Federal employees and retirees face an average premium increase of 12.3% for health coverage in 2026 under the Federal Employees Health Benefits (FEHB) program. The Office of Personnel Management (OPM) attributes this hike to an aging federal workforce with more chronic health issues and increased prescription drug use, including GLP-1 drugs for weight loss. This article reviews key premium changes, enrollment advice, government contributions, and supplemental insurance options for the upcoming Open Season.
Trends in FEHB Premium Increases
The premium increase for 2026 marks the second consecutive year of double-digit hikes, although it is slightly lower than the increase in 2025. Four years prior, the average increase was just 3.8%. These rising costs signal that federal employees and retirees should prepare for further increases in coming years.
How Individual FEHB Plans Are Changing
Among 129 FEHB plans offered in both 2025 and 2026, premium changes are uneven:
- 23 plans will see premium decreases for self-only coverage.
- 57 plans have premiums rising below the 12.3% average.
- 49 plans will experience increases above this average.
The largest premium decrease is for Kaiser Permanente High (F81) in Georgia, with an 18% reduction saving enrollees about $727 annually. On the other extreme, premium increases are dramatic for some plans—most notably the Panama Canal Benefit Plan (431), with a 139% hike, adding $4,622 per enrollee. UnitedHealthcare Choice Plus Primary (WF1) faces a 99% increase, approximately a $2,330 rise per enrollee annually.
Blue Cross Blue Shield Plans: Cost and Coverage Variations
Blue Cross Blue Shield (BCBS) covers roughly two-thirds of federal employees through Standard, Basic, or FEP Blue Focus plans. Key differences include:
Standard premiums rose less than average.
Basic and FEP Blue Focus premiums increased above average.
Standard is unique in offering out-of-network provider access, mail-order prescriptions (only for annuitants with Part B in Basic), skilled nursing care, and annual IVF coverage up to $25,000. Families considering cost savings could switch from Standard to Basic or FEP Blue Focus, saving between $2,621 and $7,792 annually, while retaining BCBS network providers.
Enrollment Options for Two-Person Families
Married couples or two-person families can choose between self-plus-one or self-and-family enrollment. Although self-plus-one typically costs less, 39 FEHB plans price self-and-family enrollment lower, and nine plans charge identical premiums for both.
For example, two-person families choosing the Kaiser High (E3) plan in D.C. could save $1,738 annually by enrolling as self-and-family instead of self-plus-one. Careful review of premiums published in FEHB brochures can identify the most cost-effective option without affecting coverage benefits.
Government Contribution to Premiums
The government covers either 72% of the weighted average premium for all plans or 75% of the premium for the individual plan selected—whichever is less. Low-cost plans usually attract the full 75% contribution, while high-cost plans receive a lower share.
In 2026:
66 of 132 plans qualify for the 75% maximum government contribution for self-only enrollment. This includes BCBS FEP Blue Focus, GEHA Standard, MHBP Standard, Aetna Advantage, UnitedHealthcare Choice Primary, and several Kaiser plans.
Some high-premium plans, such as Aetna Open Access High Option (JR1) in Northern New Jersey, see government contributions covering as little as 27% of premiums.
FEDVIP Benefits and Premium Changes
Federal Employee Dental and Vision Insurance Program (FEDVIP) premiums continue to rise more modestly. Dental premiums will increase by 3.3%, and vision premiums by 0.5% on average in 2026, far below FEHB increases.
Preparing for the 2026 FEHB Open Season
Given the guaranteed premium hikes, federal employees and retirees should:
- Evaluate current plan premiums and coverage.
- Explore other FEHB plans for better cost-value balance.
- Consider government premium contributions to select affordable options.
- Review in-network providers, prescription coverage, and special benefits like IVF care.
The 2026 Open Season runs from November 10 to December 8, providing ample time to compare plans and make informed decisions.
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