Federal employees and retirees should expect to pay about 10.9% more on average for Federal Employees Health Benefits (FEHB) coverage in 2027, according to ClearanceJobs News. It would be the third straight year of premium increases.
Key Facts
- Average increase: 10.9% projected for 2027, per ClearanceJobs News.
- Third consecutive year: Premiums have risen in each of the past two years as well.
- Active employees: Higher premiums mean larger payroll deductions for enrollees.
- Retirees: Federal retirees would see higher monthly premium costs, which are generally deducted from annuity payments.
- Plan variation: The figure is an average. Increases will differ by plan, option, and enrollment type.
- Final rates: The Office of Personnel Management (OPM) sets and publishes official premiums for each plan.
What It Means For You
The 10.9% figure is an average, so your actual increase could be higher or lower depending on your plan.
As a simple illustration, an enrollee paying $200 per pay period today would pay about $21.80 more per pay period at a 10.9% increase. Your own share depends on your plan, enrollment type, and the government contribution.
Retirees on fixed annuities may feel the increase more directly, since premium changes come out of monthly payments with no offsetting pay raise.
Several steps are worth taking before open season:
- Review your current plan's premiums and benefits once OPM publishes the 2027 rates.
- Compare your plan against alternatives, including high-deductible and consumer-driven options.
- Check out-of-pocket costs such as deductibles, copays, and catastrophic limits, not just the premium.
- Look at how your plan covers the doctors, prescriptions, and services you use most.
Our FEHB value guide can help you weigh what your coverage is worth against what it costs.
Context
FEHB is the largest employer-sponsored health insurance program in the country, covering federal employees, retirees, and their families. Premiums are shared between the government and the enrollee, and rising health care costs have pushed rates higher in recent years.
OPM typically announces plan rates in the fall, ahead of the annual Federal Benefits Open Season, which usually runs from mid-November to mid-December. Changes made during open season take effect in January.
Projections can shift before final rates are released. Check OPM's official announcements for plan-specific premiums before making any decisions.
Source: ClearanceJobs News