent and MHBP Value continues.
The Bottom Line
Higher premiums and a flat paycheck mean Open Season matters more this year than usual. Check your 2027 price, read the changes section of your brochure, pick your own plan if yours is ending, and consider FSAFEDS or an HSA-eligible plan. OPM's 2027 Open Season materials and rate charts are available at opm.gov.
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Legal Disclaimer: This content is for general informational purposes only and does not constitute legal advice. Federal employment situations are fact-specific and time-sensitive. Please consult a qualified federal employment attorney about your specific situation. You can contact Southworth PC at attorneysforfederalemployees.com.