Staying Healthy in 2024: What Federal and Postal Workers Need to Know About Upcoming Double-Digit Health Care Premium Increases

Federal employees and retirees will face a 12.3% increase in health insurance premiums starting in 2026. This marks the second year in a row of significant hikes. The government’s portion of the Federal Employees Health Benefits Program (FEHBP) will also rise, by an average of 9.2%. Overall, rates will increase by 10.2%.

In 2025, federal workers saw a 13.5% rise in their health insurance costs, following a 7.7% increase in 2024.

Here’s how the increased costs break down per paycheck:

• For “self only” plans, premiums will go up by about $15.43.
• “Self plus one” plans will see an increase of $34.21.
• Those with family coverage will pay an extra $38.81.

Postal Service employees, who switched to the new Postal Service Health Benefits Program (PSHBP) last fall, will see an 11.3% increase in premiums. In 2025, their premiums rose by 11.1%. On average, here’s what postal workers can expect to pay more:

• “Self only” plans will increase by $12.88.
• “Self plus one” plans will rise by $29.78.
• Family plans will jump by $32.46.

Dental premiums under the Federal Employees Dental and Vision Insurance Program will rise by 3.3%, while vision insurance will see a smaller increase of 0.5%.

Shane Stevens, an associate director for health care and insurance at the Office of Personnel Management (OPM), expressed hope that these premium trends might change, especially with potential reforms in prescription drug pricing. Stevens emphasized that while new medications can be expensive upfront, they have the potential to reduce overall long-term healthcare costs.

However, not everything is being addressed. The OPM’s recent updates have not commented on the administration’s decisions regarding gender-affirming care for federal employees. They also overlooked staffing challenges in IT, which could threaten the stability of the new health benefits program.

Bill Shackelford, president of the National Active and Retired Federal Employees Association, expressed concern. He believes these premium hikes, coupled with a proposed 1% pay increase and the ongoing government shutdown, make federal jobs less appealing. “Public service often comes with sacrifices, but these rising costs challenge our ability to attract and keep good talent,” he remarked.

It’s essential to keep an eye on how these changes will affect federal workers’ morale and recruitment efforts in the future. As premium and cost-of-living pressures increase, the commitment to public service is being tested like never before.

For more details, you can read more on the OPM blog.

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