Federal Employees Health Benefits (FEHB) premiums will rise again in 2027, marking the third consecutive year of double‑digit increases for enrollees. The Office of Personnel Management (OPM) has released the official 2027 rates, showing that federal employees and retirees will pay an average of 10.9% more toward their FEHB premiums beginning in January.
The Scale of the 2027 Increase
The 10.9% average increase represents a slight moderation compared to recent years – 12.3% in 2026 and 13.5% in 2025 – but still continues a steep upward trend in enrollee costs. OPM also reports that the overall average FEHB premium (including both the government and enrollee share) will rise 9.3%, down from 10.2% in 2026.
For 2027, FEHB will include 118 plan options from 45 carriers, giving enrollees a wide but increasingly costly set of choices during Open Season.
WHAT’S Driving the Higher Premiums
OPM attributes the 2027 increases to several system‑wide cost pressures affecting both public and private health plans:
- Rising prices and utilization across inpatient, outpatient, physician, and surgical services.
- Growth in behavioral and mental health care, which continues to see higher demand.
- Higher prescription drug spending, including rapid adoption of GLP‑1 medications for weight loss and diabetes.
These factors reflect broader national trends rather than FEHB‑specific issues, but they directly influence the premiums federal workers and retirees pay.
Impact on Federal Employees and Retirees
For many enrollees, the 2027 increase will feel familiar: it is the third straight year of double‑digit growth in the enrollee share of premiums. Although the rate of increase has slowed slightly, the cumulative effect over multiple years means federal families may face significantly higher monthly costs than earlier in the decade.
OPM emphasizes that while premium growth has moderated, enrollees should expect meaningful year‑to‑year changes in plan pricing and benefits. Careful comparison during Open Season will be essential, especially for those considering switching plans to manage costs.
Federal Retirement Seminars: What They Cover and Skip
Dental and Vision Plans
The news is somewhat better for FEDVIP participants.
- Dental premiums will rise by just 1.0% on average.
- Vision premiums will increase by 1.6%.
These modest adjustments may help offset some of the financial pressure from FEHB increases.
Looking Ahead
The 2027 FEHB premium increases underscore ongoing challenges in controlling healthcare costs nationwide. While OPM has slowed the pace of growth compared to prior years, federal employees and retirees will still see noticeable increases in their biweekly or monthly deductions.
As Open Season approaches, enrollees should review plan brochures carefully, compare total costs – not just premiums – and evaluate whether their current coverage still meets their needs in a rising‑cost environment.
