Insurance costs are rising sharply once again for 2026 — and that is certainly an important factor for enrollees in the Federal Employees Health Benefits program to consider when making any changes during this fall’s Open Season.

But David Yoder, senior vice president of BlueCross BlueShield’s Federal Employee Program, said looking at health insurance premiums alone, and not seeing the bigger cost picture, could put FEHB participants at a disadvantage when deciding on a health plan.

“A low premium may look good on paper, but then you may have much higher out-of-pocket costs that you have to incur,” Yoder said during Federal News Network’s 2026 Open Season Exchange.

Estimate your true out-of-pocket health costs

Out-of-pocket costs can come from a number of health care needs — such as doctor’s office visits, co-pays for prescription drugs, emergency room visits or telemedicine appointments. And those are all health care options that many enrollees may use on a frequent basis.

“By the time you incur all those costs, plus the premium, you may have been able to go into a different product that may have had a slightly higher premium, but a little bit lower out-of-pocket cost,” Yoder explained.

At the same time, since BCBS is a nonprofit, Yoder noted that the carrier has a slightly different method for calculating costs — something may be especially important to consider in a year where participants are facing another major spike in health premiums.

But according to Yoder, 95 cents of every dollar from BCBS enrollees goes back toward paying for medical costs.

“We try to be very judicious about how we set those rates because we want to make sure we have affordable products,” Yoder said. “We want to make sure that our members are able to access the products we have.”

Looking beyond health care costs

Going beyond cost, Yoder encouraged participants to weigh other key factors when deciding on their health care options — most notably, by comparing provider networks, as well as looking at the drug benefits that are included in various plan options.

“You want to make sure that you understand, if you’re taking a product, that your product is covered,” Yoder said. “There may be alternatives that are covered that may be just as efficacious for you … And they may be covered at a lower cost share overall.”

Despite a year of major uncertainty for federal employees, Yoder said he hopes that health care can remain an area where federal insurance enrollees will feel steadier and will have one less thing to have to worry about.

“In the midst of all these changes, the one thing that they really need and depend on is their health care. That’s the one constant they may have,” Yoder said. “We continue to provide those services no matter what happens moving forward. We try to make sure members are reassured that we’re going to be here for them.”

BlueCross BlueShield offers various health plan options in the federal insurance space. The choices range from coverage for those with minimal health needs, to those seeking broader benefits or better provider flexibility.

“It is our mission to be able to bring the best benefits we possibly can to federal employees, and to make sure that they can get the coverage they need at an affordable price point,” Yoder said. “We offer multiple price point benefits. We’ve really got something for everybody.”

BCBS additionally offers tools and resources to its members, so they can better understand and track changes to their health care costs year to year, as well as consider the key differences between various plan options and what may be most pragmatic for each individual employee.

Discover more articles and videos now on our 2026 Open Season Exchange event page.

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