OPM announced that FEHB 2027 premiums will rise 10.9% on average for the share enrollees pay. The overall premium is up 9.3%.
That sounds like better news than last year, when the enrollee share rose 12.3%. But here’s what most headlines miss: 10.9% is an average. OPM posts each plan’s actual change separately, and your plan may land well above or below it.
Open Season runs November 9 through December 14, 2026. If you don’t look at your own plan’s number, you won’t know your real cost.
Key Takeaways
- 10.9% is an average. Your plan’s actual increase may be higher or lower.
- Several FEHB plans and options are ending, and the default plan is chosen for you.
- In retirement, your premium comes out of your annuity for life.
- Retiree FEHB coverage does not open a Medicare Part B special enrollment window, so timing matters.
What OPM Says Is Driving the Increase
According to OPM, premiums are rising mainly because of higher prices and greater use of services, growth in behavioral and mental health care, and higher prescription drug spending.
None of those pressures are likely to disappear next year. That’s why the question isn’t only “what does my plan cost in 2027?” It’s “what will health premiums do to my retirement income over time?”
What a Small Percentage Looks Like in Dollars
Here’s a simple illustration. If your share were $150 per biweekly pay period, a 10.9% increase would add about $16.35 per pay period, or roughly $425 a year.
Hypothetical round number for illustration. Check your plan’s actual 2027 rate on OPM.gov.
Why This Matters More in Retirement
While you’re working, a premium increase is a payroll deduction.
In retirement, your FEHB premium is taken out of your annuity, every month, for life. Each increase quietly becomes a permanent cut to the income you actually spend.
This is exactly the kind of decision we walk through in the Executive Retirement Briefing on Sunday, October 25, at 7 PM ET. Seeing how healthcare costs fit inside your income plan is the first step. Save your seat here.
Plans and Options Ending for 2027
According to OPM’s 2027 Significant Events Tables, these changes affect FEHB enrollees:
| What’s Changing | Where | If You Do Nothing |
|---|---|---|
| UnitedHealthcare Choice Primary (High Option) leaving FEHB | Arizona, Nevada, Oregon, Washington | Compass Rose Health Plan Standard |
| UnitedHealthcare Choice Plus Primary (High Option) leaving FEHB, staying in PSHB | Arizona (Phoenix and Tucson areas), Nevada, Oregon, Washington | Compass Rose Health Plan Standard |
| Health Net of California leaving FEHB | Northern and Southern California | Compass Rose Health Plan Standard |
| Blue Care Network of Michigan, Southwest Region (High Option) leaving FEHB | Southeast Michigan counties | Compass Rose Health Plan Standard |
| Independent Health (HDHP and Standard) leaving FEHB | Western New York | Compass Rose Health Plan Standard |
Two more changes to know:
- UnitedHealthcare HDHP is reducing its service area in Alabama, Arkansas, Colorado, Florida, Louisiana, Mississippi, Nevada, North Carolina, Oregon, Tennessee, Washington, and parts of Arizona. Affected enrollees default to Compass Rose Health Plan Standard.
- MHBP Value and Consumer options are ending. Enrollees default to MHBP Standard Option, not Compass Rose.
A default plan is chosen because it’s the lowest-cost nationwide option, not because it fits your doctors or your prescriptions. Don’t let a default make this decision for you.
A Simple 3-Step Method Before December 14
1. Pull your 2026 claims and prescriptions.
Your real usage is a better guide than any brochure.
2. Price your top three plans at total cost.
Add the premium, the deductible, the out-of-pocket maximum, and your expected drug costs. The lowest premium isn’t always the lowest cost.
3. Confirm your doctors and drugs are covered.
Then, if you’re 65 or close, check how each plan coordinates with Medicare.
According to OPM, annuitant changes take effect January 1, 2027. For most active employees, changes take effect January 10, 2027.
Planning to Retire? Protect Your Eligibility
According to OPM, to keep FEHB in retirement you generally must:
- be enrolled for the five years of service immediately before retirement, or since your first opportunity to enroll;
- retire on an immediate annuity; and
- be enrolled in FEHB on your retirement date.
For military officers now in federal service: OPM says time covered under TRICARE counts toward the five-year requirement, as long as you’re enrolled in FEHB when you retire.
One permanent rule: OPM says that if you cancel FEHB as an annuitant, you can never re-enroll. Suspending coverage, for example to use TRICARE or a Medicare Advantage plan, is a different choice. Get guidance before you change anything.
The Medicare Timing Trap
OPM says the Part B decision is yours as an FEHB retiree. Once Medicare is primary, your plan may waive some deductibles, copays, and coinsurance. You can also change FEHB plans once, starting 30 days before you become eligible for Medicare.
Here’s the trap. Medicare’s special enrollment window for Part B is tied to coverage from current work, and the 8-month clock starts when you stop working. Retiree FEHB coverage doesn’t restart that clock. According to Medicare.gov, waiting too long can mean a penalty of an extra 10% for each year you could have enrolled, and for most people it lasts for life.
Postal retirees in PSHB who retired after January 1, 2025 generally must enroll in Part B, unless they qualify for an exception.
How FEHB Fits Your Whole Retirement
In the Executive Retirement Briefing, I teach six areas: market, taxes, medical, income, protection, and legacy.
Your FEHB choice sits in Medical, but it touches the others too:
- Premiums come out of your annuity, which is Income.
- Part B timing affects lifetime costs, which is Medical and Protection.
- The coverage your spouse keeps after you’re gone is Legacy.
When these decisions are made one at a time, the gaps show up later. When they’re made together, your plan can respond to more than one future. To me, that’s stewardship: taking care of what you’ve built and the people who depend on it.
Join the Executive Retirement Briefing
Join us for the complimentary Executive Retirement Briefing: “Is Your Retirement Actually Positioned?” on Sunday, October 25, at 7 PM ET. You’ll:
- see how FEHB premiums and Medicare Part B timing fit into your retirement income,
- learn which benefit decisions are permanent and hardest to undo, and
- understand how the six areas work together, so one weak spot doesn’t undo the rest.
Save your seat for the briefing
Educational content only, not individual financial, tax, or legal advice. Plan premiums and benefits vary. Review your plan’s official 2027 brochure and OPM materials before making changes.
