Federal health insurance enrollees will pay 10.9% more, on average, toward premiums in 2027

Key Points:

• Federal Employees Health Benefits (FEHB) premiums will increase by an average of 10.9% in 2027, marking the third consecutive year of double-digit premium hikes, with Postal Service Health Benefits (PSHB) premiums rising by 8.2%.
• The government covers about 75% of premiums, resulting in net increases of 9.3% for FEHB and 6.7% for PSHB after accounting for its share; premium growth is driven by rising costs in medical services and prescription drugs.
• The Federal Employees Dental and Vision Insurance Program (FEDVIP) will see smaller premium increases of 1% for dental and 1.6% for vision plans in 2027.
• The Office of Personnel Management (OPM) encourages federal employees to review and compare plan options during Open Season (Nov. 9 to Dec. 14) amid concerns about affordability, especially with a proposed federal pay freeze in 2027.
• OPM is also exploring future health plan adjustments and data collection efforts to reduce fraud and optimize plan offerings, though its health data collection plans have raised privacy and security concerns among lawmakers and stakeholders.