What's Happening?
Federal employees and retirees are set to experience a substantial increase in their health coverage costs in 2026, with the average enrollee share of premiums rising by 12.3%. This marks the second consecutive
year of double-digit premium increases, attributed to an aging federal workforce and increased prescription drug usage, including medications for weight loss. The Office of Personnel Management (OPM) has highlighted these factors as key contributors to the rising costs. While some plans will see decreases, such as an 18% reduction for Kaiser Permanente High in Georgia, others will experience significant hikes. Notably, the Panama Canal Benefit Plan will see a 139% increase, and UnitedHealthcare Choice Plus Primary will rise by 99%. These changes will impact federal employees' budgets, making it crucial for them to evaluate their current plans and consider alternatives during the upcoming Open Season.
Why It's Important?
The increase in health coverage costs for federal employees is significant as it directly affects their financial planning and disposable income. With the government contributing a varying percentage towards premiums, employees enrolled in higher-cost plans may find themselves shouldering a larger portion of the expenses. This situation underscores the importance of carefully reviewing health plan options to find the most cost-effective coverage. The rising costs also reflect broader trends in healthcare, such as the increasing prevalence of chronic conditions and the use of expensive medications. These factors could influence public policy discussions on healthcare affordability and access, potentially impacting future legislative actions aimed at controlling healthcare costs.
What's Next?
During the 2026 FEHB Open Season, running from November 10 to December 8, federal employees will have the opportunity to compare and select health plans that best meet their needs and budgets. It is advisable for employees to consider plans where the government covers 75% of the total premium, as this could offer significant savings. Additionally, employees should assess in-network providers, prescription drug coverage, and any unique benefits that are important to them. The decisions made during this period will have lasting financial implications, making it essential for employees to make informed choices.
