What's Happening?
The 2026 FEHB Open Season presents federal employees with fewer plan choices and higher premiums. The number of available plans has decreased from 146 to 132, with several local plans exiting the program.
Notably, the National Association of Letter Carriers (NALC) will no longer offer certain plans, although they remain available through PSHB for USPS employees. Premiums are set to increase, and changes to plan benefits may impact out-of-pocket costs. Employees are encouraged to review Section 2 of their plan's brochure for updates on benefits, cost-sharing adjustments, and pre-authorization requirements.
Why It's Important?
The reduction in plan options and increase in premiums could significantly affect federal employees' healthcare costs. With fewer choices, employees may need to switch plans to manage expenses effectively. The changes underscore the importance of thorough plan evaluation during Open Season to ensure optimal coverage and cost savings. Utilizing tax-preferred savings accounts like FSAs and HSAs can help offset rising healthcare costs, providing employees with financial relief amid premium hikes.
What's Next?
Federal employees should actively review their healthcare plans during Open Season, considering factors such as premium changes, provider networks, and prescription drug coverage. Switching to plans with lower estimated yearly costs, such as HDHPs with HSAs, may offer savings. Employees are advised to enroll in FSAs to save on qualified healthcare expenses, with contribution limits increasing slightly next year.
Beyond the Headlines
The changes in FEHB plans reflect broader trends in healthcare policy, including efforts to streamline offerings and manage costs. The focus on tax-preferred savings accounts highlights the government's push for individuals to take greater responsibility for their healthcare expenses, potentially leading to shifts in how employees approach healthcare planning.
