Federal employees who get their health care coverage through the Federal Employees Health Benefits Program (FEHBP) will face a nearly 11% rise in their share of insurance premiums next year, the Office of Personnel Management announced last week.
The 10.9% average increase in workers’ premiums far outpaces inflation and eclipses the 9.3% overall increase in premiums for both enrollees and the government.
This marks the third consecutive year of double-digit premium increases in the FEHBP. Premiums rose 13.5% in 2025 and another 12.3% at the start of 2026.
Making matters worse, the White House has proposed freezing pay for most federal workers for the second year in a row. Most civilian federal workers got a meager 1% raise in January. Next year, the White House wants to give them nothing.
“Federal workers face a pay freeze while their health premiums climb nearly 11%. That is a pay cut. Private employers are giving raises to keep up. Our members are getting nothing,” said AFGE National President Everett Kelley.
Indeed, private-sector workers are doing far better than their peers in the federal government. Private employers are budgeting raises of about 3.5% this year, according to Mercer, and private-sector wages grew 3.1% over the past year, according to the Bureau of Labor Statistics.
Why are federal workers hit so hard by rising premiums? Part of the reason is that the government’s share of overall premiums is limited by law to about 72% of the average plan’s cost. Every dollar above that limit comes straight out of the worker’s paycheck.
OPM’s advice is to switch to a cheaper plan. In reality, switching plans can result in families losing trusted doctors who aren’t part of the new plan, driving an hour or more to find an in-network specialist, or paying thousands of dollars in surprise out-of-pocket bills because the new “cheaper” plan covers less than your previous coverage.
The better solution is for Congress to provide federal workers with a pay raise next year that helps them keep pace with rising costs, as well as increasing the government’s portion of insurance premiums, Kelley said.
“Congress must pass a real raise and make the government pay its fair share,” he said.
AFGE has joined more than 100 members of Congress in urging lawmakers to overturn Trump’s pay freeze and at least provide all federal employees with the same 3.8% pay raise going to law enforcement officers in 2027. Even better, Congress should pass the 4.1% pay raise called for under the Federal Adjustment of Incomes Rates (FAIR) Act.
In the meantime, members should take a hard look at their coverage during Open Season, which runs from Nov. 9 to Dec. 14.
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