Discover How Upcoming FEHB Changes Will Impact Your 2026 Health Coverage

The Federal Employees Health Benefits (FEHB) program is adjusting its premium costs for 2026, with significant implications for federal employees and retirees. The average enrollee premium is set to increase by 12.3%. This rise is attributed to an aging workforce facing more chronic health conditions and higher prescription drug utilization, particularly for medications prescribed for weight management.

Overview of Premium Changes for 2026

With the new changes effective in 2026, federal employees should prepare for varying premium adjustments across different plans. Among the 129 available FEHB plans:

• Self-only premiums will decrease in 23 plans.
• 57 plans will see increases below the average of 12.3%.
• 49 plans will experience increases above this average.

The most notable reduction comes from the Kaiser Permanente High plan in Georgia, which will see an 18% decrease. This translates to savings of approximately $727 for enrollees. Conversely, the Panama Canal Benefit Plan will face the steepest rise at 139%, adding $4,622 in costs annually for those in the Panama Canal Zone.

Comparative Premium Increases

In addition to the premium shifts, some plans are significantly impacted:

• UnitedHealthcare Choice Plus Primary will see a 99% increase, costing enrollees an extra $2,330.
• Gains in other plans vary, making it essential to evaluate personal health care options.

Understanding Enrollment Choices

During the Open Season, which runs from November 10 to December 8, employees should assess their current coverage options. Approximately two-thirds of federal employees are enrolled in Blue Cross Blue Shield (BCBS) plans. While some BCBS options raised their premiums, Standard plans increased less than the average.

Self-Plus-One vs. Self-and-Family Enrollment

For married couples or two-person families, selecting between self-plus-one or self-and-family enrollment is crucial. In some cases, choosing self-and-family may be more cost-effective:

• For instance, enrollment in the D.C.-area Kaiser High plan can save couples $66.86 bi-weekly, amounting to $1,738 annually.

The Government’s Contribution to Premiums

The government contributes differently based on the selected plan. Enrollees typically receive either 72% of the weighted average or 75% of their plan’s total premium, whichever is lower. In 2026, 66 of the 132 plans will qualify for the maximum government contribution of 75%.

FEDVIP Premium Trends

FEDVIP premiums for dental and vision coverage will witness modest increases in 2026, at an average of 3.3% for dental plans and 0.5% for vision plans. This marks a continuing trend of lower premium increases compared to FEHB plans.

Final Considerations for Enrollment

With FEHB premiums rising sharply in 2026, it is advisable for federal employees to reevaluate their current health plans. Though cost is a significant factor, it’s a good practice to consider other critical aspects like in-network providers and prescription drug coverage. The upcoming Open Season offers ample opportunity to explore all available options.