Federal Benefits Open Season 2026: What the 2027 Premium Hikes Mean for Your Federal Employee Retirement

You open the email from your agency. "Open season is here." You sigh, scroll past the plan brochures, and tell yourself you'll deal with it later. Sound familiar?

Here's the thing: that little email is not a chore. For anyone thinking about federal employee retirement, it's one of the only yearly moments when you get to look at the single most expensive benefit you'll carry into retirement, your health insurance, and decide whether it still fits. And this year, the numbers moved.

The system was not designed to explain itself. So let me explain it, the way I would if you were sitting across from me.

What's Actually Changing for 2027

OPM has announced that the 2026 open season runs November 9 through December 14, 2026. Most changes take effect January 1, 2027. Here's what the numbers look like for plan year 2027:

• FEHB: overall average premium up 9.3%. The enrollee share is up 10.9%, and the government share is up 8.6%.
• PSHB (the Postal Service Health Benefits program): overall average premium up 6.7%. The enrollee share is up 8.2%, and the government share is up 6.0%.

OPM points to higher inpatient and surgical costs, expanded behavioral health care, and rising prescription drug spending, especially GLP-1s and specialty drugs.

Notice something? You are picking up a bigger percentage of the increase than the government is. And those are averages. Your plan could land higher or lower, which is exactly why "I'll just keep what I have" is a decision, not a default.

Why This Is a Retirement Issue, Not Just a Paycheck Issue

Let me be direct. Most people treat open season as a today problem: what will this cost me per pay period? But if you're 5, 10, or 15 years from retiring, you're really choosing the plan you may carry into retirement. In retirement, those premiums come out of your annuity with after-tax dollars, and they tend to keep climbing.

Think about a postal employee I'll call Denise (not her real name, details changed). She kept the same plan for twelve years because "it was fine." When she finally priced out her options before retiring, she found a plan with similar coverage for her situation at a meaningfully lower premium. She'd been overpaying for years because nobody told her to look. This is not a small number, and it compounds.

What HR Won't Tell You About Health Coverage and Retirement

HR's job is to run open season. Their job is not to model your retirement. So here are the questions that rarely get asked:

• Do you meet the rule to keep coverage in retirement? Generally you need to have been enrolled in FEHB (or PSHB) for the five years right before you retire. If you're thinking about changing plans or dropping coverage, ask how that affects eligibility before you click anything.
• What happens when Medicare enters the picture? The 2026 standard Medicare Part B premium is $202.90 a month, and the deductible is $283. Higher earners pay more through IRMAA, which in 2026 starts at $109,000 for single filers and $218,000 for joint filers, based on income from two years prior. Part B timing and how it coordinates with your federal plan is one of the most misunderstood decisions in federal retirement.
• Do you have your family paperwork ready? New this year: the FEHB Protection Act of 2025 requires documentation to verify new family members when you add them to coverage. Don't wait until the deadline to go digging for a marriage or birth certificate.

Your Open Season Game Plan

Here's how I'd approach it, step by step:

1. Pull up last year's actual spending. Premiums plus what you really paid in copays, deductibles, and prescriptions. The cheapest premium isn't always the cheapest plan.
2. Compare at least three plans using your real prescriptions and your real doctors.
3. Ask the retirement question. If you're within ten years of retiring, which plan will you want at 62 or 65, with Medicare in the mix?
4. Look at the extras. OPM is rolling out a new FSAFEDS debit card for eligible expenses, and the PSHB enrollment portal is being redesigned.
5. Write down your decision and your reason. Future you will thank you.

Three Questions to Ask Yourself This Week

Before November 9 rolls around, sit down with a cup of coffee and answer these honestly. First: if my premium keeps rising by this much for the next ten years, what does that do to my retirement budget? Second: do I know exactly which plan I'd want in retirement, and have I priced it? Third: do I know how Medicare and my federal plan will work together when the time comes, or am I assuming?

If any of those gave you a pause, good. That pause is information. It means there's money, or peace of mind, on the table, and you now know where to look.

The Bigger Picture

You've earned one of the most powerful retirement packages in America. But the biggest threat to collecting it isn't the government. It's not knowing how to maximize what you actually have. Open season is a small, annual reminder that the details matter, and that confusion about your benefits is not a character flaw. The system was built to be complex. You deserve clarity.

After all your years of service, clarity is the baseline, not a luxury.

Frequently Asked Questions

When is federal open season for 2027 coverage?

The 2026 Federal Benefits Open Season runs from November 9 through December 14, 2026. Most elections made during this window take effect January 1, 2027.

How much are FEHB and PSHB premiums going up in 2027?

OPM reports an average FEHB premium increase of 9.3%, with enrollees paying 10.9% more on average. PSHB premiums rise 6.7% on average, with the enrollee share up 8.2%. Your actual change depends on your specific plan.

Should I change my health plan before I retire?

It depends on your plan, your health needs, and your retirement timeline. Generally, to carry FEHB or PSHB into retirement you need continuous coverage for the five years before retirement, so confirm eligibility before making big changes.

What is the Medicare Part B premium in 2026?

The standard 2026 Part B premium is $202.90 per month with a $283 annual deductible. Higher-income beneficiaries pay an IRMAA surcharge starting at $109,000 (single) or $218,000 (married filing jointly) of income from two years earlier.

So, Have You Run Your Numbers?

If you've never looked at how your health coverage, your pension, and Medicare fit together, this is the moment to start. Take five minutes and get your Federal Retirement Blueprint at quiz.fedsecure.org. The weight lifts when you know where you stand.

This content is educational and not individualized financial, tax, or legal advice. Figures reflect OPM and CMS information at time of publication. Client examples are anonymized composites. Results vary.