FEHB Open Season opened this week and runs through December 8th. That means you only have a few weeks to review your current federal health benefits selections and make any changes for 2026.
Many federal employees treat their health insurance as a “file it and forget it” benefit. Many have been with the same plan for much or even all of their time in the Federal Employee Health Benefits (FEHB) program and pay little attention during open season, beyond a look at the new premium rates and at any major changes in coverage in their current plan.
In fact, according to the Office of Personnel Management (OPM), only about 5 percent of federal employees switch plans in any given year, even though all are eligible to change during annual open seasons.
While not everyone should change their plans, you could be leaving behind valuable savings. I would encourage you to take advantage of the open season by conducting a wellness and financial check-up for your healthcare coverage to ensure you’re getting the most from your benefits.
FEHB Open Season: Time to Enroll in or Change Your Health Benefits
Now through midnight on Monday, December 8th, you have time to review and select new options under the Employees Health Benefits program, the Federal Employees Dental and Vision Insurance Program, or to make use of a Federal Flexible Spending Account Program.
2026 will see fairly significant changes in federal benefits, with premium increases and new cost-sharing structures for some plans.
There are fewer plans available in 2026—there will be a total of 132 FEHB plan options available in 2026, with six plans being discontinued.
Will FEHB Premiums Increase in 2026?
Yes, for the second year running, federal employees and retirees are facing significant hikes in their FEHB premiums. OPM has announced that the average enrollee share of FEHB premiums will rise by 12.3%. This follows a 13.5% increase in 2025, marking a continued trend of escalating healthcare costs. The FEHB premium rates are calculated each year by OPM and are based on how federal employees and retirees used their health care plans during the previous year.
Postal Service Health Benefits (PSHB) Program
Last year was the inaugural year of the new Postal Service Health Benefits (PSHB) program. In 2025, one-fifth of FEHB enrollees were transferred to this new system, which included about 1.9 million USPS employees, annuitants, and their families.
This year, PSHB enrollees will have 75 plan options across 17 participating health carriers to choose from. These options include a mix of nationwide and region-specific health maintenance organization (HMO) and fee-for-service (FFS) plans, with specific choices depending on the postal worker's geographic location. Postal workers will see a slightly smaller increase in their share at 11.3%, with the total premium increase at 9%.
Medicare-eligible Postal annuitants and their family members will need to enroll in Medicare Part B to be able to access PSHB benefits. All PSHB benefits will align with FEHB, with the exception of prescription drug benefits.
Where Do I Start?
To help you get started, below are some questions to consider when reviewing your benefits and needs for healthcare coverage.
What are my and/or my family’s expected healthcare needs for 2026?
- Questions while reviewing your FEHB Program: Do I need surgery? Will my medication needs’ change? Does my plan provide a pharmacy mail order option for prescriptions?
- Questions while reviewing FEDVIP: Do I need routine dental care? Will I need a crown or root canal? Does my child need braces? Do I need glasses and/or contact lenses? Am I considering laser vision correction surgery?
- Questions while reviewing FSAFEDS: Do I have out-of-pocket expenses I need to consider, such as deductibles, copays, elder care, or over-the-counter drugs and medicines? Does my child need braces or use acne treatments?
What If I Do Nothing?
If you do nothing, your current coverage will automatically continue. If you are satisfied with your current FEHB plan, you do not need to take any action.
Don’t Neglect Savings Accounts
25% of government workers do not have a tax-free flexible savings account (FSA); however, almost every federal employee will have some type of out-of-pocket expense year over year. This can be used for over-the-counter medications and other uncovered costs, amounting to an average 30% in savings.
If this is important to you, don’t let your coverage lapse. You must re-enroll in an FSA each year.
Bottom Line
FEHB evolves over time, both due to new laws and decisions by OPM. Don’t make the mistake of thinking that your coverage next year will be just like this year.
Staying with what you already have is a decision too, and it may well be the best for you. But whatever you do, make sure your decision is made in a thoughtful way, with all the facts in hand.
If you’re ready to get serious about planning for your retirement from federal service, register to attend a workshop today!
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