Federal Employee Health Benefits Prices Rise Again for 2026

WASHINGTON, D.C. — The Office of Personnel Management (OPM) has announced significant changes to the Federal Employee Health Benefits (FEHB) plans for 2026. Federal employees and annuitants can expect their average premium contributions to rise by 12.3% next year, slightly better than the 13.5% increase in 2025.

The increase is influenced by factors such as an aging workforce, the rise of chronic health conditions, and an increased demand for prescription medications, notably GLP-1 drugs commonly used for weight loss. OPM’s latest report covers 129 FEHB plans that will remain available, with varied impacts on their premiums.

For example, 23 plans will see decreases in self-only premiums, while 57 plans will increase below the average and 49 will increase above it. The most significant reduction will be for the Kaiser Permanente High plan in Georgia, which will drop by 18%, saving enrollees approximately $727. Conversely, the Panama Canal Benefit Plan will see a staggering 139% rise, costing an extra $4,622 for at-risk enrollees.

Federal employees will also have fewer options as 14 plans are being removed from the FEHB program. One notable exit is from the National Association of Letter Carriers, which will discontinue two of their FEHB plans but continue offering Postal Service Health Benefits (PSHB) plans.

Notices will be sent to affected enrollees, and those with terminated plans must choose a new option during Open Season, which runs from November 11 to December 9. If no action is taken, enrollees will be automatically switched to the lowest-cost nationwide PPO plan.

New offerings for 2026 include Kaiser’s Prosper plan in California and Baylor Scott and White’s Value plan in Texas. Enrollee contributions to PSHB plans will also see an 11.3% increase next year.

To prepare for this Open Season, individuals are advised to thoroughly assess their plans. A minor effort could lead to improved health coverage and significant savings.