Every year, the Federal Employees Health Benefits program changes. Premiums move, coverage shifts, and a few plans drop out entirely. For 2027, OPM says nine FEHB plan options won’t be offered at all. If you’re enrolled in one of them and you do nothing during Open Season, OPM will choose your new plan for you.
In my work as a financial planner for federal employees, I’ve noticed that most feds never touch their health plan once they pick it. That usually works out fine. This year, for some of you, it won’t. Here’s what’s changing and what to do about it.
The nine plans leaving FEHB
According to OPM’s 2027 Open Season Highlights, these FEHB options will not be available next year:
- Independent Health Standard and Independent Health HDHP (Western New York)
- Blue Care Network of Michigan Southeast High
- UnitedHealthcare Choice Primary West High and Choice Plus Primary West High (Arizona, Nevada, Oregon and Washington)
- Health Net of California Northern High
- Health Net of California Southern Basic, Standard and High
None of the big nationwide plans most feds use, like the Blue Cross and Blue Shield Service Benefit Plan, are on the list. But if you’re in one of these regional plans, you need to act.
Plans that are shrinking or merging
Some plans aren’t leaving entirely. They’re pulling back or folding options together:
- UnitedHealthcare’s HDHP is ending in 12 states, including the Phoenix and Tucson areas.
- Presbyterian Health Plan in New Mexico is dropping 28 counties. Because it keeps its enrollment codes, enrollees in those counties who don’t switch will have only emergency coverage where they live.
- The Mail Handlers Benefit Plan is ending its Value and Consumer options. Members move to MHBP Standard, which costs a lot more.
- UnitedHealthcare Choice Plus is merging two enrollment codes into one.
What happens if you do nothing
If your FEHB plan is leaving and you don’t make an election, OPM enrolls you in Compass Rose Standard, its designated default plan. That’s not a terrible outcome. Its premium is lower than every one of the leaving plans charged in 2026.
But it’s a nationwide EPO, which means no out-of-network coverage. It isn’t a high-deductible plan, so you can’t keep contributing to an HSA. And the self-only out-of-pocket maximum is $9,000. If your doctors aren’t in the Compass Rose network, a “free” default can get expensive fast.
The dates that matter
- November 9: Open Season begins.
- December 14: Last day to make a change.
- January 10, 2027: New coverage starts for most employees. For retirees, it starts January 1.
The 2027 plan brochures and OPM’s plan comparison tool come out in early November. That’s when you can see exactly what each plan covers next year.
Why everyone should check, not just these nine
Even if your plan isn’t going anywhere, it is changing. Average enrollee premiums are up 10.9% for 2027, and coverage rules change every year.
I had a client who had shoulder surgery one year and paid almost nothing out of pocket. The next year they had the same surgery on the other shoulder, same doctor, same procedure. This time the bill was about $15,000. Their plan had changed, and they hadn’t noticed.
That’s the risk of setting it and forgetting it.
What I’d do this Open Season
- Find your enrollment code on your paystub or annuity statement and check whether it’s on the list.
- Read the changes for your current plan when the 2027 brochures come out.
- Compare a few plans on the full cost: premium, deductible, out-of-pocket maximum and network.
- Check your doctors and prescriptions in any plan you’re considering.
- Make your election by December 14.
Final thoughts
Your health plan is one of the most valuable benefits you have as a federal employee, and it follows you into retirement. Don’t let a default decide it for you. Take an hour this Open Season and make sure your plan still fits.
If you’re a federal employee within 5 years of retirement and want a plan built around your FERS benefits, book a free call to see if we’re a fit.
Dallen Haws, CFP®, is the founder of Haws Federal Advisors, which helps federal employees plan their retirement. This article is educational only and is not tax, investment or legal advice. HawsFederalAdvisors.com