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FEHB Premium Increase 2026: What Federal Employees Need to Know
How Much Are FEHB Premiums Increasing in 2026?
According to the U.S. Office of Personnel Management, the average FEHB premium increase for 2026 is 10.2% overall. The average enrollee share is increasing by 12.3%, while the average government contribution is increasing by 9.2%. For Postal Service Health Benefits participants, the average enrollee share is increasing by 11.3%.
Many federal employees and retirees will pay more for health coverage in 2026, but the exact increase depends on the plan, enrollment type, location, provider network, prescription drug use, and coverage tier.
For federal employees nearing retirement, the 2026 FEHB premium increase should not be treated as only an annual benefits issue. It can affect your long-term retirement income, Medicare decisions, TSP withdrawal strategy, survivor benefit planning, and tax exposure. Federal Pension Advisors, a retirement planning firm specializing in federal employee benefits, helps federal employees review FEHB costs as part of a complete federal retirement planning strategy.
2026 FEHB Premium Increase at a Glance
OPM also states that the 2026 FEHB enrollee-share increase is lower than the 2025 increase, when the average enrollee share rose by 13.5%. That distinction matters because 2026 is still a major increase, but it should not be described as larger than 2025.
What Is FEHB?
The Federal Employees Health Benefits Program, administered by the U.S. Office of Personnel Management, provides health insurance coverage for eligible federal employees, retirees, family members, and certain other groups.
OPM says FEHB, together with the Postal Service Health Benefits Program, covers about 8.2 million people, making it the largest employer-sponsored health benefits program in the United States.
For many federal employees, FEHB is one of the most valuable benefits available. It can continue into retirement if eligibility rules are met, which makes plan selection especially important for employees preparing to retire under FERS or CSRS.
Why Are FEHB Premiums Increasing in 2026?
OPM identifies several major cost pressures behind the 2026 FEHB premium increase, including higher provider and supplier costs, increased prescription drug spending, and greater behavioral health utilization. OPM specifically notes continued cost pressure from GLP-1 medications and specialty drugs.
In practical terms, FEHB premiums are rising because healthcare costs are increasing across several major cost categories:
The key point: the average increase is useful, but your personal cost depends on your specific plan and healthcare needs.
Why the 2026 FEHB Increase Matters for Federal Employees
The 2026 FEHB premium increase matters because the enrollee share is rising faster than the government contribution. OPM reports a 12.3% average increase for the enrollee share and a 9.2% average increase for the government contribution.
For active federal employees, higher FEHB premiums can reduce take-home pay. For retirees, they can reduce monthly annuity income.
You can use the federal employee paycheck calculator to estimate how higher deductions may affect your paycheck.
If you are close to retirement, this increase should be reviewed alongside your FERS pension estimate, TSP withdrawals, Social Security claiming strategy, and Medicare timeline.
Who Is Affected by the 2026 FEHB Premium Increase?
The 2026 FEHB premium increase affects most participants, but the financial impact varies by enrollee type.
Postal Service employees and retirees are now covered under the Postal Service Health Benefits Program rather than traditional FEHB. OPM reports a 2026 PSHB average enrollee-share increase of 11.3%.
FEHB vs PSHB 2026: What Changed?
The Postal Service Health Benefits Program is separate from FEHB and applies to eligible Postal Service employees, Postal Service annuitants, and their eligible family members.
For 2026, both FEHB and PSHB participants have access to plan types such as Fee-for-Service plans, Health Maintenance Organizations, Consumer-Driven Health Plans, and High-Deductible Health Plans.
FEHB and PSHB rates, plan options, and Medicare coordination rules may differ, so Postal employees and retirees should review PSHB-specific documents carefully.
How to Compare FEHB Plans in 2026
OPM’s 2026 plan comparison tool can help federal employees and retirees compare available plans, premiums, deductibles, out-of-pocket costs, and plan features. However, OPM states that the comparison tool is not the official statement of benefits. The official plan brochure should be reviewed before making a final enrollment decision.
Before keeping or changing your FEHB plan, review these items:
- Compare your current plan against at least two lower-cost alternatives.
- Check whether your doctors, hospitals, and specialists remain in-network.
- Review prescription drug formularies, especially for brand-name, specialty, or GLP-1 medications.
- Compare deductibles, copays, coinsurance, and out-of-pocket maximums.
- Review whether an HDHP or CDHP could reduce your total annual cost.
- If you are retired or near age 65, compare how the plan coordinates with Medicare.
- Read the official FEHB brochure before enrolling or switching plans.
OPM also provides plan brochures and plan information by state, including links to provider directories and plan changes.
Should You Keep Your Current FEHB Plan?
Keeping your current FEHB plan may make sense if your doctors, prescriptions, and expected healthcare needs still align with the coverage. But staying in the same plan without comparing alternatives can be expensive.
For married federal employees, FEHB continuation for a surviving spouse can depend on retirement and survivor benefit decisions. Review FERS survivor benefits before finalizing your retirement paperwork.
FEHB and Medicare: Why Retirees Need a Separate Review
Federal retirees who are eligible for Medicare should review FEHB and Medicare together. Some FEHB plans reduce or waive certain out-of-pocket costs when Medicare is primary, while others may offer different cost-sharing structures.
The right choice depends on your health needs, provider access, prescription drug use, income, and travel needs.
This is especially important because Medicare Part B premiums and IRMAA surcharges can change the true cost of coverage. If your income is near an IRMAA threshold, review the 2026 IRMAA brackets before making Medicare, TSP withdrawal, or Roth conversion decisions.
For additional Medicare cost planning, see our guide on how much Medicare Part B may cost in 2026.
FEHB and Retirement Planning
The 2026 FEHB premium increase matters most for federal employees within five to ten years of retirement. Once you retire, FEHB premiums are generally deducted from your federal annuity, which means healthcare costs become part of your long-term retirement income plan.
Higher FEHB premiums can affect:
- Monthly annuity cash flow
- TSP withdrawal timing
- Social Security claiming decisions
- Medicare Part B enrollment decisions
- IRMAA exposure
- Survivor benefit planning
- Long-term tax planning
Federal employees should not review FEHB in isolation. It should be part of a broader plan that includes pension income, TSP strategy, Social Security, Medicare, taxes, and survivor protection.
Common FEHB Mistakes to Avoid in 2026
OPM notes that the comparison tool is not the official statement of benefits. Enrollees should review the individual FEHB brochure before making final coverage decisions.
What Federal Employees Should Do Now
If you already made your 2026 FEHB election, use this article to check whether your plan still fits your broader retirement plan. If you are preparing for a future Open Season, use this process:
- Review your current FEHB premium and plan brochure.
- Add up your past 12 months of medical and prescription costs.
- Compare your current plan with at least three alternatives.
- Check doctor, hospital, specialist, and pharmacy access.
- Review drug formularies and expected out-of-pocket costs.
- If you are near retirement, compare FEHB with Medicare Part B.
- Review how FEHB fits with your FERS or CSRS annuity.
- Confirm whether survivor benefit elections protect your spouse’s future coverage.
For employees planning to retire soon, use the federal retirement planning roadmap to review how FEHB fits into your complete retirement timeline.
2026 FEHB Premium Increase Conclusion
The 2026 FEHB premium increase is meaningful, but the corrected numbers matter. OPM reports a 10.2% overall average FEHB premium increase, a 12.3% average enrollee-share increase, and a 9.2% average government contribution increase. For PSHB, the average enrollee-share increase is 11.3%.
Do not keep your current plan without comparing alternatives. Review your premiums, providers, prescriptions, out-of-pocket costs, Medicare coordination, and retirement income impact.
If you would like a personalized FEHB review that accounts for your FERS or CSRS annuity, TSP withdrawals, Social Security, Medicare, and survivor benefit planning, schedule a complimentary consultation with Federal Pension Advisors.
Sources cited in this article: U.S. Office of Personnel Management 2026 Federal Benefits Open Season Highlights; OPM 2026 FEHB Plan Comparison Tool; OPM Open Season resources.
Disclaimer: This article is for educational purposes only and does not constitute tax, legal, insurance, or investment advice. FEHB, PSHB, Medicare, and federal retirement rules can change. Always verify coverage details with OPM.gov, Medicare.gov, and the official plan brochure before making enrollment decisions.
Frequently Asked Questions
How much are FEHB premiums increasing in 2026?
According to OPM, the overall average FEHB premium increase for 2026 is 10.2%. The average enrollee share is increasing by 12.3%, while the average government contribution is increasing by 9.2%.
Is the 2026 FEHB premium increase higher than 2025?
No. OPM says the average FEHB enrollee-share increase is 12.3% in 2026, compared with 13.5% in 2025. The 2026 increase is significant, but it is lower than the 2025 average enrollee-share increase.
Why are FEHB premiums increasing in 2026?
OPM points to higher provider and supplier costs, greater prescription drug spending, and increased behavioral health utilization as major drivers of 2026 premium increases. Specialty drugs and GLP-1 medications are also contributing to cost pressure.
When was 2026 FEHB Open Season?
Federal Benefits Open Season for plan year 2026 ran from November 10 through December 8, 2025.
Can I change my FEHB plan after Open Season?
Usually, you can change FEHB coverage during Open Season or after a qualifying life event. If you do not have a qualifying life event, you generally need to wait until the next Open Season to change plans.
Are Postal Service employees still in FEHB?
Postal Service employees and retirees are generally covered under the Postal Service Health Benefits Program, not traditional FEHB. OPM reports that the average PSHB enrollee share is increasing by 11.3% in 2026.
Should federal retirees keep FEHB after enrolling in Medicare?
Many federal retirees keep FEHB after enrolling in Medicare, but the right choice depends on premiums, expected medical use, prescription drugs, provider access, travel needs, and Medicare Part B costs. Retirees should compare FEHB and Medicare together before making a decision.
How does FEHB affect retirement income?
FEHB premiums are generally deducted from a federal retiree’s annuity. Higher premiums can reduce net monthly retirement income, so FEHB should be reviewed alongside pension income, TSP withdrawals, Social Security, taxes, and Medicare costs.
What FEHB plan may be right for you in 2026?
There is no single FEHB plan that fits every federal employee or retiree. The right plan depends on your location, doctors, prescriptions, expected healthcare use, Medicare status, family coverage needs, and total annual cost.
Where should I compare 2026 FEHB plans?
Use OPM’s official plan comparison tool and then confirm final details in the official FEHB brochure. OPM states that the brochure is the official statement of benefits.
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Jeremy Haug
Jeremy is a seasoned contributor for Federal Pension Advisors bringing years of experience in helping federal employees understand their pension and benefits. His goal is to make retirement planning clear, practical, and empowering.
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