Federal Health Insurance Premiums Will Rise 10.9% in 2027
Federal employees will see average premiums climb by 10.9% next year as open enrollment begins in November.
Updated on Sept. 30, 2026 in Insurance
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The Office of Personnel Management announced that federal health insurance premiums will rise by an average of 10.9% for the 2027 plan year. This change affects participants in the Federal Employees Health Benefits and Postal Service Health Benefits programs.
Why it matters
Rising insurance costs impact the take-home pay of federal workers, as premium increases reduce the net earnings of households even when pay remains stagnant. Understanding these changes is critical for managing household budgets during the upcoming enrollment period.
Premiums for federal health plans will increase by an average of 10.9% in 2027, following hikes of 12.3% in 2026 and 13.5% in 2025. While the federal government covers approximately 75% of participant premiums, the remaining cost is borne by federal households.
The players
Office of Personnel Management
The federal agency responsible for managing the health benefits programs for federal employees and retirees.
President Donald Trump
The President of the United States who plans to implement a pay freeze for most General Schedule employees in 2027.
The details
The cost increases reflect broader market shifts affecting the 118 FEHB plan options and 65 PSHB options available for 2027. Participants can manage these cost hikes by reviewing their coverage during the upcoming Open Season. Because the government limits its contribution to 72% of the weighted average of previous premiums, households will see their out-of-pocket costs rise if their specific plan's premium grows faster than the government's defined contribution.
Timeline
September 15, 2026: The government requested information on plan options.
November 9, 2026: The 2027 Open Season begins for plan selection.
December 14, 2026: The 2027 Open Season closes.
Money Landscape
The 10.9% increase marks a continuation of premium growth within the Federal Employees Health Benefits program structure. This follows a period of significant annual hikes, including a 13.5% increase in 2025 and a 12.3% increase in 2026.
Federal households should prepare for a reduction in net take-home pay starting in 2027 due to these higher premiums. Reviewing the 118 available FEHB plan options during the November 9, 2026, Open Season is the most effective way to identify potential cost-saving alternatives.
The takeaway
The 10.9% premium increase underscores the importance of evaluating your current health plan coverage to account for rising personal costs in 2027. Households should mark their calendars for the Open Season enrollment window opening on November 9, 2026, to reassess their coverage options.
Further reading
Learn more about navigating Insurance options and managing your benefits as an employee.
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