Federal Employees Face 10.9% Premium Increase and Plan Cuts for 2027
Federal employees and annuitants will see the average enrollee share of health insurance premiums increase by 10.9% in 2027, according to a report by Federal News Network. The Federal Employees Health Benefits (FEHB) program will feature 118 available plans next year, down from 132 plans this year, affecting roughly 39,000 enrollees who must select new coverage or face automatic enrollment changes.
Shifting Premium Costs Across Carriers
While the average enrollee share rises by 10.9%, individual plan adjustments vary widely across the program. Self-only enrollees in the Kaiser Permanente High plan in the Mid-Atlantic region will experience a 3.7% decrease in premiums, while the GEHA Standard premium remains unchanged. Conversely, self-only enrollees in MHBP Standard face a 63% premium increase. Enrollees can verify specific rate changes on carrier websites, the final page of individual FEHB plan brochures, or the Office of Personnel Management (OPM) Open Season site.
Government contributions toward these premiums are calculated using the 72% program-wide weighted average premium by enrollment type. The government pays 75% of the premium for 64 plans under self & family enrollment, 58 plans for self-plus-one, and 59 plans for self-only. Certain national plans receive this 75% government contribution, including Aetna Advantage & APWU Consumer Driven Option, BCBS FEP Blue Focus, Compass Rose Standard, GEHA Elevate, HDHP, & Standard, and SAMBA Standard.
Discontinued FEHB Plans Trigger Auto-Enrollment in Compass Rose Standard
The reduction from 132 to 118 available FEHB plans eliminates 14 options for the upcoming year. Enrollees currently participating in discontinued regional offerings—such as Blue Care Network of Michigan High Option, Health Net of California options, Independent Health options, and specified UnitedHealthcare Choice and HDHP plans across multiple states—will be auto-enrolled in Compass Rose Standard if they make no active selection during Open Season.
Nationwide plan changes also impact large groups of participants. The termination of two nationwide MHBP plans—Value and Consumer Option—will result in members being auto-enrolled into MHBP Standard. Meanwhile, UnitedHealthcare members enrolled in Choice Plus or Choice Plus Advanced in several states will transition to the Choice Plus Primary plan. Regional reductions further alter coverage, as Presbyterian in New Mexico has reduced its service area by 28 counties, requiring members outside the retained area to travel for full benefits or rely solely on emergency services. Sharp Health Plan added a basic option in San Diego as the sole new FEHB plan for next year, while Health Alliance Plan in Michigan expanded its service coverage by 12 counties.
Mandatory Prior Authorization for Weight Loss Medications
Benefit structures are changing across multiple plans, impacting out-of-pocket expenses beyond base premiums. OPM now mandates prior authorization for GLP-1 weight loss drugs across all FEHB plans, requiring Intensive Behavioral Therapy both before and during treatment with these medications. Specific plan adjustments include higher deductibles, catastrophic limits, and increased cost shares for doctor visits under MHBP Standard, alongside rising copays for emergency room, inpatient hospital, maternity, and mental health admissions under BCBS Basic and Standard plans.
Higher Contribution Limits for Tax-Advantaged Health Accounts
Enrollees seeking to offset rising healthcare expenses can utilize High-Deductible Health Plans paired with Health Savings Accounts (HSAs), which feature lower premiums and employer-funded premium pass-throughs. Next year, maximum HSA contributions will increase to $4,500 for individuals with self-only coverage and $9,000 for those enrolled in self-plus-one or self & family plans. These accounts offer triple tax advantages through tax-free payroll contributions, tax-free investment growth, and tax-free withdrawals for qualified medical expenses.
Alternatively, the FSAFeds program allows federal employees to contribute up to $3,500 pre-tax to a healthcare flexible spending account, sheltering funds from federal, state, and FICA payroll taxes. While participants face a “use it or lose it” rule with a $700 rollover limit for unspent funds, FSAFeds will introduce a debit card for the first time next year, eliminating the previous requirement to pay out-of-pocket and wait for reimbursement.
Frequently Asked Questions About 2027 FEHB Changes
When does the 2027 Open Season begin?
Open Season begins on November 9, 2026, which is also the release date for Consumers’ Checkbook’s 2027 Guide to Health Plans for Federal Employees, according to Federal News Network.
How many FEHB plans are available for 2027?
There are 118 total FEHB plans available for 2027, representing a reduction of 14 plans from the 132 plans offered this year.
What happens if my current FEHB plan is terminated?
Enrollees in terminated plans who make no active changes during Open Season are automatically enrolled in designated replacement plans, such as Compass Rose Standard for several regional departures or MHBP Standard for terminated MHBP options.
What are the new HSA contribution limits for 2027?
For enrollees choosing HSAs, the maximum funding caps will adjust to $4,500 for individual-only coverage and $9,000 for self-plus-one or self & family plans.
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