2026 FEHB Premiums increase by 12% from previous year. Read how FEHB premium rate increases impact federal employees and retirees. Pick your Federal Employee Health Benefits plan. Learn how to manage the stressing reality of increasing healthcare costs for insurance carriers participating in the federal program.
2026 FEHB Premiums: Increased Rates for Federal Employees, including PSHB Health Insurance Premiums
2026 FEHB premiums are, on average, set for another steep premium increase after health premiums spiked over 13.5 percent in 2025. This article will examine 12.3% spike in cost and the effect on federal employees, how it compares to the Postal Service Health Benefits (PSHB) program, and after looking at health plan options, will highlight the importance of annual open season events. As for FEDVIP (Federal Employee Dental and Vision Insurance Program) plans, dental premiums will go up 3.3% and vision will see a small 0.5% jump on average.
Register for a Free FEHB Open Season webinar to ensure you’re picking the right plan for 2026.
Overview of OPM Health Premium Increase Next Year for Civilian Feds and Postal Workers
Recently, the Office of Personnel Management (OPM) released the 2026 FEHB premiums, revealing a total average increase of 12.3 percent in health insurance premiums.. The increase for the 2026 calendar year means feds can expect to pay more for their health insurance coverage. According to OPM, this increase reflects rising health care costs and other factors impacting the health benefits program. It is important to remember that the increase is an average across all plans, with some premiums rising higher than 12.3% and others less. During the annual Open Season, it is important to review available plan options and consider adjusting their enrollment to manage these rising costs.
2026 FEHB Premiums: Comparison with Postal Service Health Benefits (PSHB)
In addition to the FEHB premium increases, the Postal Service Health Benefits (PSHB) program will also see a rise in costs. The average premium increase for the PSHB is projected to be 11.3%. While slightly lower than the FEHB average, this increase still represents a significant impact on postal employees and retirees.
Read: Top 5 Mistakes to Avoid During Open Season
Types of Plans Available through Federal Employee Health Benefits Program
Health Maintenance Organizations (HMO) | Requires enrollees to select a primary care physician (PCP) within the network. The PCP coordinates the enrollee’s healthcare, providing referrals to specialists when necessary. | Often have lower premiums, but enrollees typically need to stay within the network to receive coverage. |
| High Deductible Health Plans (HDHP) | Effective if you want to maximize their savings and manage their healthcare costs, especially if in good health and paired with an HSA. | Usually feature lower premiums but have higher deductibles. |
| Fee-for-Service (FFS) Plans | FFS options provide more flexibility compared to HMOs, as enrollees can typically see any healthcare provider without a referral. | Generally have higher premiums and may require enrollees to pay a percentage of the cost after meeting a deductible |
Health Savings Accounts and Flexible Spending Accounts
One of the key benefits of choosing a High Deductible Health Plan (HDHP) within the FEHB program is the opportunity to contribute to a Health Savings Account (HSA). An HSA allows federal employees and retirees to save pre-tax money for qualified healthcare expenses. The money in an HSA grows tax-free, and withdrawals for eligible medical costs are also tax-free, providing significant tax benefits. Funds rollover year to year, which is not the case with Flexible Spending Accounts (FSA), but those funds can be used on more qualified medical expenses along with no requirement of an HDHP. You cannot have both types simultaneously.
Coverage Options for FEHB Enrollees and the Postal Service Health Benefits Program
| Self Coverage | Provides health insurance under the FEHB program solely for the federal employee or retiree | Premium for self coverage is generally lower when there’s only one participant |
| Self Plus One | Allows the federal employee or retiree to cover themselves and one eligible family member, such as a spouse or dependent child. | Premiums are higher than self coverage, they typically lower than those for self + family (but not always!) |
| Self and Family Plans | For the federal employee or retiree, their spouse, and any eligible dependent children. | Because this can include several eligible individuals, these plans likely have highest monthly premiums. (However, if you are a FERS annuitant, some of these plans are cheaper than self plus one options when covering just the retiree an d their spouse.) |
*Federal government pays up to 75 percent of the premium for active federal employees. For retirees, the enrollee share of premiums is higher and they are paid post-tax, not pre-tax like when working. With a TCC (temporary continuance of coverage), the government pays no portion.
Feds have the opportunity to review their FEHB and other benefits with a federal retirement expert. Schedule your free consultation here.
Importance of OPM’s Federal Benefits Open Season
The Open Season for FEHB is a crucial period for federal employees and retirees. It’s the annual opportunity to review and make changes to their health insurance coverage. For the 2026 plan year, the FEHB Open Season will run from November 10 through December 8, 2025. During this time, individuals can enroll in a new FEHB plan, change their plan type, or modify their coverage level (self, self plus one, or self and family) and make changes in FEDVIP coverage.
PlanWell FEHB Open Season Webinar
To assist federal employees and retirees in making informed decisions during the FEHB Open Season, PlanWell is hosting a free webinar on November 6th, 2025. This webinar will provide valuable insights into the FEHB program and guidance on selecting the right plan to meet individual needs. It’s a valuable opportunity to learn more about your health benefits program and make well-informed choices about your health insurance coverage, dental and vision insurance program, and prescription benefits. Make sure you are prepared for another double-digit increase in health premiums.
