FEHB premiums to rise 10.9% for federal employees in 2027

The U.S. Office of Personnel Management (OPM) has announced that the enrollee share of Federal Employees Health Benefits (FEHB) premiums will increase by an average of 10.9% in 2027. This marks the third consecutive year that federal employees and retirees have faced double-digit increases in their portion of health insurance costs.

While the overall average premium growth rate has slowed slightly compared to previous years, the direct cost to enrollees remains high. For 2027, the FEHB program will continue to offer 118 plan options through 45 different carriers.

This premium hike coincides with a proposed presidential alternative pay plan that suggests a 0% increase in General Schedule (GS) base or locality pay for most civilian employees in 2027. If this pay freeze is implemented, the premium increases would be absorbed entirely from employees' take-home pay. While the freeze is currently a proposal and not law, a bipartisan group of 110 lawmakers has urged Congress to reject it. Some law enforcement personnel may be exempt from the freeze, with a proposed 3.8% increase under special salary rate authority.