Federal Health Insurance Premiums Will Rise by 10.9 Percent
The Office of Personnel Management announced new plan options for federal health programs beginning in 2027.
Updated on Sept. 30, 2026 in Insurance
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The Office of Personnel Management has confirmed that federal health insurance premiums will see an average increase of 10.9% for the 2027 plan year. This adjustment follows plan reviews conducted leading up to the release of 2027 options on September 30, 2026.
Why it matters
Rising insurance costs impact the compensation packages of federal employees, particularly as the government limits its premium contribution to a fixed percentage of prior years' weighted averages. These increases represent a continued trend of rising healthcare expenses for the federal workforce.
The 2027 schedule includes 118 FEHB plan options across 45 carriers and 65 PSHB options across 17 carriers. The federal government covers approximately 75% of total participant premiums.
The players
Office of Personnel Management
This independent agency manages the civil service of the United States federal government and oversees health benefit programs.
Donald Trump
As the current President of the United States, he oversees federal administration policies and proposed a 2027 pay freeze for General Schedule employees.
The details
Participants in the Federal Employees Health Benefits and Postal Service Health Benefits programs can review their coverage and select plans during the upcoming Open Season. The government restricts its total contribution to 72% of the weighted average of previous premiums, shifting more of the year-over-year cost increases to employees.
Timeline
The 2027 Open Season runs from November 9 to December 14, 2026.
The Office of Personnel Management published 2027 plan options on September 30, 2026.
Market Dynamics
The 2027 premium increases update the historical cost trajectory for the Federal Employees Health Benefits (FEHB) program. This trend highlights the ongoing pressure on federal compensation as healthcare costs continue to outpace historical averages for government benefit programs.
Federal employees should anticipate higher payroll deductions for health coverage starting in 2027. Participants should review their current plans during the Open Season to mitigate the impact of these premium hikes on their personal take-home pay.
The takeaway
The sustained increase in premiums underscores the importance of evaluating plan options during the designated Open Season. Federal employees should carefully compare plan designs to ensure their selected coverage remains the most cost-effective option for their needs.
Further reading
For more information on benefits, visit the Insurance section.
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