The 2027 FEHB premium increase averages 9.3%, and the enrollee share rises 10.9%, according to the Office of Personnel Management. Open Season runs November 9 through December 14, 2026, which gives advisors a timely, legitimate reason to check in with every federal client. Your job isn't to sell a health plan. It's to help clients understand the cost changes and how their coverage fits the bigger plan.
Premium growth is slowing compared with last year, but it is still steep. For many federal households, the FEHB deduction is one of the largest recurring line items in the budget, both while working and in retirement. Advisors who understand how FEHB pricing works can turn Open Season into one of the most valuable touchpoints of the year.
The 2027 FEHB Premium Increase by the Numbers
OPM published the official 2027 figures in its Open Season Highlights for plan year 2027 and on its premium information page. Here are the program-wide averages:
2027 average changes, FEHB Program
9.3%
Total premium (10.2% for 2026)
10.9%
Enrollee share (12.3% for 2026)
8.6%
Government contribution (9.2% for 2026)
For postal employees and annuitants in the Postal Service Health Benefits (PSHB) Program, the averages are lower: total premiums rise 6.7% (9.0% for 2026), the enrollee share rises 8.2% (11.3% for 2026), and the government contribution rises 6.0% (8.0% for 2026).
Dental and vision premiums are rising much less. OPM reports average FEDVIP premium increases of 1.0% for dental and 1.6% for vision.
These are averages. An individual client's change depends on the plan and the enrollment type, and some will see much more or much less. That's exactly why a plan-specific review is worth doing.
Why the Enrollee Share Rises Faster Than the Premium
Clients are often confused when their paycheck deduction rises faster than the headline increase. The explanation is the government contribution formula.
Under the law, the government pays the lesser of:
- 72% of the program-wide weighted average premium for that enrollment type, or
- 75% of the total premium for the client's specific plan.
The enrollee pays whatever is left. Because the government's share is capped at a fixed dollar amount tied to the program average, any premium growth above that cap lands entirely on the enrollee. For 2027, OPM lists these maximum biweekly government contributions:
| Enrollment type | Maximum biweekly government contribution | Monthly equivalent |
|---|---|---|
| Self Only | $352.04 | $762.75 |
| Self Plus One | $767.53 | $1,662.98 |
| Self and Family | $843.82 | $1,828.28 |
If a client is in a plan priced well above the program average, they pay the entire difference. If they are in a lower-cost plan, the 75% limit may apply instead. Either way, plan choice changes the employee's out-of-pocket premium, not just the coverage.
What's Driving the Increase
OPM points to rising prices and utilization of health care services, higher behavioral health use, and higher prescription drug spending, especially on GLP-1s and specialty drugs.
A few 2027 program changes are worth knowing before you talk with clients:
- GLP-1 coverage with conditions. OPM says plans will continue to cover at least one GLP-1 anti-obesity medication. For 2027, carriers will require documented participation in an evidence-based intensive behavioral therapy (IBT) program. Clients who use or plan to use these medications should read their plan brochure carefully.
- Plan terminations. Several FEHB plans will not be offered in 2027. OPM says enrollees in those plans must pick a new plan during Open Season, or they will be enrolled automatically in the designated default plan, Compass Rose Standard. One PSHB plan is also terminating.
- Family member verification. Under the FEHB Protection Act of 2025 (Section 90101 of Public Law 119-21), anyone adding a family member during Open Season must submit documentation to verify eligibility. Clients planning to add a spouse or child should gather paperwork early.
- FSAFEDS changes. FSAFEDS will add a Visa FSA card for health care and limited expense accounts. And unlike health coverage, FSAFEDS does not roll over. Participants must re-enroll every year.
How Advisors Add Value Without Overstepping
Federal benefits are complex, and health insurance recommendations are regulated. Unless you hold the appropriate license and expertise, don't tell a client which plan to pick. You can still add a lot of value inside your lane:
- Make the Open Season reminder call. Many clients let their coverage roll over without reading the changes. A simple reminder that Open Season runs November 9 through December 14 is a service in itself.
- Frame the total cost. Help clients look at their annual premium plus expected out-of-pocket costs, not just the biweekly deduction. That's a budgeting conversation, and it belongs in your plan.
- Flag the deadlines that matter. If a client's plan is terminating, if they're adding a family member, or if they want an FSA for 2027, they must act during Open Season.
- Point them to official tools. OPM's plan comparison tool and the official plan brochures are the primary sources. Encourage clients to verify their doctors, prescriptions and costs there, or with the carrier.
- Connect FEHB to retirement. According to OPM's FEHB eligibility rules, carrying FEHB into retirement requires retiring on an immediate annuity and being continuously enrolled for the five years of service immediately before the annuity starts, or for all service since the first opportunity to enroll if that is less than five years. Make that rule part of every pre-retirement review, well before the client picks a date.
Effective dates are also worth noting in your client notes. Open Season changes generally take effect January 10, 2027 for non-postal employees and January 1, 2027 for annuitants and PSHB enrollees.
A Simple Open Season Checklist to Share
A short checklist gives clients something practical to act on, and it keeps your role clear. You aren't choosing a plan for them. You're making sure they don't miss anything. Consider sharing questions like these:
- Is my current plan still offered in 2027, and if not, which plan do I want instead of the default?
- What will my biweekly or monthly premium be in 2027, and how does that compare with 2026?
- Are my doctors, hospitals and prescriptions still covered under the 2027 brochure?
- Am I adding a family member, and do I have the documents needed to verify eligibility?
- Do I want a flexible spending account for 2027? If so, have I re-enrolled?
- If I plan to retire in the next few years, will I meet the five-year enrollment requirement?
Clients who work through these questions before December 14 are far less likely to be surprised in January. And the conversation gives you a natural opening to review the rest of their benefits.
Turn Open Season Into a Practice-Building Habit
Open Season comes every year, and every federal client is affected by it. That makes it one of the most reliable outreach moments in a federal practice. Advisors who send a clear, accurate Open Season summary each November stay top of mind and give clients a reason to forward the message to coworkers.
If you are newer to the federal market, the opportunity for advisors is large, and FEHB is often where trust starts. The same is true of life insurance. Our post on FEGLI vs. private term shows how one well-explained benefit can open a lasting client relationship.
To learn FEHB in depth, including how it coordinates with Medicare and what happens at retirement, explore the FedEd Academy™ class schedule. FedEd Academy is an independent education provider and isn't affiliated with OPM or any government agency.
The 2027 FEHB premium increase is a reason to call every federal client this month. Bring the official numbers, explain the contribution formula, flag the deadlines, and let the client make an informed choice. That's how Open Season builds a practice.
Frequently asked questions
How much are FEHB premiums going up for 2027?
OPM reports that the average total FEHB premium will rise 9.3% for 2027, and the average enrollee share of premiums will rise 10.9%. The average government contribution will rise 8.6%.
What about Postal Service Health Benefits premiums?
For the PSHB Program, OPM reports an average total premium increase of 6.7% for 2027 and an average enrollee share increase of 8.2%.
When is the 2026 Federal Benefits Open Season?
Open Season runs from November 9 through December 14, 2026. Changes generally take effect January 10, 2027 for non-postal employees and January 1, 2027 for annuitants and PSHB enrollees.
Do federal employees have to re-enroll in FEHB every year?
No. FEHB, PSHB, dental and vision enrollments carry over automatically if the enrollee makes no change. FSAFEDS is different: participants must re-enroll each year to keep a flexible spending account.
How does the government contribution to FEHB work?
By law, the government pays the lesser of 72% of the program-wide weighted average premium or 75% of the premium for the specific plan. The enrollee pays the rest.
Can a financial advisor recommend a specific FEHB plan?
Health insurance plan recommendations may require specific licensing and expertise. Many financial advisors instead help clients understand costs, timing and how their health coverage fits the broader retirement plan, and point clients to OPM's official comparison tools and plan brochures.
