The cost of health insurance premiums for federal employees and retirees is set to rise significantly in 2026. This marks a continuation of the trend seen over the past two years, with an average increase of 12.3% anticipated for health insurance premiums.
2026 Premium Increases for Federal Employees
The Federal Employees Health Benefits Program (FEHBP) will see the government’s contribution rise by an average of 9.2%. Consequently, the overall premium increase will average 10.2%. In 2025, federal workers faced a hefty 13.5% rise, compared to a milder 7.7% in 2024.
Impacts of Rising Premiums
For employees with different coverage plans, the increases vary:
- Self Only Plans: Additional $15.43 per biweekly paycheck.
- Self Plus One Plans: Additional $34.21 per paycheck.
- Family Coverage: Additional $38.81 per paycheck.
Meanwhile, those enrolled in the new Postal Service Health Benefits Program will experience a measured increase of 11.3% in their premiums, up slightly from last year’s 11.1% hike. The government share for these premiums will increase by 8.0% on average.
Postal Employees’ Premium Adjustments
For postal workers, the premium increases are also significant:
- Self Only Plans: Additional $12.88 per biweekly paycheck.
- Self Plus One Plans: Additional $29.78 per paycheck.
- Family Coverage: Additional $32.46 per paycheck.
Additionally, the Federal Employees Dental and Vision Insurance Program will see a 3.3% average increase in dental coverage, while vision premiums will rise by 0.5%.
Government Outlook on Health Costs
Shane Stevens, Director of Health Care and Insurance at the Office of Personnel Management (OPM), expressed hope that these costs might stabilize. He referenced a potential initiative by the Trump administration to reduce prescription drug prices, which he believes could ultimately lower costs for health insurance plans.
Concerns Raised by Employees
However, concerns persist regarding the broader implications of these premium hikes amid ongoing governmental challenges. Bill Shackelford, President of the National Active and Retired Federal Employees Association, stated that these increases undermine the attractiveness of federal jobs. He noted the compounded effects of a possible government shutdown, insufficient pay raises, and rising workloads.
The cumulative pressure from increasing costs and unfavorable working conditions may hinder efforts to recruit and retain essential staff. Shackelford emphasized that while many choose public service for its noble calling, a reasonable salary to meet living expenses remains crucial.
The annual Open Season for enrollment changes in FEHBP and Postal Service Health Benefits Program will take place from November 10 to December 8, providing an opportunity for employees to adjust their coverage in light of these forthcoming hikes.
