Health Premiums to Increase for Federal Employees in 2026

Health Insurance Premiums Set to Rise Again for Federal Employees

Health insurance premiums for federal employees and their beneficiaries are expected to increase next year. This marks the second consecutive year of double-digit growth.

According to the Office of Personnel Management (OPM), participants in the Federal Employee Health Benefits (FEHB) program will see an average premium hike of 12.3% starting in January 2026, which translates to about $26.40 more per paycheck. This rise is slightly lower than the previous year’s 13.5% increase, which was the highest in over a decade.

Breaking it down, those on “self-only” plans will pay an additional $15.43 per salary, while individuals with “self-plus-one” plans will see an increase of $34.21. Family plan holders will pay $38.81 more per paycheck.

For those enrolled in the Postal Service Health Benefits (PSHB) program, premiums will rise by an average of 11.3%, or roughly $21.51 per pay period. This is a small uptick from the previous year’s 11.1% increase.

Additionally, dental insurance premiums in the Federal Employees Dental and Vision Insurance Program will go up by an average of 3.3%, and vision premiums will rise by less than 1%.

The federal government’s share of FEHB premiums will increase by an average of 9.2%, contributing to an overall premium surge of 10.2%. Notably, the government typically covers about 75% of participants’ premiums.

In a blog post, Shane Stevens, OPM’s associate director of health care and insurance, acknowledged the ongoing challenges posed by rising health care costs, stating that maintaining this pace of increases is not sustainable.

Stevens also mentioned OPM’s plans to explore cost reductions moving forward, including establishing a better registrant verification process to minimize waste. Furthermore, the Trump administration is reportedly collaborating with pharmaceutical companies to find ways to cut costs and is advocating a shift from a “sick care” model to a “well care” approach.

Open Enrollment Season

This year’s open season for health insurance is expected to proceed normally, even as OPM’s health and insurance division grapples with the loss of approximately 80 employees due to retirements and other factors.