Federal employees and annuitants are heading for yet another year of large increases to their health insurance premiums, in both the Federal Employees Health Benefits (FEHB) program and the Postal Service Health Benefits (PSHB) program.
The Office of Personnel Management announced Thursday that FEHB participants will pay an average of 12.3% more toward their insurance premiums starting in January 2026 — or in dollars, an average of $26.40 more per pay period.
The upcoming 12.3% premium spike follows multiple large premium increases over the last few years for FEHB enrollees. Federal employees saw an average of a 13.5% increase for the 2025 plan year — the largest year-over-year increase in well over a decade. Feds also saw a 7.7% jump in 2024, and an 8.7% increase in 2023.

The PSHB program, which is open to more than 2 million USPS employees, annuitants and family members, is also set for a large premium increase for 2026. Enrollees in PSHB will be paying 11.3% more, on average, toward their 2026 premiums. In dollars, that’s about $21.51 more per pay period.
The federal government covers about 75% of a participant’s premium — and no more than 72% of the weighted average of the previous year’s federal health insurance premiums.
When accounting for the government’s share of FEHB costs, which is increasing by about 9.2%, premiums will rise by 10.2% overall. PSHB premiums are increasing by 9% overall, when including the government’s portion of the cost, which is going up by 8%.
Open Season during a shutdown
For this year’s announcement, federal employees are facing more uncertainty than usual. The upcoming premium increases for the government’s health insurance programs are compounded by the current shutdown, as well as the possibility of missing paychecks if the lapse in appropriations drags on.
If a shutdown extends into November, OPM has said Open Season would still go on as normal. Health benefits for federal and postal enrollees continue throughout the shutdown, but premium payments are paused for the duration of the shutdown.
Additionally, participants in FEHB, PSHB and the Federal Employees Dental and Vision Insurance Program (FEDVIP) — regardless of whether they are furloughed, excepted or exempt — can still make changes to their plan options during Open Season, even in the case of a shutdown. OPM finances those programs through a trust fund, rather than appropriations, meaning the funding is not expected to be interrupted.
But at the same time, OPM is now managing the FEHB and PSHB programs with significantly less staffing than in previous years. Due to the Trump administration’s overhauls to the federal workforce, the agency is on track to lose 1,000 employees, or about one-third of its total workforce, by the end of the calendar year.
OPM’s healthcare and insurance office, which manages FEHB, PSHB, FEDVIP and other insurance programs, has lost a total of 80 employees this year through retirements, attrition, the deferred resignation program (DRP) and probationary terminations.
Over the summer, OPM’s inspector general office warned that those staffing shortages, coupled with funding issues, put the PSHB’s central enrollment platform at risk of an operational failure. All PSHB participants must use the online platform to access their benefits and make changes to their health insurance options during Open Season.
A separate Government Accountability Office report earlier this year also found that recent OPM staffing vacancies led to a suspension of fraud risk assessments in the FEHB program.
Looking ahead to 2026
Premium rates for federal health insurance programs inevitably increase to some extent each year. Though the premium increases for enrollees average to 12.3% and 11.3% for 2026, some plan options will have smaller cost increases, while others will have bigger ones.
The large premium increase for federal health insurance also contrasts with the 1% federal pay raise President Donald Trump is proposing for most General Schedule employees in 2026.
OPM Associate Director of Healthcare and Insurance Shane Stevens noted that the premium increases aren’t as large as they were for 2025, which shows “some positive movement.”
“All that being said, we recognize that increasing health care expenses at this clip is not a sustainable path,” Stevens said in a blog post Thursday. “As we assess the overall health vs. expense equation across the US, we find an alarming trend.”
Stevens said OPM is looking to address the rising costs by cracking down on waste, fraud and abuse in the programs, as well as moving toward “a more proactive, preventive health-first orientation.”
“None of these initiatives of course will happen overnight,” Stevens said. “But, we are committed to improving the quality of life and quality of care for our members while also ensuring that healthcare remains accessible and affordable for those who work (or have worked) for the American people.”
OPM’s announcement Thursday comes about a month ahead of Open Season, the time of year that FEHB and PSHB enrollees can update their federal health insurance options for plan year 2026. This year’s Open Season runs from Nov. 10 to Dec. 8.
Any changes made during Open Season will take effect when plan year 2026 officially starts on Jan. 1. More information and resources are available on OPM’s website for both FEHB and PSHB participants.
If you would like to contact this reporter about recent changes in the federal government, please email drew.friedman@federalnewsnetwork.com or reach out on Signal at drewfriedman.11
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