FEHB Changes for 2027: Higher Costs and Ways to Save
Federal employees and retirees should review their health coverage before letting it renew for 2027. The average enrollee share of Federal Employees Health Benefits (FEHB) premiums will increase by 10.9%, although individual plans may rise more, stay unchanged or become cheaper.
OPM’s premium charts show each plan’s cost and government contribution. Open Season runs from November 9 through December 14, 2026, giving eligible participants time to compare coverage and make changes.
Look Beyond the Monthly Premium
A lower premium does not always mean lower overall spending. Deductibles, prescription costs, hospital charges and out-of-pocket limits can make a significant difference.
For example, MHBP Standard is increasing several cost-sharing amounts and replacing certain fixed hospital and emergency-care copays with percentage-based coinsurance. BCBS Basic and Standard are also increasing some charges. Read Section 2, “Changes for 2027,” in your official plan brochure before deciding whether to stay.
Check Whether Your Plan Is Changing
FEHB will offer 118 plan options across 45 carriers in 2027, down from 132 options in 2026. Availability depends on your location and eligibility.
Some plans are leaving, merging or changing service areas. MHBP Value and Consumer Option members, for example, will move automatically into MHBP Standard unless they choose another option. Do not assume an automatic transfer will provide the best fit for your doctors, prescriptions or budget. Review your carrier’s notices and the OPM Open Season resources.
Consider an HSA-Eligible Health Plan
A qualifying high-deductible health plan may offer lower premiums and access to a Health Savings Account (HSA). Some FEHB plans also contribute part of the premium to that account.
For eligible individuals, the IRS’s 2027 HSA limits are:
| Coverage | Annual contribution limit |
|---|---|
| Self-only | $4,500 |
| Family coverage, including eligible self-plus-one coverage | $9,000 |
Plan contributions count toward these limits. Before switching, compare the deductible and potential medical spending, not just the premium savings.
Use FSAFEDS for Predictable Expenses
Eligible active federal employees can use FSAFEDS to set aside pretax money for qualified expenses such as copays, prescriptions, dental care and vision care. Actual tax savings depend on your circumstances.
New for 2027, participants can choose a FSAFEDS Visa FSA Card for eligible health care and limited-expense accounts. It allows qualifying purchases to be paid directly from the account rather than requiring an initial out-of-pocket payment and later reimbursement. Keep any required receipts.
Budget carefully because unused funds above the permitted carryover can be forfeited. HSA users should also check account compatibility: a general-purpose health FSA can affect HSA eligibility, while a limited-expense FSA may be an appropriate alternative.
Before Open Season Ends
Compare your current plan with alternatives based on:
Annual premiums and expected medical expenses.
Doctor and hospital networks.
Prescription coverage and authorization requirements.
Deductibles and maximum out-of-pocket costs.
Eligibility for an HSA or FSA.
The goal is not simply to find the cheapest premium. It is to choose coverage that meets your household’s needs at a manageable total cost.
