Federal Health Premiums Rise 10.9% for 2027 Amid Pay Freeze Debate
Federal employees and retirees will face an average 10.9% increase in health insurance premiums for 2027, marking the third consecutive year of double-digit hikes. While the rate of increase has slowed compared to 2026, the cumulative cost burden remains significant. The Office of Personnel Management (OPM) attributes the rise to higher costs for surgical services, prescription drugs, and behavioral health. Unions argue that these increases, combined with a proposed 2027 pay freeze, effectively reduce take-home pay and hinder recruitment. Open Season for plan selection runs from November 9 to December 14, 2026.












