Next year, most federal employees and retirees are facing a significant increase in their health coverage costs, with the average enrollee share of premiums rising by 12.3%. The Office of Personnel Management (OPM) has attributed this premium hike to an aging federal workforce leading to higher chronic conditions and increased use of prescription medications, particularly GLP-1 drugs prescribed for weight loss.
As the Federal Employees Health Benefits (FEHB) Open Season approaches, individuals should prepare for how these changes will affect their healthcare choices. The upcoming enrollment period offers an opportunity to review premium changes across popular plans, which will vary, with some options seeing increases below the national average while others are sharply rising.
Historically, this will be the second consecutive year of double-digit premium increases for federal employees, following an average increase of just 3.8% four years ago. The trend indicates that substantial premium hikes may continue in the future.
Of the 129 FEHB plans available in 2025 and 2026, only 23 will see a decrease in self-only premiums, while 57 plans will feature increases under the 12.3% average. Conversely, 49 plans will exceed this average increase. Notably, Kaiser Permanente High (F81) in Georgia will see the smallest enrollee premium decrease at 18%, benefitting enrollees by approximately $727. In stark contrast, the Panama Canal Benefit Plan (431), which caters to employees in the Panama Canal Zone, faces a staggering 139% increase in premiums, resulting in an additional cost of $4,622.
For those enrolled in Blue Cross Blue Shield (BCBS) plans, which represent about two-thirds of federal employees, it is essential to assess current coverage. Standard plans show a moderate increase, while Basic and FEP Blue Focus plans have higher hikes. Evaluating alternative options may yield savings, especially for families switch from Standard plans, potentially saving over $7,000 depending on the selected plan.
Moreover, for married couples or two-person families, choosing between self-plus-one and self-and-family enrollment can significantly impact costs. In some cases, enrolling as self-and-family can result in substantial annual savings. Additionally, understanding the government’s contribution towards premiums is vital, as the coverage may differ based on plan costs.
While FEDVIP premiums for dental and vision coverage will increase at a much lower rate—3.3% for dental and 0.5% for vision—this in itself could be an avenue for federal employees to mitigate overall healthcare expenses.
In light of these new developments, federal employees and retirees are encouraged to meticulously evaluate their healthcare options during the Open Season from November 10 to December 8. By analyzing premium changes and exploring plans that offer the highest government contributions, employees may find an affordable solution that meets their healthcare needs.
Kevin Moss, a senior editor with Consumers’ Checkbook, will provide insights in the 2026 Guide to Health Plans for Federal Employees, available on the first day of Open Season. This guide is expected to be a valuable resource for federal employees looking to make informed decisions about their healthcare options.