Federal Workers Face 10.9% FEHB Premium Hike in 2027 as Trump Pushes Pay Freeze
Updated
Updated · FEDweek · Oct 1
Federal Workers Face 10.9% FEHB Premium Hike in 2027 as Trump Pushes Pay Freeze
3 articles · Updated · FEDweek · Oct 1
Summary
Federal employees and retirees in FEHB will pay 10.9% more on average for their share of 2027 premiums, while PSHB enrollees face an 8.2% increase.
OPM tied the increases to higher prices and use of inpatient, physician, outpatient and surgical care, plus growing behavioral-health demand and prescription drug spending led by GLP-1s and other specialty therapies.
Open Season runs from Nov. 9 to Dec. 14, with new rules requiring proof for added family members, mandatory behavioral-therapy participation for anti-obesity drug coverage, and automatic reassignment for members in 9 closing FEHB plans and 1 closing PSHB plan.
AFGE and NTEU said the premium jump would amount to an effective pay cut because Trump has proposed a 3.8% raise only for law enforcement while freezing pay for most other federal workers in 2027.
For 2027, FEHB will offer 118 plan options from 45 carriers and PSHB 65 from 17; changes chosen during Open Season take effect in January.
If the government still pays most FEHB costs, why are federal employees and retirees feeling such a sharp squeeze from yet another premium increase?
With Open Season nearing, which FEHB or PSHB plans may actually save federal workers money once premiums, deductibles, drugs, and provider networks are compared?
Why are federal health premiums still rising in 2027 even as OPM says increases are slowing—and how much are GLP-1 drugs driving the trend?