Federal Employees Face Nearly 11% Health Premium Increase in 2027

Federal employees are heading into 2027 facing another increase in the cost of health care along with continued uncertainty surrounding their pay.

The Office of Personnel Management (OPM) has released 2027 Federal Employees Health Benefits (FEHB) rates. Federal employees and annuitants will see their share of premiums rise by nearly 11% on average next year, though the actual change will vary by plan and enrollment type.

The increase follows a 12.3% average increase in the enrollee share for 2026.

At the same time, federal employees are facing the prospect of no across-the-board pay increase in 2027 as lawmakers and federal employee unions continue efforts to secure a pay adjustment.

For federal workers and their families, these are not just numbers.

Higher health insurance premiums affect take-home pay. Decisions about federal pay determine whether wages keep pace with rising costs. Decisions made in Washington can also affect workplace rights, collective bargaining, staffing, retirement and the benefits federal employees have earned.

Elections Have Consequences for the Federal Workforce

Many of the policies that shape the federal workplace are influenced by decisions made by Congress and the administration. That makes staying informed and participating in the democratic process particularly important for federal employees.

The 2026 midterm elections will determine all 435 seats in the U.S. House of Representatives and approximately one-third of the U.S. Senate. Those elected will have a role in shaping legislation, federal spending and policies that can directly affect the federal workforce.

As voters prepare for the November elections, federal employees should understand the issues affecting their workplaces, their benefits and their families.

Take the time to learn where candidates stand on issues that matter to you and the federal workforce. Stay informed about federal pay, health care, retirement, collective bargaining, staffing and workplace protections. Consider how proposed policies could affect you, your family and your career.

Voting is a personal decision, but being informed gives you the opportunity to make your own voice heard.

NAGE will continue to advocate for fair pay, affordable benefits, strong workplace protections and a federal workforce that is respected for the essential services it provides to the American people.

As costs rise, NAGE will continue advocating for fair pay and affordable benefits for federal employees.