Federal Benefits Open Season Highlights for the 2026 Plan Year

The Federal Employees Health Benefits (FEHB) program, which includes the Postal Service Health Benefits (PSHB) program, provides health insurance benefits to approximately 8.2 million federal employees, U.S. Postal Service employees, certain Tribal employees, and their eligible family members. The Federal Benefits Open Season for Plan Year 2026 runs from November 10 through December 8, 2025. This column discusses what employees and retirees should know about changes starting January 1,2026 in the FEHB program, the PSHB program, the Federal Employees Dental and Vision insurance program (FEDVIP) (employees and retirees) and the Federal Flexible Spending Account Program (FSAFEDS) (employees only).

Health, dental and vision insurance enrollment will automatically continue from year to year unless an employee or retiree, enrolled in any health insurance, dental insurance and/or vision plan, chooses to make a change during the Open Season. However, employees enrolled in FSAFEDS, either in a healthcare flexible spending account (HCFSA) and/or a dependent care flexible spending account (DCFSA), are required to re-enroll each year in order to continue participation in the next plan year.

Premium Rate and Cost Trends for 2026

The following is a summary of premium rate and cost trends for plan year 2026:

FEHB:

• Overall average premium increase: 10.2 percent, down from 11.2 percent in 2025.
• Average employee and retiree share premium increase: 12.3 percent, down from 13.5 percent in 2025, and
• Government contribution premium increase: 9.2 percent, down from 10.1 percent in 2025.

PSHB:

• Overall average premium increase: 9.0 percent, up from 6.9 percent in 2025.
• Average employee and retiree share premium increase: 11.3 percent, up from 11.1 percent in 2025, and
• Government contribution premium increase: 8.0 percent, up from 5.1 percent in 2025.

These health insurance premiums are a result of: (1) Rising costs from health care providers and suppliers; (2) Greater utilizing of prescription drugs, particularly GLP-1 medications and specialty drugs; and (3) Higher behavioral health spending as access and utilization continue to expand.

FEDVIP:

• Overall average dental premium increase: 3.35 percent, up from 2.97 percent in 2025. and
• Overall average vision premium increase; 0.47 percent, down from 0.87 percent in 2025.

Note that employees and retirees who are enrolled in FEDVIP, either in a dental plan and/or in a vision plan, pay the full cost of the premium with no federal government premium cost contribution.

Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer –

Key 2026 FEHB, PSHB, FEDVIP and FSAFEDS Changes

FEHB and PSHB (Health Insurance):

• Removed coverage for medical or surgical modification of sex traits, including gender transition procedures for all ages.
• Required coverage for FDA-approved HIV Prep drugs and related monitoring, with no cost sharing.
• Behavioral health access continues to expand; carriers must broaden networks and allow out-of-network care when waiting times are excessive.
• Opioid safety: carriers must continue to provide at least one opioid rescue agent, at no cost, with expanded education on usage, or
• Anti-obesity care: carriers must continue to cover FDA-approved medications, including at least one GLP-1 and two oral options, plus behavioral and nutritional programs.

FEDVIP (Dental Insurance and Vision Insurance):

• • Dental insurance carriers must now offer two routine exams and one emergency exam per year.
  • Several carriers have added preventive benefits for children under three and pregnancy wellness coverage, or
  • One vision insurance carrier expanded to 100 percent diabetic coverage in-network, while another added coverage for orthoptic training for eye-movement disorders.

FSAFEDS (Flexible Spending Accounts including HCFSA and DCFSA):

• Allows eligible federal employees and eligible uniformed service members to save pre-tax funds for qualified health care and dependent care expenses.
• Program is sponsored by OPM and governed by IRS rules.
• HCFSA contributions and DCFSA contributions are deducted from an employee’s gross salary before all taxes, including federal and state income taxes, and Social Security (FICA) and Medicare Part A (Hospital Insurance Tax) payroll taxes.
• Maximum contributions to HCFSA during 2026 increases to $3,400, an increase from $3,300 during 2025, and
• Maximum contributions to DCFSA during 2026 increases to $7,500, an increase from $5,000 during 2025.

Plan Offerings for 2026

Under both the FEHB and PSHB programs, participants can choose from a broad variety of plan types including – Fee-for-Service plans, Health Maintenance Organizations, Consumer-Driven Health Plans and High-Deductible Health Plans.

For 2026, OPM will offer:

• 47 insurance carriers and 132 plan options in FEHB.
• 17 insurance carriers and 75 plan options in PSHB, and
• Fewer than a dozen dental and vision insurance carriers through FEDVIP.

There are six FEHB plans (eight options) that will not be available in 2026: (1) NALC Health Benefit Plan (CDHP); (2) NALC Health Benefit Plan Standard; (3) Health Alliance HMO Standard; (4) AV Med Health Plan HDHP; (5) AV MED Health Plan Standard; (6) Independent Health High; (7) Blue Care Network of Michigan High; and (8) Priority Health High.

There is one PSHB plan (two options) that will not be available in 2026: (1) GEHA Indemnity Benefit Plan Elevate Plus; and (2) GEHA Indemnity Benefit Plan Elevate.

Participants in those plans must select a new plan during Open Season, or they will be automatically transitioned into a designated default plan as presented here:

• FEHB default plan is GEHA Benefit Plan High Option.
• PSHB default plan is Blue Cross and Blue Shield Service Benefit Plan – FEP Blue Focus, and
• FEDVIP’s Health Partners Dental Plan will no longer be offered. Enrollees must select a new dental plan in order to maintain coverage in the 2026 plan year.

Ed Zurndorfer, EA, ATA, CFP®, CLU®, ChFC®, CEBS®, ChFEBC℠: Federal Employee Benefits Expert

A former career Federal employee, Ed has published a staggering 1,200+ separate articles on Federal Benefits and Retirement!
Just “Google” his name, and you are likely to find a plethora of sites that contain his writings. Drawn to its mission to reach, teach
and serve Feds, Serving Those Who Serve is the only financial planning practice with which Ed has chosen to affiliate in over
20 years teaching. In addition to conducting Federal Benefits seminars for Serving Those Who Serve, you can find Ed’s
writings here on our blog in the FedZone, and on Fed-Soup, MyFederalRetirement, FederalNews Radio and NITP.

He is a member of the Maryland Society of Accountants, the National Association of Enrolled Agents, the International Society of Certified Employee Benefits Specialists, the Financial Planning Association, the National Association of Health Underwriters,
and the Society of Financial Service Professionals. Since 1999, Ed has taught many thousands of Federal employees about
their benefits, in person and at Federal agencies all over the country. Ed is a true national treasure.

Edward A. Zurndorfer is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Life Underwriter, Chartered Financial Consultant, Chartered Federal Employee Benefits Consultant, Certified Employees Benefits Specialist and IRS Enrolled Agent in Silver Spring, MD. Tax planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, and EZ Federal Benefits Seminars, located at 833 Bromley Street – Suite A, Silver Spring, MD 20902-3019 and telephone number 301-681-1652. Raymond James is not affiliated with and does not endorse the opinions or services of Edward A. Zurndorfer or EZ Accounting and Financial Services. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.