2027 FEHB Open Season

2027 FEHB Premiums Rise. Here’s What to Do During Open Season.

FEHB premiums are rising 10.9% in 2027. Here's exactly what that costs you in dollars, the 5 mistakes to avoid this Open Season, and a step-by-step action plan before the December 14 deadline.

Open Season is here. As of November 9, federal employees and eligible retirees have just five weeks to review, compare, and update their health coverage before the December 14 deadline.

2027 FEHB Premiums to Rise 10.9% On Average

The Office of Personnel Management has published the 2027 FEHB and PSHB premium rates, and the numbers are significant. The average federal employee will absorb a 10.9% increase in their share of FEHB premiums next year.

The good news: Open Season exists precisely so you can do something about it. This guide breaks down what the increase could cost you in actual dollars, the most common mistakes federal employees make every Open Season, and a clear action plan to make the most of the next five weeks.

What's Changing in 2027: The Numbers from OPM

OPM's official Federal Benefits Open Season Highlights for Plan Year 2027 confirms the following average changes:

FEHB (Federal Employees Health Benefits):

PSHB (Postal Service Health Benefits — USPS employees and retirees):

One pattern worth noting: both programs are seeing slightly lower increases in 2027 than in 2026, which is a modest improvement. But "lower increase" is not the same as affordable. What's driving the increases? OPM points to rising prices and utilization across inpatient care, physician visits, outpatient services, and surgical procedures. This is a structural trend in healthcare costs.

How 10.9% Increase in Premiums Hits Your Paycheck

Percentages are easy to gloss over. Here's what a 10.9% increase in your enrollee share looks like in real dollars, depending on your current biweekly premium:

Note: These figures are illustrative examples based on the 10.9% average enrollee share increase published by OPM. Your actual increase will vary by plan. Check your specific plan's 2027 rate at opm.gov before Open Season closes.

For a federal employee earning $75,000 a year, an extra $850 in health premiums represents money that could otherwise be going into TSP, an emergency fund, or other savings. That's exactly why staying in your current plan by default, without comparing, is a financial decision worth scrutinizing.

5 Mistakes Federal Employees Make Every Open Season

Mistake #1: Auto-Renewing Without Comparing

If you do nothing during Open Season, your current plan rolls over automatically. Accepting whatever premium increase your plan is charging, without knowing whether a comparable plan costs significantly less, is not a smart move. Plans change their rates, networks, and benefits every year. Last year's best option may not be this year's.

Mistake #2: Falling for the Self Plus One Trap

Here's a counterintuitive one OPM flags directly: in some plans, the enrollee share for Self Plus One coverage is actually higher than Self and Family. If you're covering one dependent, it's worth checking both options side by side.

Mistake #3: Only Looking at the Premium, Not the Total Cost

A lower monthly premium isn't always the cheaper plan. High-deductible health plans may look attractive until you factor in out-of-pocket maximums, copays, and whether your current doctors are in-network.

Mistake #4: Not Thinking About Healthcare in Retirement

If you're within 5–10 years of retirement, your Open Season decision carries more weight than you might realize. To keep FEHB coverage into retirement, you must be enrolled in FEHB for the five consecutive years immediately before you retire. Which plan you're in matters less than the fact that you stay continuously enrolled. If you're considering dropping coverage temporarily, talk to a financial advisor first.

Mistake #5: Waiting Until December 13

Open Season closes at 11:59 pm on December 14. Federal employees who wait until the last minute often find themselves rushing through a decision. The best plan reviews happen early when there's still time to ask questions, compare options, and make a confident choice.

UB Wealth is Here to Help

A 10.9% increase in what you pay for health insurance is a meaningful hit to your annual budget. It compounds against rising prices, TSP contribution decisions, and the retirement income you're building toward.

If you want to talk through how your benefits fit into your overall financial plan, we're here. UB Wealth works with federal employees and retirees so we understand the FEHB system, FERS, TSP, and how it all connects.

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