Last week, the U.S. Office of Personnel Management (OPM) released the 2026 updates for the Federal Employees Health Benefits (FEHB) and Postal Service Health Benefits (PSHB) programs. Two developments stand out: a substantial rise in enrollee premium contributions and a shift in the roster of available plans. This article reviews the premium increases, plan changes, and what enrollees must know for the upcoming Open Season.
Premium Hike Across FEHB: What to Expect
Average Increase and Key Drivers
In 2026, federal employees and retirees enrolled in FEHB will see their share of premiums rise 12.3 % on average.
OPM cites several underlying causes:
- An aging enrollee base with more chronic conditions
- Rising utilization of medical services and diagnostics
- Escalating costs of specialty prescriptions (notably GLP-1 and other novel therapies)
- Broader coverage demands for behavioral and virtual care
- Constrained federal contributions (capped at 72 % of the weighted average) put more burden on enrollees
Variation Across Plans
Not every FEHB plan sees the same change:
- Among the 129 plans carried over from 2025, 23 will see a decrease in the enrollee share
- 57 will increase but stay below the 12.3 % average
- 49 will rise above the average increase
Some specific plan-level swings are striking:
Kaiser Permanente High (F81) in Georgia will drop enrollee cost by about 18 %, saving participants roughly $727.
Conversely, the Panama Canal Benefit Plan (431) will surge 139 %, adding around $4,622.
UnitedHealthcare Choice Plus Primary (WF1) will see a 99 % increase (≈ $2,330).
Government Contribution and Aggregate Premiums
OPM’s 2026 rate tables show that the program-wide weighted average premium for “Self Only” plans is $451.05 biweekly, with corresponding maximum government subsidies capped at $324.76 (72 %) .
In sum, the federal contribution rises modestly (projected ~8 % increase) compared to more aggressive premium growth overall.
FEHB Plan Lineup Changes
Plans Exiting the Program
In 2026, the FEHB program will drop six plans (eight options).
Among them:
- NALC Health Benefit Plan (both High and CDHP) — nationwide
- Independent Health High (NY)
- Blue Care Network of Michigan High
- AvMed HDHP and Standard (Florida)
- Priority Health High (Michigan)
- Health Alliance HMO Standard
Affected enrollees will receive notices. If no action is taken, individuals will be auto-enrolled into GEHA Elevate, the lowest-cost nationwide PPO plan.
Additions to the FEHB Shelf
A few new offerings will debut, such as Kaiser’s Prosper plan (Fresno, CA) and Baylor Scott & White’s Value plan (Texas markets)
PSHB: Premium Trends and Plan Changes
Enrollee Cost Increases
Postal Service Health Benefits enrollees will face an average 11.3 % increase in premium share.
Among the 75 PSHB plans:
- 13 plans will see a decrease
- 1 remains steady
- 35 will rise below the average
- 26 will exceed the 11.3 % threshold
For example:
UnitedHealthcare Choice Plus Primary East (JYA) will drop 30.37 %, saving enrollees about $891
Medical Mutual of Ohio Standard (D3D) rises by 56.42 %, an increase of about $4,175
Government contribution rates for PSHB are also published: the 2026 biweekly maximum subsidy is $304.64 for Self Only, $657.50 for Self Plus One, and $712.30 for Self & Family.
Plans Exiting PSHB
Two GEHA “Elevate” offerings (Elevate and Elevate Plus) will be removed nationwide.
Enrollees without action will default to BCBS FEP Blue Focus
Conclusion
Consecutive double-digit increases in FEHB: 2026 marks the second year in a row of steep enrollee cost hikes, and more may follow given broader health cost trends.
Wide dispersion of impact: Some plans will become significantly more expensive, while others may offer modest relief (or even reductions).
Plan exits demand vigilance: If your current FEHB or PSHB plan is being discontinued, you’ll need to actively choose a new option during Open Season—or be stuck in a default plan that may not suit your needs.
Review is more important than ever: Even for plans that persist, the shift in premiums or benefits may change cost-effectiveness or network coverage.
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