Your FEHB premium is going up again. The average enrollee share is rising about 10.9% for 2027, the third double-digit increase in a row. Open Season is your one chance each year to do something about it.
In my work as a financial planner for federal employees, I see the same pattern every fall: people grumble about the increase, then leave their plan exactly where it is. Doing nothing is a choice too, and it’s usually the expensive one.
Open Season runs November 9 through December 14, 2026. Any change you make takes effect the first pay period of January 2027. Here’s the six-step playbook I’d use.
Step 1: Is Your Plan Changing or Leaving?
Start here, because it determines everything else. Several FEHB plans are being discontinued for 2027, and others are changing their benefits, networks or service areas. Pull up your plan’s 2027 brochure and check OPM’s plan comparison tool. Don’t assume next year looks like this year.
Step 2: Compare Total Cost, Not Just Premium
The premium is the number everyone looks at, but it’s only part of the picture. A better way to compare plans:
- Premium × 12 months (or per pay period × 26 if you’re still working)
- Plus expected out-of-pocket costs: the deductibles, copays and coinsurance you realistically expect to use
- Then check the worst case: the out-of-pocket maximum
A plan with a lower premium can easily cost more over a year if you see doctors regularly or take ongoing prescriptions. And a plan with a higher premium can be the cheaper choice if it caps your exposure in a bad year.
Step 3: Check Your Doctors and Prescriptions
The cheapest plan isn’t a deal if your doctor isn’t in its network or your medication isn’t on its formulary. Before you switch, confirm that your doctors are in network for 2027 and that your prescriptions are covered, and at what tier. Formularies change from year to year, so check this even if you’re staying put.
Step 4: Pick the Right Enrollment Type
FEHB offers three enrollment types: Self Only, Self Plus One, and Self and Family. Most people assume Self Plus One is always cheaper than Self and Family for a couple, but that isn’t always true. Some plans price Self Plus One higher than Self and Family. If you’re covering two people, compare both.
Step 5: Run the Numbers on an HDHP + HSA
If you’re relatively healthy, a high-deductible health plan paired with a Health Savings Account is worth a look. You typically get a lower premium, the plan contributes to your HSA, and the HSA itself offers a rare tax advantage: money goes in pre-tax, grows tax-free, and comes out tax-free for qualified medical expenses. It’s not the right fit for everyone, especially if you expect significant medical costs next year, but it deserves a spot in your comparison.
Step 6: Don’t Forget the Extras
Two things people miss every year:
- FSAFEDS must be re-elected every year. Your flexible spending account doesn’t carry your election forward. If you want one in 2027, you have to enroll again during Open Season.
- FEDVIP dental and vision are separate from FEHB. Review those plans too, and remember that some FEHB plans already include some dental or vision benefits.
A Note for Retirees
If you’re retired and carrying FEHB into retirement, you can still change plans every Open Season. You’re not locked into the plan you had on your last day of work.
If you’re 65 or older and eligible for Medicare, the comparison changes. Look closely at how each plan coordinates with Medicare Parts A and B, and how its prescription drug coverage works. Some plans offer meaningful extras for members enrolled in Medicare, so the right plan for you at 66 may not be the right plan you had at 60.
Final Thoughts
There’s no single best FEHB plan for everyone. The right plan depends on your health, your doctors, your prescriptions and who you’re covering. But the process for finding it is the same every year: check whether your plan is changing, compare total cost, confirm your doctors and drugs, pick the right enrollment type, consider an HDHP, and re-elect FSAFEDS. Put it on your calendar for November 9 and give it an hour.
If you’re a federal employee within 12 months of retirement, or already retired, with $1 million or more invested, book a free 15-minute Fit Call to see if we can help: https://app.hawsfederaladvisors.com/whatservicemakessense
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