FEHB Premiums Rise 10.9% for 2027 as Pay Freeze Looms: 3 Moves Before Open Season Ends
FEHB premiums for 2027 are rising an average of 10.9 percent, and for many federal employees that increase will arrive in January alongside a proposed pay freeze. Postal Service Health Benefits (PSHB) enrollees face an average increase of 8.2 percent. Before Open Season begins, here is what the numbers show and the three steps worth taking now.
A Third Straight Double-Digit Increase
This is the third double-digit FEHB increase in a row: 13.5 percent in 2025, 12.3 percent in 2026, and now 10.9 percent for 2027. OPM's announcement this week was headlined "Premium Growth Slows for Second Consecutive Year." That is accurate as far as it goes, but a smaller increase is still an increase, and it compounds on the two before it.
There is a second trend the headline did not mention. The government's share of premiums is rising 8.6 percent, while the enrollee share is rising 10.9 percent. For the second year in a row, the portion federal employees pay is growing faster than the portion the government pays.
What Three Years of Increases Add Up To
Stack the last three years together, and an enrollee whose plan tracked the average will pay about 41 percent more in 2027 than in 2024. Over roughly the same period, annual pay raises were about 2 percent and then 1 percent, and the White House has proposed no raise at all for 2027. Premiums up about 41 percent; pay up about 3 percent.
If your January paycheck feels smaller, you are not imagining it.
Three Moves to Make Before December 14
1. Use Open Season — Don't Let Your Plan Simply Roll Over
Open Season runs November 9 through December 14. If you do nothing, your current plan rolls over at its 2027 rate. Compare your options, especially if you have not switched plans in years.
Some plans are ending. FEHB goes from 132 plan options this year to 118 in 2027. If your plan is ending and you do not choose a new one, OPM will choose for you. The following plans end in 2027, and enrollees who do not pick a new plan will be placed in Compass Rose Standard:
- Independent Health Standard and HDHP
- Blue Care Network of Michigan Southeast High
- UHC Choice Primary West High
- UHC Choice Plus Primary West High
- Health Net of California Northern High
- Health Net of California Southern Standard, Basic, and High
On the PSHB side, UnitedHealthcare Choice Plus Primary Postal East is ending, and its default plan is FEP Blue Focus.
2. Remember the Pay Freeze Is Not Final
The proposed 2027 pay freeze is a proposal, not the final word. Congress can still pass a raise. If this matters to you, let your members of Congress hear from you.
3. Weigh In on OPM's Proposal to Limit Plan Offerings
OPM is asking for public comment on whether plans that charge more than a set limit should be removed from the program. Nothing has been decided. Comments close November 16. To find the notice, search "Optimizing FEHB Plan Offerings" at federalregister.gov.
There are real tradeoffs here. A cap could hold down costs, but it could also eliminate a plan that you or your family depend on. OPM is asking for input now, before any decision is made.
The Practical Takeaway
Put Open Season on your calendar now, look at what your plan will cost in 2027, and confirm whether your plan is ending. If you know a colleague who has not changed plans in a decade, share this with them.
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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.