The Blue Cross and Blue Shield Federal Employee Program (FEP) offers several great coverage plans for federal employees, retirees, and their families.
FEP Blue Focus® is an ideal choice for individuals and families who mainly use their benefits for free preventive care and have minimal prescription needs.
What you’ll love about Focus:
Lowest premium to keep your costs down
$10 per visit for the first 10 primary and specialist visits for each person on your plan
Lowest copay for urgent care centers
Open Season starts November 10, 2025, and ends December 8. Explore how FEP Blue Focus® fits your needs.
Life is busy. Which is why the Blue Cross and Blue Shield Federal Employee Program (FEP) offers benefits designed for your convenience.
Our Nurse Line is on call 24/7
Get expert health advice from qualified registered nurses anytime, at no cost.
Telehealth visits at no cost to you
Connect with a doctor anytime by phone, video chat, or the Teladoc Health® app—for free.
Programs designed to help you feel your best
Take control of your health through any of FEP’s condition management programs. We offer personalized wellness support and resources to help you manage your weight, diabetes, or hypertension.
Open Season starts November 10, 2025, and ends December 8. Learn more about FEP’s convenient, anytime-anywhere benefits.
There’s a lot to consider when choosing your next health plan this Open Season. The Blue Cross and Blue Shield Federal Employee Program (FEP) offers benefits that reward you for completing activities that support your health.
Get $150 for completing your annual physical
Use it to pay for qualified and specific non-qualified medical expenses, eyewear, medications and more.
Earn $120 for completing Daily Habits
From eating better to managing stress, FEP Blue Basic® and FEP Blue Standard® members can get rewarded for completing three eligible goals in 2026.
Enjoy access to Blue365®
Treat yourself and your health through our exclusive discount program with hundreds of ways to save on everything from gym memberships and fresh meal kits to travel.
Open Season starts November 10, 2025, and ends December 8. Learn more about FEP plans and how these wellness rewards can support your health this Open Season.
Eric White We’re coming close to the end of the year. It’s been a shaky end as usual, and you’ve got open season tackling in and everything like that. You know, tell me why this is the perfect time to be thinking about taxes next April.
Thiago Glieger I know, this is the topic nobody likes to think about, especially not early and before we have to, right? But smart federal employees are looking at their income year to date, and they’re looking at things like tax withholding. If there were any major changes this year, like a promotion or a bonus, or maybe your spouse retired, something like that, your withholding might be off. And then there’s a variety of other things too, that you’ll want to incorporate, like making sure that you don’t wanna incorporate some kind of charitable giving. A lot of people do that at the end of the year. There’s RMDs that come in. So there’s a lot of little things that, if we start paying attention to now, all of it affects taxes. So we wanna get ahead of those things.
Eric White Yeah, so let’s get into it rather than actually saying let’s get ahead of it. How do you actually go about doing that?
Thiago Glieger Yeah, so one of the biggest things we tell federal employees to be aware of, Eric, is to make sure that they are actually maximizing their TSP contributions, if they can afford to do so. Obviously, this is an interesting time to be doing that, given that, you know, people aren’t being paid, but the idea of maxing out the TSP helps you to save on taxes if you’re using pre-tax contributions. So before the end of the year, you want to try and get as much as you can in there. So the contribution for 2025, the limit is $23,000. If you are over 50, it’s $7,500 additionally. So if you’re behind on contributions and you actually want to get all of those paychecks in there, you can actually adjust some pay periods so that you do a little bit more and get yourself caught up. Okay, now for 2026, this is where some of the big changes are going to come to the TSP contributions. First, we’re going to start getting the normal inflation adjustment for the contribution limits. The amount that you can contribute under 50 goes up by a thousand and then catch-up goes up by another 500. But the biggest change is how that catch-up contribution is going to happen. So for people who are over 50 and they’re going to be earning $145,000 or more as a federal salary, they can no longer do that pre-tax deduction. What does that mean? That means you’re going have to pay taxes on all of that catch-up contribution. So. This is a pretty big thing as people start thinking about taxes for next year. Your taxable income could actually be going up and you might actually owe a little bit more in tax.
Eric White Yeah. Are there any changes coming down the pipeline that you’re hearing regarding TSP contributions? Are those amounts going to go up again in the backdrop of that? This is a very strange time to be talking about this.
Thiago Glieger Yeah, Eric, each year we see a little bit of an inflation adjustment where the … IRS actually will come out and say, hey, everyone participating in a 401k type of plan like the T.S.P. Now you can put a little more each year. It Just helps you stay on top of saving a little but more. And so we’re definitely going to see that. Of course, for anyone over 50, you have that additional catch up contribution. And then for people who are a little older than that, there’s the special catch up contribution as well. So, lots of ways to get more money in the Thrift Savings Plan, and again, if you’re already thinking about taxes for next year, you want to consider whether or not you’re going to be forced to do Roth contributions for the catch-up, because that means you have to pay the tax up front, and so that’s a big change both in the amounts and in how you’re contributing that’s coming to the TSP next year.
Eric White I’m talking with Thiago Glieger, private wealth advisor for RMG advisors. On those TSP contributions, we’ll get a little bit more into the investment side of things, but during this time that we had mentioned, a lot of folks aren’t getting their paychecks regularly. The idea of borrowing against your TSP plan is now a plan that most folks are going to have to result to. What can you tell us about what they should be on the lookout for if it comes down to that.
Thiago Glieger Yeah, Eric, this is just such a hard time for federal employees and it’s really unfortunate that we are down to these last little solutions of trying to borrow against ourselves. But the idea of borrowing from ourselves instead of borrowing another type of creditor like a bank or a financial institution means that you’re going to be paying yourself the interest if you borrow from the TSP and it forces you as soon as you start getting paid again. It forces you to start repaying yourself back each paycheck. So it really allows you to be very disciplined and not overspending, taking the money and then not ever paying it back. The reason that that’s very nice is because it gives you access to liquidity immediately. And if you have to put food on the table, you have make a bill payment, you have pay your mortgage, that’s a really good way to get cash very quickly — which the TSP is still functioning. A lot of people think that the government is shut down, people can’t access the TSP. That’s not true. You can actually go in there and get that. There’s different types of TSP loans. You can get up to $50,000 for a GenPurpose one. And you can see the information. The TSP has a really nice page that talks about the loans and how they work and how much you can get. If you’ve tapped it before, then obviously there’s going to be some limitations there. But if you’re in a dire situation and you’re looking at, you know, not being able to make a mortgage payment or having to put some huge bill on a credit card and possibly start down this rabbit hole of credit card debt, the TSP loan can be a really good option for you.
Eric White Let’s look at farther down the future here. As far as capital gains and avoiding the tax bill that can sometimes come when you’re looking for liquidity fast and easy from selling some of your holdings, what is it that people should keep in mind if they go that route?
Thiago Glieger The big thing, Eric, with capital gains is that people who own non-retirement accounts, so brokerage accounts, right — they are going to be subject to any sort of capital gains taxes. And there’s a lot of things that you can do to help reduce those taxes, one of which is called tax-loss harvesting. So this is something that as the markets go up and down, you can take use of that volatility and create tax savings for yourself throughout the year. So it is something you want to do year round, but you can always look at this time of the year and go back and see is there anything in my portfolio that I could sell that could help me to create some tax savings. If you have additional tax loss beyond any of the gain that you’re realizing you can actually offset up to $3,000 of your salary in these capital losses as well. So if you think about salary income, that’s the highest form of tax that we have. And if you can reduce $3,000 worth of that salary for tax purposes, then you’re actually saving several hundreds of dollars in taxes simply by doing a very simple strategy in your portfolio.
Eric White And the length of holding those positions also has an effect on that. Do I have that correct?
Thiago Glieger That’s right. If you’re going to be realizing gains or losses, depending on how long you held it, the IRS treats that differently. So the key number we want to be aware of is 12 months or more. Anything that’s 12 months is considered long-term, right? And anything that’s less than 12 months, is considered short-term. The only other time horizon thing that you want to be aware of too, Eric — that I think you were alluding to — is this idea of a wash sale. So if you’re creating tax savings from a loss in your investments, you gotta be really careful about not to rebuy the same stock within a period of time, not have sold it prior to the sale. There’s some rules around there that you gotta be real careful [about].
Eric White All right, and this time of year, and a lot of people going through some hardship right now. Another way is through some charitable giving. How can you — well, you know, it sounds bad to look out for yourself when you’re trying to be helpful — but what can you do to maximize really the way that it can benefit you as well when making a charitable donation.
Thiago Glieger The best way that you can give philanthropically or to any charity is if it benefits both them and you. That’s a situation where everybody wins and who doesn’t like that? There’s a couple of really smart ways that people will do these kind of charity and donating. The first is if someone is looking at their RMDs. So this time of the year, we have required minimum distributions that are gonna be applicable to anybody over a certain age. So typically that’s 73 for most people these days. And the good news is the TSP is gonna take that money out of your thrift savings account automatically. But the bad news is you pay taxes on that whole distribution. Wouldn’t it be nice if you could instead, if you are a regular contributor to a charity of sorts, maybe give some of that RMD to the charity directly. So that’s a strategy that people could do. Unfortunately, you can’t do that within the TSP, but you can do that with an IRA. But you don’t pay the taxes on it, the charity doesn’t pay taxes on, and you satisfy your RMD all at the same time. So that’s a really helpful tip that a lot of federal employees have been able to do. Key age for that is 70 and a half, okay? So this is not something that’s available to everybody. But frankly, if you’re coming up on RMDs and worried about that, you’re gonna be probably a little older anyway, so that’s big one.
Eric White Anything else that people should keep in mind as the year ends out here and looking towards next year and what is probably going to be another up and down one?
Thiago Glieger Yeah, we’ve got open season coming up here in about a month or so, Eric, right? And so I think that it would be smart for federal employees to look at some of the tools within your benefits package, because those can help save taxes as well. So, for example, if you’re not using the FSA, which is a flexible spending account, you need to go to FSA feds and really consider using that tool. You can put a few thousand dollars in it. I want to say something like $2,000 or $3,000 as a family every single year. And listen, everybody has some kind of medical expense. Even if you’re going to the doctor just once a year, you can use that money. It’s fully tax deductible. And then if you use that money for a qualified medical expense, you don’t pay any taxes on that money either. So it’s like getting tax-free healthcare services. And the important detail with the FSA is that you are going to lose the bulk of it if you don’t use it. So you always wanna make sure maybe you don’t contribute too much of it into it. Or you can use the money for all kinds of interesting qualified expenses. I’ll give you an example. Some of our clients have purchased — they had a couple of thousand bucks still left in an FSA, they were gonna lose it — they purchased a defibrillator, an AED for their household using those funds and they got it completely tax-free. You can buy Band-Aids, you can buy aspirin, all kinds other stuff, and you can see what’s qualified and what’s not online. So that’s a really nice benefit to look at for taxes at yearr end.
Eric White I think I’d buy one of those CPR dummies they look like they’re fun to play with a little
Data analytics dashboard display. Business and financial investment. HUD infographic of financial. Information reports of business strategy for investment. 3d rendering
Whenever there is the possibility of a government shutdown, FedChoice Federal Credit Union immediately jumps into action and starts planning direct support for federal employees.
The Lanham, Maryland–based financial institution, which serves more than 25,000 members and manages $447 million in assets, processed assistance for hundreds of federal workers after the shutdown began. The FedChoice strategy focused on addressing the full impact of the crisis: the mind, body, wallet and health of their members.
Between Oct. 1 and Nov. 5, FedChoice welcomed over 400 new members seeking financial support and allowed nearly 350 members to skip consumer loan payments, preserving nearly $150,000 in immediate cash flow for affected households. This $2.4 million in direct financial aid was critical when at least 670,000 federal employees were furloughed, while roughly 2 million continued working without pay, FedChoice President and CEO Brett Noll said.
Addressing the shutdown’s full economic impact
FedChoice wants consumers to know the shutdown affects everyone. Experts estimate the economic impact of this shutdown ranged from $7 billion to $16 billion per week of lost U.S. revenue. The drastic slowdown affects every American because there is less money fueling the economy, creating an anchor on access to lending and competitive rates.
“We know that our federal workers aren’t back on their feet and doing fine just because congress voted to end the shutdown,” Noll said. “We remain committed to helping federal employees return to financial normalcy as quickly as possible. Regardless of there being a shutdown or not, we exist to improve the financial well-being of our members, most of whom are federal employees.”
FedChoice has designed products and services to directly address these issues head on and advance its mission to serve. FedChoice’s FedAssist Program is tailored to put money into federal workers’ pockets at competitive market rates to help them move into their first or next home, purchase or refinance cars and trucks, and more, said Christine Wright, vice president of marketing at FedChoice. The program even offers support like skip-a-pay loan options.
“What is a travel inconvenience for Americans across the country is devastating to our family of federal workers,” Wright pointed out. “The people who are impacted aren’t just a headline on the news. One of our members visiting a branch said, ‘Look, I’m trying to figure out if I need to go to food banks? I’m worried about the gas in my car.’ And he just started hugging people and thanking us. These are the times we see how impactful credit unions can be.”
Providing for needs beyond financial well-being
Since the shutdown started, FedChoice’s efforts have gone far beyond offering traditional financial services, recognizing that health encompasses more than just insurance coverage. It also includes food security, mental well-being and physical resilience, said Alexis Jones, founder and CEO of Transcend Clinical Services.
In early November, the credit union organized a food truck event at its headquarters, serving free meals to federal employees while also connecting them with mental health professionals from Transcend Clinical Services and certified financial planners.
The emotional and financial toll of a shutdown is significant. It’s critical for anyone affected to protect their well-being through resilience.
FedChoice offered three suggestions:
Control the controllables: Focus on your routines, mindset and responses — what you can control, not what you can’t.
Get outside and move your body: Stepping outside and moving can reset your nervous system and reduce anxiety.
Be intentional about what you allow in: Protect your peace by choosing inputs that nourish your spirit over noise.
“You may not be able to control the storm, but you can always control how you care for yourself in it,” Jones said.
Participants in both the Federal Employees Health Benefits and Postal Service Health Benefits programs may have more incentive than usual to take advantage of Open Season, as premium costs continue to surge in yet another year of double-digit percentage increases.
For 2026, FEHB premiums are rising by an average of 12.3% for enrollees, while those in PSHB will see their premium costs rise by an average of 11.3%. It comes after premiums increased by about 13.5% and 11.1% for FEHB and PSHB respectively in 2025.
Shane Stevens, associate director of healthcare and insurance at the Office of Personnel Management, acknowledged what he said was a “frustrating environment” for insurance enrollees who are facing continually rising premium costs.
“Health care costs have become somewhat unsustainable,” Stevens said during Federal News Network’s 2026 Open Season Exchange. “I’ve watched employees have to get second jobs to get insurance and cover it. I’ve watched where they’ve reduced the amount of coverage in order to afford it. In some cases, they’ve gone completely without insurance.”
Combating federal health insurance premium cost increases
To try to combat rising premiums costs, Stevens said OPM’s strategy will revolve around reducing “fraud, waste and abuse” in the government’s insurance programs.
“We have a fiduciary responsibility to the taxpayers, to our plan participants, the retirees, the current federal workers. Yet we have very little insight into what we’re actually spending this coming year,” he said. “We’re working very hard to try and get all of this information, all of this data, to be able to make good decisions, which will help us to detect fraud, waste, abuse and overpayments.”
OPM is also on a one-year deadline to implement recently added requirements from the One Big, Beautiful Bill Act. One provision of the reconciliation bill, called the FEHB Protection Act, requires OPM to create a system for verifying the eligibility of FEHB enrollees. The bill also directs OPM to include eligibility audits in any fraud risk assessments of the program.
The push in Congress came after the Government Accountability Office in 2022 found that OPM may be spending up to $1 billion annually on ineligible FEHB enrollees. Removing ineligible members, however, would reduce costs to thegovernment but not necessarily lower premiums for beneficiaries directly.
“If we get the data and the information we need, I’m convinced that we could save approximately 7% to 8% per year,” Stevens estimated.
Addressing staff needs, other challenges within OPM
OPM’s insurance programs are facing other major challenges as well. The platform for the PSHB program in particular is at risk of an operational failure, according to OPM’s inspector general office. An OIG report over the summer found that staffing shortages at OPM this year, coupled with funding issues, may negatively impact enrollees’ experience or ability to change enrollments during Open Season.
On top of that, GAO recently reported that the staffing shortages at OPM are hindering the agency’s ability to address risks of fraud in the FEHB program.
When asked how OPM has responded to the watchdog’s concerns, “We do believe our staff can work effectively through everything,” Stevens said, adding, “In the short run, we’ve improved our systems and our processes to where we’re not concerned about delays or challenges.”
Stevens added that he plans to roll out more artificial intelligence tools for participants to use in the enrollment process for future years of Open Season.
Emulating the ‘Make America Healthy Again’ agenda
In addition to addressing fraud and saving costs, Stevens also described his goal of shifting the government’s insurance programs toward what he described as a “well care model,” as opposed to what he describes currently as a “sick care model.”
“We want to move more toward a holistic approach and something to where we’re not doing a pharmaceutical-first type of intervention, or where we have faith-based behavioral health care to where they can give true solutions,” he said.
“If we get healthier and we start making better health decisions, then we’re going to be able to reduce the costs, the premiums,” Stevens added.
It’s not yet entirely clear what OPM may change in the FEHB or PSHB programs based on the big-picture priorities Stevens outlined during the interview.
But for 2026, OPM already made one distinct change: Carriers were required to end coverage of all gender-affirming care, in line with an executive order from President Donald Trump earlier this year.
Enrollees who are mid-treatment for gender-affirming care can still continue receiving coverage, according to OPM’s new requirements, but the definition of “mid-treatment” is determined individually by each health carrier. Federal health plan experts have recommended that those impacted by OPM’s change check their carrier’s plan brochure for more details.
Going forward though, Stevens also expressed interest in reconsidering coverage of GLP-1 medications, a class of drugs that are prescribed to treat diabetes and obesity.
“We want to look at utilizing these as a tool for weight loss or for treatment of diabetes,” Stevens said. “However, we don’t want it to be viewed as the end-all be-all of, ‘this is going to save me.’”
Currently, OPM requires all carriers to cover at least one type of GLP-1 for enrollees, prescribed for weight loss. It’s a requirement that health care experts have said is a positive development and ahead of the curve compared with the private sector.
But Stevens said he wants to encourage physical exercise and nutrition over GLP-1s, through the government’s insurance programs. That type of change, he said, may also lead to some cost savings.
“I want to try and move away from that, move more to incentivizing providers to have good health outcomes for their patients versus prescribed medications,” he said.
Stevens’ approach for what he sees for the future of FEHB and PSHB mirrors goals of the Trump administration’s larger push toward the “Make America Healthy Again” agenda.
Stevens, for instance, discussed what he views as a “broken” health care system that focuses on prescriptions first — emulating a sentiment that Health and Human Services Secretary Robert F. Kennedy Jr. has expressed and that has influenced some of the Trump administration’s major health initiatives.
RFK’s MAHA report from May outlined contentious views on vaccines, the nation’s food supply, pesticides and prescription drugs. The HHS report, parts of which have received strong criticism, additionally includes increased scrutiny of childhood vaccines and “fear-based” views on farming chemicals, while also blaming ultra-processed foods for unhealthy Americans.
“We truly have a secretary of health that’s fighting for the real overall well-being of health. We have a president that truly cares about it, and then we have a lot of appointees that are trying to make a big difference,” Stevens said. “It’s a massive shift in the paradigm of how we look at health care — really looking at outcomes versus prescriptions and a lot of the things that have made us an unhealthy population.”
Encouraging Open Season action
In the immediate term, Stevens encouraged participants in FEHB and PSHB over the next several weeks to take advantage of Open Season. Participants have until the enrollment window closes on Dec. 10 to spend time looking at plan brochures and comparing various insurance options that are available to them.
The push to take action during Open Season comes as relatively few insurance enrollees end up selecting a different plan each year.
“Change is tough, change is scary, and a lot of times I think people would just rather stick with their current plan and do the same, regardless of how much it could cost them more,” Stevens said. “It will surprise a lot of people in seeing that if they were to shift over to a different type of plan that they could save a substantial amount of money.”
For measuring this year’s Open Season success, Stevens said he will be looking for any potential shifts in the statistic that just 5% of enrollees change their plans each year.
“We encourage everybody to take the time — I’m talking maybe an hour of your time — to jump in and look at the different tools that we’ve created and make sure that you’re picking the plan that’s best for you,” he said. “We’ll take all of that in and see what we can do to improve our systems and processes to make it even better next year.”
It’s commonly cited that just about 5% of participants in the Federal Employees Health Benefits program change their plan during Open Season each year — so it may not be surprising to learn that many FEHB participants who take advantage of Open Season also tend to wait until the last minute to do so.
But during Federal News Network’s 2026 Open Season Exchange, Holly Schumann, principal deputy associate director for health care and insurance at the Office of Personnel Management, urged participants to get started on their research sooner rather than later.
“We do typically see a big surge of traffic on the last few days of Open Season, but I really encourage folks to take action earlier,” Schumann said. “Take the time to study all of the information. And that’s much easier to do if you’re not waiting until the last minute and feeling pressure to make a decision.”
Tips on how to research federal health insurance options
Schumann also gave some advice for where participants can get started on their studying. She recommended going first to OPM’s website. There, participants can find a plan comparison tool, as well as deeply detailed plan information across all health insurance carriers.
The plan brochures from FEHB carriers — as well as those in the Postal Service Health Benefits program — cover benefits changes for 2026, details on Medicare for each plan option, what the premium rates will look like beginning in January and much more.
“We don’t want anybody to be caught surprised by a change in their plan that they weren’t aware of,” Schumann said. “If you have a specific health care need, I really encourage you to take the time find the link on our website, download the brochure and take a few minutes to leaf through it.”
Beyond FEHB and PSHB information, enrollees can also see more details on OPM’s website about the Federal Employees Dental and Vision Insurance Program, as well as FSAFEDS — the government’s program for flexible spending accounts. FSAFEDS allows current federal employees each year to set aside pre-tax dollars to go toward eligible out-of-pocket medical expenses.
Schumann strongly encouraged participants to consider enrolling in an FSA, to help save on out-of-pocket costs.
“It allows you to save essentially 20% or 30% on what you would pay for those things, when you consider the tax savings,” Schumann explained. “There is a ‘use or lose’ rule with a flexible spending account generally, but there are mechanisms where, on the health care side for example, you can roll over any excess funds up to a certain limit — assuming you enroll in a flexible spending account the next year.”
While benefits inevitably change year-to-year in FEHB and PSHB, there are also a handful of coverage updates coming from carriers in FEDVIP as well, Schumann said. That makes it all the more prudent for participants to take a look at what’s out there this Open Season.
“Among dental plans, there are some who are offering additional enhanced benefits for additional cleanings during pregnancy, for example,” she said. “On the vision side, there are some plans that are offering additional benefits for folks with diabetes, since we know that they require some enhanced vision services. Folks who might be interested in those benefits should take the time to look at OPM’s website and find out more information about those.”
OPM’s year-round work on health insurance
Although Open Season is the most public-facing time of year for OPM’s health insurance office, the work for the agency truly takes place year-round when it comes to the government’s various insurance programs.
Throughout the year, OPM issues call letters to collaborate with carriers on any changes to benefits or coverage for the following plan year, as well as to discuss priorities on premium rates and costs within the insurance programs.
The premiums are, in part, driven by costs of care from prior years, while also incorporating predictions of what health care costs will look like in the year ahead, Schumann explained. Based on the estimations, OPM’s actuarial team then negotiates the rates with carriers to reach the final values.
“Really what we’re seeking to do is to find the right balance of comprehensive medical coverage with affordability — we’re always trying to strike that balance,” she said.
In the weeks leading up to Open Season’s start date, OPM works to update all information on its website — including the plan comparison tool, as well as all carriers’ health plan brochures for the following plan year.
“We can add information, if needed, to make sure that people get what they need to make informed decisions,” Schumann said. “We also monitor the web traffic to our site to see where people are coming from and what information sources they are most interested in, so that we can adapt during Open Season.”
Then once Open Season ends, OPM works closely with FEHB and PSHB carriers to make sure any participants who changed plans during the open enrollment period are able to get their new insurance cards and all the information they need, ahead of the actual start of the new plan year in January.
Medicare Part D — and the final word
During Open Season, Schumann also stressed the importance of considering some key differences within Medicare Part D and how that will operate for participants depending on whether they are in the FEHB or the PSHB program.
“Many FEHB plans, though not all, provide a Part D prescription drug plan that works in conjunction with their plan. And if you’re eligible and Medicare-enrolled, you’ll be opted into that plan,” Schumann said. “But you can opt out, and you will still have coverage under the underlying FEHB plan, if you choose not to enroll in Part D.”
But for Medicare-eligible PSHB participants, there is an important caveat: PSHB enrollees can only access prescription drug coverage through the program if they have Medicare Part D.
All Medicare-eligible participants will be automatically enrolled, but there is no underlying prescription drug coverage for PSHB participants if they choose to opt out of Part D.
“Every PSHB plan offers a Part D plan that works in conjunction with the PSHB plan,” Schumann said. “Enrollees still have the option to go out on the retail market, if they prefer to choose a different plan than the one offered by their carrier, and purchase a Part D plan. But they just need to know that they have to have Part D if they want to have any sort of prescription drug coverage at all” through PSHB.
Ultimately, Schumann doubled down on her recommendation for studying up and getting an early start on Open Season to ensure participants find the best plan option for them.
“I know it can be daunting to make your way through all of this information about all of the benefit choices available to you, but it’s really time well spent to make sure that you get the coverage that’s right for you and for your family,” she said. “We welcome the opportunity to serve you, and we always welcome feedback on how we can make things better in the future. So take the time, make those decisions carefully, and we’ll look forward to a successful Open Season.”
Participants will see yet another year of large premium increases for 2026, with increasing costs that will impact virtually all enrollees in both the Federal Employees Health Benefits and Postal Service Health Benefits programs.
But Kevin Moss, director of marketing and fundraising at Consumers’ Checkbook and our Fed With Benefitscolumnist, said that’s not the full story this Open Season.
“The premiums don’t all move in the same direction,” Moss said during Federal News Network’s 2026 Open Season Exchange. “There are 23 plans next year where the premium is going down in FEHB. … About half of all the other plans are either moving below that average or above that average. So you’ll have to do the research this Open Season.”
Overall, premiums are going up substantially for plan year 2026. FEHB participants will pay an average of 12.3% more toward their premiums. Out of all FEHB plans, 57 are increasing at a rate lower than the average, and 49 plans are increasing at a rate higher than the average.
For PSHB participants, premium costs are rising by an average of 11.3%, with 35 increasing at a rate below the average and 26 increasing more than the average. Thirteen plan premiums are decreasing, and one is staying the same.
Why premiums are on the rise
Some of the major driving factors behind the premium increases are GLP-1 medications, something that the Office of Personnel Management requires carriers to cover, as well as the rising age of enrollees in FEHB and PSHB.
Premiums are also rising in the Federal Employees Dental and Vision Insurance Program (FEDVIP), but to a much smaller extent. For 2026, the average dental premium increase is 3.35%, while vision premiums will rise by an average of 0.47%.
Still, there are several ways that enrollees can hedge against the rising costs next year, Moss said. For current federal employees, he recommended contributing to a Flexible Spending Account through the FSAFEDS program. It’s an option that’s available to all active federal employees, but right now, just 20% of the federal workforce takes advantage of the program.
The FSA option allows federal employees to set aside pre-tax dollars for eligible medical, dental and vision costs — and feds may be able to save about 30% on those costs by using an FSA. For 2026, federal employees can contribute about $100 more toward an FSA, for a total contribution limit of $3,400.
“Every federal employee has some out-of-pocket health care costs that they can budget and predict,” Moss said. “When we think about medical expenses and when we also consider vision expenses and dental expenses, I think most federal employees can at least find a few hundred dollars that they predict that they’re going to spend out of pocket.”
Changes to plans and coverage for 2026
At the same time that most health plan premiums are on the rise, it’s inevitable that each year some plans will exit the FEHB marketplace, while some new ones pop up.
For 2026, there will be a total of 47 carriers and 132 plan options available in the FEHB program, according to OPM. For PSHB, there will be 75 total plan options participants can choose from, across 17 different carriers.
A number of smaller and regional plans are leaving the FEHB marketplace next year: Health Alliance’s HMO Standard; AvMed Health Plan’s HDHP and Standard plans; Independent Health’s High plan; Blue Care Network of Michigan’s High plan; and Priority Health’s High plan.
GEHA Elevate and GEHA Elevate Plus are the only two plan options leaving PSHB next year.
But Moss said the most significant change for 2026 are the two plans from the National Association of Letter Carriers that are leaving the FEHB program. NALC’s exit from FEHB will impact about 29,000 enrollees who will have to either select a new plan during Open Season or be auto-enrolled into GEHA High.
That auto-enrollment option might be the right choice for individuals, Moss said, but it also might not.
“You’ll want to find out how it works before getting auto-enrolled in that plan,” Moss said.
There are also several important benefit updates that enrollees should be aware of, Moss explained. There have been some recent changes, for instance, in the coverage of in vitro fertilization through FEHB and PSHB. BlueCross BlueShield Standard and GEHA High both offer a similar benefit of up to $25,000 to cover IVF treatments.
“If you’re thinking about IVF, just make sure that you’re also thinking the other aspects of plan choice before making that plan decision,” Moss said. “What are the premium differences? What about provider network? What about the other benefits that those plans offer? Make sure that you’re really comparing on more than just the IVF.”
OPM additionally requires all carriers in both FEHB and PSHB to cover at least one GLP-1 medication prescribed for weight loss — something that Moss said is ahead of the curve in comparison to the commercial market.
“You’re going to want to go to the prescription drug resource information on the carrier websites to find out about cost coverage, whether there’s pre-authorization requirements and get some pricing information,” he said.
One other notable change for 2026 is that OPM is requiring all carriers to drop coverage of gender-affirming care for participants. OPM’s requirements earlier this year initially told carriers only to stop providing pediatric coverage of gender-affirming care, but OPM later expanded the requirement to block coverage for all enrollees in both FEHB and PSHB.
An important caveat to OPM’s changes, however, is that FEHB or PSHB enrollees who are mid-treatment for gender-affirming care will still be able to continue getting their treatment covered next year.
“The definition of ‘mid-treatment’ is left to the carriers, so anyone who’s using gender-affirming care services will really want to find out from their carrier, either through the plan brochure or the carrier website itself,” Moss said.
Taking advantage of Open Season
Even if enrollees feel satisfied with their plan option, they’d still be wise to do some research during Open Season, Moss said. Usually, just about 5% of FEHB enrollees change their plan options during each year’s open enrollment window.
“There’s homework that every federal employee has, and it all starts with looking at what’s different with your plan that you currently have,” Moss said. “The premium is probably different. The benefits can change.”
Taking a look at section two of a carrier’s plan brochure will detail any changes in benefits and costs that will occur next plan year. Because OPM mandates that all carriers’ plan brochures have the same formatting, it’s relatively easy to compare costs and benefits across different plan options, Moss said.
OPM also has a plan comparison tool, and Consumer’s Checkbook offers a “Guide to Health Plans” for federal employees, which is accessible for free through many federal agencies. The comprehensive guide includes estimated yearly costs and which plans may have the best value.
“All these resources are there for you to help people better understand both their plan and different plan options this Open Season,” Moss said.
In spite of the sharply rising premiums, Moss said, “There could be a positive here: It may spur folks to actually look to see, ‘Are there other plans that maybe can offer greater value, where I can still keep the providers that I’ve grown accustomed to but then save quite a bit of money by switching plans?’ ”
More than 30,000 federal insurance enrollees may be in for some sticker shock next year, if they choose to do nothing during Open Season.
With eight plan options being discontinued in the Federal Employees Health Benefits (FEHB) program, participants currently enrolled with those carriers — most of whom are enrolled in plans from the National Association of Letter Carriers — will, in some cases, face more than a 200% spike in premium costs, if they accept the auto-enrollment plan option for 2026.
Typically, participants whose plans leave the FEHB program are automatically enrolled in the lowest-cost nationwide plan the following year. But for 2026, the Office of Personnel Management chose a different path forward.
The specifics behind OPM’s decision remain unclear, but an OPM spokesperson told Federal News Network the agency chose a plan that’s not the lowest-cost nationwide plan “because we determined it was in the best interest of the program to do so.”
“The default plan designation ensures enrollees who do not choose a plan during Open Season continue to have health insurance coverage, but OPM strongly encourages enrollees in terminating plans or plan options to review the plans available to them for 2026 and choose the one that best meets their needs,” the spokesperson said.
Under federal regulations, FEHB participants whose plans are discontinued — and who do not take action during Open Season — will be automatically enrolled in the lowest-cost nationwide plan that is not a high-deductible health plan (HDHP), and that does not include membership fees. But the regulations additionally state, “OPM reserves the right to designate an alternate plan for automatic enrollments if OPM determines circumstances dictate this.”
For 2026, the lowest cost nationwide plan that fits the statutory requirements is GEHA Elevate. But OPM made the decision to “exercise its authority” to make GEHA High the auto-enrollment plan instead.
A spokesperson for GEHA declined to comment for this story.
All enrollees have the opportunity to make a different plan selection during Open Season, if they choose to. Open Season began Nov. 10 and will run until Dec. 8, for changes that will take effect starting in January. More information on FEHB premium rates is available on OPM’s website and in carriers’ plan brochures. Participants can also use OPM’s plan comparison tool to weigh various options for 2026.
Comparing FEHB premiums, benefits
In total, eight plan options across six plans are leaving FEHB in 2026, which will impact roughly 32,000 participants. The vast majority of affected participants were enrolled in a health plan from the National Association of Letter Carriers. NALC had two plans — NALC High and NALC CDHP (Consumer Driven Health Plan) — in the FEHB marketplace. Neither will be available in FEHB for plan year 2026, although NALC will remain a carrier in the Postal Service Health Benefits (PSHB) program.
Between those two plans, about 29,000 total participants were enrolled in NALC for 2025. Nearly 26,700 were enrolled in NALC High. A smaller portion, just over 2,300 FEHB participants, were enrolled in NALC CDHP.
Regardless of which NALC plan they were in, all of those enrollees will have to either pick a new plan during Open Season, or be auto-enrolled by OPM. NALC did not immediately respond to a request for comment.
Outside of the two NALC options that will account for the vast majority of impacted enrollees, others from various smaller plans leaving FEHB will also be automatically enrolled in GEHA High, if they do not select a different plan during Open Season this fall.
The other plans leaving the FEHB program in 2026 are:
Health Alliance’s HMO Standard
AvMed Health Plan’s HDHP and Standard plans
Independent Health’s High plan
Blue Care Network of Michigan’s High plan
Priority Health’s High plan
In terms of premiums, the exact cost increase depends on a participant’s plan option.
For instance, an enrollee in the “self and family” plan option of NALC High has been paying $283.94 per biweekly pay period for their insurance in 2025. If that enrollee takes no action, and gets auto-enrolled in the “self and family” plan for GEHA High next year, the biweekly cost will increase to $525.18, beginning in January 2026 — an increase of nearly 85% in premium cost to the enrollee.
In a more striking example, an enrollee in the “self and family” plan option of NALC CDHP, who has been paying $146.26 per biweekly pay period this year, will see their premium cost surge by nearly 260% next year — paying a premium of $525.18 per biweekly pay period, if they are auto-enrolled into GEHA High.
By comparison, the average premium increase across all FEHB plans for 2026 is 12.3%, when taking into account the 47 carriers offering a total of 132 total plan options for next year. Not all plan options are available to all FEHB enrollees, as some are specific to certain agencies or geographic regions.
Premium costs, however, are far from the only factor that enrollees should be considering when making a plan selection, according to federal health plan experts.
“FEHB enrollees losing their NALC health plan should carefully consider which health plan will be the best fit for them,” said Kevin Moss, director of marketing and fundraising at Consumers’ Checkbook. “Besides reviewing the plan premium and out-of-pocket costs for benefits, make sure to check the website of the new plan you’re considering to see if your current providers will be in-network, and how any prescription drugs you may take will be covered.”
Notably, the lowest-cost nationwide plan, GEHA Elevate, has lower premiums, but also much lower coverage than GEHA High. NALC High — which the vast majority of those impacted by OPM’s decision are coming from — is more similar to GEHA High than it is to GEHA Elevate, but still with some differences in benefits.
For instance, an enrollee in NALC High who had a $300 deductible for a “self only” plan in 2025 would move to a $500 deductible in 2026 under GEHA High. By comparison, the enrollee’s deductible would increase to $750 under GEHA Elevate.
As another example, an enrollee in NALC High with a catastrophic out-of-pocket maximum of $3,500 for a “self only” plan would see that limit increase to $7,500 under GEHA High. The out-of-pocket maximum for GEHA Elevate, in contrast, is $10,600.
John Hatton, senior vice president of policy and programs at the National Active and Retired Federal Employees Association (NARFE), said a higher-premium plan with more coverage may be the best plan for some enrollees, but not necessarily others.
“Maybe the high premium plan with more coverage is the right choice for you, but you may want to look at some other alternative plans that might be cheaper. Because there are options, even with really low deductible plans, that have lower premiums than the main big dogs in the program,” Hatton said in a recent interview on The Federal Drive. “So it’s really critical that you look and choose what’s best for you.”
As federal employees and annuitants consider making changes to their health insurance options during this fall’s Open Season, it’s also a prudent time to consider the bigger picture too — by looking at options across the entire insurance landscape.
Although Open Season is an important opportunity for feds in any year, M. Shane Canfield, CEO of WAEPA, said the unpredictability of this year for many federal employees makes it all that much more critical for plan year 2026.
“With the uncertainty with federal jobs — the layoffs, the forks in the road — we highly encourage you now, as you’re looking at your whole budget and considering whether your health plan is appropriate for you, to loop in other insurance — and that would include life insurance,” Canfield said during Federal News Network’s 2026 Open Season Exchange.
Take stock across your financial landscape during Open Season
Since many federal insurance enrollees do use Open Season as an opportunity to take a broader look at their overall financial health options, it becomes a busy time of year for WAEPA, Canfield said. But unlike the sharply rising premium rates enrollees will face in 2026 for their health insurance costs, the price tag for life insurance is much smaller in comparison.
And beyond that, WAEPA also provides a return of 10% of insurance premiums back to the individuals who are enrolled in the program.
“We take that very seriously,” Canfield said. “The implications flow all through our business. We take a long-term view. We invest in the organization. We do earn revenue to run the program, but all of it inures back to the members.”
And looking beyond a federal career, Canfield emphasized that participants can take their insurance coverage with them, even if they ultimately exit the government’s rolls due to all the workforce changes from the last several months. Canfield said that’s relatively uncommon in the life insurance marketplace — and that it may be more important of a factor this year than ever before.
“If you leave federal service for any reason — retirement, RIFs, layoffs, or it’s just time for you to leave because you’ve had 30-plus years of service and you’re ready to do something new — you can take WAEPA with you,” Canfield said.
Added opportunities through WAEPA
Federal insurance participants also have the alternative option of enrolling in the federal government’s life insurance program, called the Federal Employees’ Group Life Insurance. But Canfield noted that there are some key differences between WAEPA and FEGLI to keep in mind this Open Season.
Through WAEPA, for instance, Canfield said that on top of the costs being generally lower, there are also some riders added onto the benefits. That includes an automatic benefit increase rider, as well as a chronic illness rider. The rider gives an early death benefit payout — of up to $125,000 per year — to people whose medical conditions would also trigger long-term care insurance benefits.
“This is what prudent financial management is all about with an insurance plan,” Canfield said. “We exist for one reason, and that is to provide life insurance for civilian federal employees.”
Additionally, federal enrollees can get access to a scholarship program through WAEPA, as well as a financial wellness program. The financial wellness program lets individuals establish a confidential relationship with a certified financial planner, at no additional cost.
“We encourage people, even if you don’t want to buy the life insurance, join WAEPA,” Canfield said. “You don’t have to buy the life insurance to join and take advantage of this. And now is a great time, with all the uncertainty in the markets and the work environment.”
Terry Gerton Let’s talk about the current state of shutdown negotiations in the Senate. You’re sitting up there, what are you hearing?
Maeve Sheehy Yeah, we are officially well into the longest shutdown ever. There’s some growing frustration on both sides as we see kind of travel delays, people missing their SNAP benefits. So a lot of problems are starting to pile up, but we’re still seeing each side be pretty dug into its respective point of view. There are bipartisan conversations right now going on in the Senate. I just spoke with House Appropriations Chairman Tom Cole, and he was speaking a little bit about the negotiations that are happening with a continuing resolution and a minibus. But really what we see happening here is a lot of going around in circles. They keep landing on the same issues that we’ve had since the very beginning, like with Affordable Care Act tax credits. So it’s kind of a question mark right now where we’ll be able to get out of this, but it does seem like there’s intense pressure on both sides to reach an agreement.
Terry Gerton Well, there was some optimism at the beginning of last week that faded by the end of the week. There was perhaps hope that they could move that minibus with the three agreed-upon appropriations bills, MILCON, VA, USDA, and Leg Branch. What’s going to happen there?
Maeve Sheehy Yeah, we saw a lot of confidence, especially on Monday, with that three-bill minibus. After Tuesday’s elections, Democrats did better than a lot of people were expecting, and that kind of, you could say, inspired them to dig in a little bit more. They see that as a, that the American people are kind of on their side with this. And so things have derailed a little bit. Although I will say for the first 35 days of the shutdown, there were barely any bipartisan negotiations in the House or Senate. And now we’re actually seeing senators sit in rooms together and and talk about a way out. So, that is kind of a step forward to ending the shutdown, even though there isn’t any sort of agreement yet.
Terry Gerton Well, certainly in other pressure points, the FAA’s reduction of domestic air travel, the reduction in SNAP benefits, and coming up on another military pay cycle, all of those were expected to be pressure points. Are you seeing that anybody is feeling the need to respond to those?
Maeve Sheehy Yeah, and especially with the flight delays, you hear a lot about this because in the 2018-2019 shutdown, that was kind of a big forcing mechanism for lawmakers to make a deal. And we actually did see the FAA have to cut hundreds of flights already at airports across the country. So what you’re going to see is people having delayed flights, people having canceled flights, and that’s obviously a pretty big disruption. Lawmakers are taking note of that. It’s making things much more urgent, especially with the holidays coming up, being the busiest travel time of the year. With SNAP benefits, I would say that there’s been a lot of discussion about this, but there is that kind of legal fight going on between the Trump administration and judges over how many benefits and whether they can immediately put out full benefits. So there’s been a lot of questions around that, but there definitely is a lot of stress from the perspective of the 42 million Americans who received these food stamps and didn’t get them at the beginning of the month.
Terry Gerton Right. And I guess the other point that we had expected to maybe move hearts and minds was the healthcare premiums increase. I mean, the feds are now in Open Season, other folks are looking at the ACA premium benefits. That doesn’t seem to be having the effect people expected either.
Maeve Sheehy Yeah, Democrats for a long time had said that November 1st was a huge day in this whole experience because that’s the day that people would begin open enrollment, see that their premiums were going up. And while that did happen to a degree, it’s not really having any sort of shutdown-ending effect. We’re hearing Senate Democrats really calling for an ACA subsidy extension, and Senate Majority Leader John Thune has said that he would put that on the floor for an up or down vote. But the big problem here, or the big hang up, is that Speaker Mike Johnson in the House won’t promise to put that on the House floor for a vote. So, getting a bill through the Senate is all well and good, but it doesn’t really have any impact unless you can guarantee that it will also go through the House. And that’s why we’re seeing these negotiations repeatedly come up against this same obstacle.
Terry Gerton Well, you mentioned that folks are at least meeting in in the same room to have some conversations. Do you have a sense of what the non negotiables are from each side?
Maeve Sheehy It seems to me that, well, from the House perspective, I’ll start with that ’cause I’m a House reporter. Speaker Johnson does not want to negotiate at all because he believes that the House has done its job and that Democrats are kind of holding the government ransom. In the Senate, it seems like Democrats are intent on having some sort of healthcare takeaway. They also want to make sure that federal workers who have been furloughed over the past month will get their back pay. That is guaranteed under law, under 2019 law. And until this shutdown, it’s been pretty understood that federal workers who are furloughed will get back pay. But there’s been some questioning about the legality of that, and the Trump administration has suggested that perhaps they won’t get the back pay, which would be a really big deal, obviously, for a lot of federal workers.
Terry Gerton I’m speaking with Maeve Sheehy. She’s a congressional reporter with Bloomberg Government. Well, Maeve, to that exact point about back pay for federal workers, Ron Johnson has a bill to pay excepted federal workers and military service members during the shutdown. Is that getting traction?
Maeve Sheehy It’s one of those things that sounds like it would, but actually hasn’t. Basically, Democrats have said — most Democrats have said, it’s gotten some bipartisan votes — but that they don’t want to kind of except very narrow parts of the workforce and allow them to get paid because that could leave vulnerable other people not to get paid. Because Ron Johnson’s bill would pay some federal workers, but not every single federal worker. And I think that that’s kind of the big sticking point and that’s what’s stopping it from getting more traction than it has.
Terry Gerton That’s an interesting take on it. Let’s change topics just a little bit. What else is going on with the legislative agenda? We know that the NDAA might be moving to conference soon. What else are you hearing?
Maeve Sheehy Yeah, in the House there’s really not much happening at all because they’ve been out of session for almost fifty days at this point. It’s been a really, really long time, and there haven’t been committee meetings, there haven’t been sort of the bipartisan meetings that there usually would be. So that’s obviously hampering things over here. In the Senate, they’ve been able to do a little bit more. And also, as you mentioned earlier, there are discussions about appropriations. So even if Congress does pass a clean continuing resolution to keep the government funded or to fund the government again, there are still those appropriations bills that are really important in the eyes of lawmakers to get done.
Terry Gerton So really until we get the shutdown sorted, not a whole lot else happening in those back rooms on the Hill.
Maeve Sheehy Yeah, we’ve been hearing a lot less about pretty much every single policy area ever since the government shutdown happened, just because it’s become the number one issue.
Terry Gerton Well, there was one other tidbit of information last week. Nancy Pelosi announced she’s not going to run for re-election. How did that play out?
Maeve Sheehy Yeah, it wasn’t necessarily a surprising decision because Pelosi had sort of hinted that maybe this would be her last term. She’s been on the Hill for so long, this is her, I believe, twenty-first or twentieth term in office. So she’s one of the longest serving members. I think the real question that this raises for me and that I’ve heard on the Hill as well is, will some of these other longest serving members, like Congressman Steny Hoyer, who served in leadership with Pelosi, like, will they also kind of take this as their time to leave? And the Democratic Party has had this whole question of generational change, of passing the torch, ever since President Biden stepped down. There were all of these questions about committee leaders in the House. So it’s really interesting to look at who is in leadership positions in the House and how long some of them have been there.
Terry Gerton That generational change question continues to come up, so we’ll see whether she’s opened up the door for others.
Senate Majority Leader John Thune, R-S.D., speaks to reporters after final Senate passage of the stopgap funding bill to reopen the government through Jan. 30, at the Capitol in Washington, Monday evening, Nov. 10, 2025. (AP Photo/J. Scott Applewhite)
Open Season has officially begun. Enrollees in the Federal Employees Health Benefits program have between now and Dec. 8 to make changes to their health plan options. The open enrollment period also applies for Postal Service employees, as well as those with dental and vision coverage. For plan year 2026, federal employees’ health insurance premiums are rising by an average of 12%.
The Office of Personnel Management is facing a major flood of employees’ retirement applications. More than 20,000 new retirement cases entered OPM’s system in the month of October alone. That’s on top of the tens of thousands of cases OPM already has in its inventory. The large caseload is slowing down OPM’s processing speed as well. In October, it took an average of 79 days to move a retirement package from start to finish. On top of that, OPM is expecting another big wave of retirements to hit at the end of the calendar year.
The Trump administration violated Education Department employees' First Amendment rights when it changed their out of office messages to add partisan or political statements when the partial shutdown began. A U.S. District Court in Washington, D.C. ruled Friday in favor of the American Federation of Government Employees' lawsuit. The court provided declaratory and permanent injunctive relief. The court said the White House must immediately remove partisan messaging from the out-of-office messages associated with only AFGE members’ e-mail accounts. If that isn't possible, the court said the department must remove such messaging from all affected employees’ e-mail accounts.
The Treasury Department joins a growing set of agencies investigating the 8(a) program. The Treasury Department is joining the Small Business Administration in analyzing contracts under the 8(a) program for possible fraud. Treasury said it kicked off a comprehensive audit of all of its 8(a) contracts and task orders, totaling approximately $9 billion. The agency decided to take a deeper dive into its participation in the 8(a) program after suspending one of its biggest small business contractors, ATI Government Solutions, following allegations of fraud involving more than $253 million in previously issued contract awards. As part of the investigation, acquisition professionals are required to review detailed staffing plans and monthly workforce performance reports for all service contracts.
There may finally be an end in sight to the now longest partial government shutdown ever. A group of moderate Democrats have a tentative deal to reopen the government if Republicans promise to hold a vote on expiring health care subsidies by December. The bill would pass three annual spending bills, reverse any federal employee layoffs that happened during the shutdown and extend the rest of government funding until Jan. 30. Sens. Jeanne Shaheen (D-N.H.), Maggie Hassan (D-N.H.) and Angus King (I-Maine) agreed to a bill that would pass three annual spending bills, reverse any federal employee layoffs that happened during the shutdown and extend the rest of government funding until Jan. 30. Republicans had not yet said whether they support the deal, and it's unclear whether there would be enough Democrats to support it as well.
The Congressional Budget Office is putting in place cybersecurity improvements after a recent hack. The CBO confirmed last week it is investigating a security incident. The Washington Post reported that a foreign actor was behind the data breach. CBO didn’t confirm who it believes is behind the hack. But the congressional agency said it has implemented additional monitoring and new security controls to further protect the agency’s systems.
The Coast Guard has beat its recruiting goals for the second year in a row. It added more than 5,200 active-duty enlisted service members in fiscal 2025, well above its goal of 4,300. That’s also the highest accession number for the Coast Guard since 1991. The Coast Guard Reserve also beat its annual goal by adding 777 new reservists last year. The latest numbers mark a continued turning point for the Coast Guard, which had been in the midst of a recruiting crisis just a few years ago.
The Pentagon is restructuring the chain of command within its acquisition system. Defense Secretary Pete Hegseth said Friday that the Defense Department is replacing the program executive offices that have long formed the backbone of the DoD's procurement system with “portfolio acquisition executives." The PAEs will be more empowered to make decisions and more directly accountable for performance. The changes are part of a wide-ranging overhaul of DoD acquisition rules, regulations and culture. Hegseth said these updates are part of what he framed as a war on Pentagon bureaucracy amid a need to accelerate the procurement system, increase competition, use commercial technology as DoD’s default option and eliminate excessive regulations.
As the federal workforce continues to evolve, the government’s employee benefits landscape is simultaneously adapting to the changing needs and expectations of this diverse workforce.
For health carriers, adapting to the evolving federal workforce means reevaluating and refining the benefits offered through government insurance programs to better align with their changing needs.
“A lot of long-time federal employees are retiring or leaving and being replaced by younger people, so what is important today is different than what was important 20 years ago,” Missy Plohr-Memming, MetLife’s senior vice president for U.S. Group Benefits, said during Federal News Network’s 2026 Open Season Exchange. “So when we think about the program benefits for 2026, we think about flexibility and expanding that program.”
Delivering benefits through FEDVIP and more
MetLife Federal Benefits offers a range of coverage options within the government’s marketplace, including comprehensive dental and vision coverage as part of the Federal Employee Dental and Vision Insurance Program (FEDVIP), as well as various supplemental health benefits separate from the program. In total, MetLife offers benefits to about 50,000 employers, spanning roughly 40 million employees and their dependents.
“We have the privilege of caring for those folks every day, and we take that privilege quite seriously,” Plohr-Memming said.
Part of MetLife’s current focus, she said, is to look at what is most important to federal employees in the current moment, especially as it pertains to a more holistic approach to health and wellness.
“Certainly, people need medical benefits. … But then there are all the other ancillary benefits. Think of that as dental and vision, of course, but it’s also things like legal insurance and pet insurance,” Plohr-Memming said. “And then you bring in those elements of financial health and mental health, and you can really craft a bespoke set of benefits for your unique circumstances, from the offerings available through the Office of Personnel Management and as a federal employee and a member of the federal family.”
Expanding benefits to meet changing needs
There are some specific ways that MetLife is changing its options to meet the evolving needs of federal employees. Some of those key changes are focused on expanding options for dental benefits.
“We worked to craft some plan design changes that make sense in the context of the modern workforce, including offering three cleanings for people who are pregnant or have diabetes,” Plohr-Memming said.
But the changes for MetLife go beyond updates to the benefits themselves, she said. For instance, dental and vision enrollees can also access identity and fraud protection from the health carrier — at no additional cost.
“We’re also thinking about things like the network: How do we make sure we have the most expansive network, both for dental and vision?” Plohr-Memming said. “We want to meet people where they are in their time of need, and in the place that they believe they can get the best care.”
Taking advantage of Open Season
An annual study conducted by MetLife, the Employee Benefit Trends Study, found that 35% of federal employees feel “holistically healthy.” That’s lower than the 39% of U.S. employees overall who say the same. And within the federal workforce, 27% of federal managers say they feel “holistically healthy,” compared with 40% of nonmanagers in government who say the same.
Part of the reason for that divide may stem from an incomplete understanding of the benefits and coverage that federal employees can access, according to MetLife’s analysis of the study’s findings.
Open Season is the best time for participants to conduct research and learn more about the options that are out there, Plohr-Memming said.
She recommended three specific steps federal employees should take before the enrollment window closes Dec. 10:
First, really take time to consider the different options at participants’ disposal.
Second, focus on family circumstances and what may be necessary there.
Third, look “holistically” at the options — and beyond just the premium cost.
“What’s really important is, what does that premium get you?” Plohr-Memming said. “When you estimate your out-of-pocket expenses plus the premium that comes out of your paycheck, you can get the true cost or the true value of the program.”
She recommended visiting carriers’ benefits websites and checking pricing — say, for example, the cost of a root canal or having a cavity filled and comparing pricing. People should look at their possible needs over the coming year, Plohr-Memming said.
“Our philosophy is always focused on you building a more confident future. That philosophy guides everything we do, from the capabilities we establish to the plan designs we work with employers on and actually how we execute and deliver service.”
Federal retirees—you have more than earned your benefits for the many years that you’ve dedicated to service. So why not make the most of them in retirement? Kaiser Permanente’s Medicare Advantage health plans, combined with your Federal Employees Health Benefits (FEHB), deliver the convenient, high-quality, affordable care that you need to keep you at your healthiest—and to stick to your budget.
Whichever Medicare health plan you choose, here are five ways that Kaiser Permanente can support your health and your life in retirement:
A coordinated system of care
Our doctors, pharmacists, diagnostics, medical facilities and health plan all work together to deliver convenient care that’s personalized for each member. And, as a member, your care team will help you manage your care by making appointments, finding specialists and more, so you’re never left on your own. This lets you spend your time on other things—like enjoying your retirement.
Top-rated care from highly skilled doctors
In the survey Best Health Insurance Companies of 2025 by Insure.com, Kaiser Permanente as a national enterprise is tied for #1 overall among 65 competitors.
Our region-wide pool of 1,800+ physicians is recruited from the top medical schools in the country, and many are recognized as Top Doctors1 annually in local publications. They practice in 60+ specialties, including:
Endocrinology
Gastroenterology
Ophthalmology and many more
A focus on preventive care
There’s no better time to focus on your overall well-being than in retirement. You deserve to live your golden years to the fullest, as healthy as you can be. Because frequent monitoring and early detection are key to better outcomes, as a Kaiser Permanente member you’ll get your blood pressure checked at every visit. Our members also get same-day results for mammograms, so they get to diagnosis and treatment faster. This commitment to prevention is the reason why:
We lead the region in controlling 81% of members’ blood pressure.
We lead the nation for members who get screened for colon cancer (80%), cervical cancer (91%), and breast cancer (85%).2
Easy access to care
Our members can see a doctor face-to-face at any of our 35+ medical facilities throughout the Mid-Atlantic region. Most offer primary and specialty care, lab, X-ray, and pharmacy together under one roof. We also offer access to hospitals, After Hours Care, and Urgent Care centers, including several Advanced Urgent Care centers open 24/7.
Our $0 virtual care options help members conveniently get medical attention 24/7. These include:
Phone appointments
Video visits
E-visits3
Same day, on-demand visits to see a doctor by phone or video for a minor health concern are also available—no appointment needed. And any doctor our members see will have access to their digital health record to personalize their care.
Extra convenience and wellness benefits
One no-cost hearing aid per ear every 36 months
Nonemergency transportation to medical providers (up to 24 one-way rides per year)
Membership in the One Pass® fitness program,4 where members can choose from a nationwide network of gyms and fitness centers or enjoy digital fitness classes from the comfort of home
What Kaiser Permanente Medicare Advantage plans are available to FEHB members?
Members can choose either a High Option or Standard Option plan, both with great benefits.
For Medicare Advantage 1, High and Standard Option plans offer:
No copays for primary care, specialty care and Urgent Care visits (High Option), plus lower copays for outpatient surgery, inpatient hospital and most prescription drugs
$50 over the counter (OTC) quarterly wellness benefit to order items such as cold remedies and pain relievers (High Option)
For Medicare Advantage 2, High and Standard Option plans deliver:
Up to $2,400 reimbursement per year ($200 per month) for the Medicare Part B premium you pay
Lower copays for primary and specialty care office visits, outpatient surgery, Urgent Care and most prescription drugs
Prosper members also get money-saving benefits:
Lower copays for primary and specialty care office visits, outpatient surgery, inpatient hospital, Urgent Care and most prescription drugs
No annual deductible
As a retiree, you deserve to live a hassle-free, healthy life. When you combine your FEHB coverage with a Kaiser Permanente Medicare Advantage plan, you’ll get seamless care, save money, and enjoy extra benefits that help keep you at your healthiest—and make your life easier.
This article is sponsored by Kaiser Permanente. Discover how our Medicare Advantage plans work seamlessly with FEHB to support your health and budget. Visit kp.org/fedsmedicare or call 1-877-547-4909 to learn more.
1 The physicians who practice at Kaiser Permanente are recognized as Top Doctors in Arlington Magazine (2025), Bethesda magazine (2025), Northern Virginia Magazine (2025), Washingtonian magazine (2024), and Baltimore magazine (2024).
3 When appropriate and available. If you travel out of state, phone appointments and video visits may not be available in select states due to licensing laws. Laws differ by state.
4 One Pass® is a registered trademark of One Pass Solutions, Inc. in the U.S. and other jurisdictions and is a voluntary program. The One Pass program and amenities vary by plan, area, and location. The information provided under this program is for general informational purposes only and is not intended to be nor should be construed as medical advice. One Pass is not responsible for the services or information provided by third parties. Individuals should consult an appropriate health care professional before beginning any exercise program to determine what may be right for them. One Pass is not available with Kaiser Permanente Medicare Advantage DC (HMO-POS) or Kaiser Permanente Medicare Advantage Value 1 and Value 2 MD (HMO) plans. One Pass® is a registered trademark of Optum, Inc. in the U.S. and other jurisdictions and is a voluntary program.
Terry Gerton: Open Season kicks off today. People might have been a little distracted by all the other things that are happening in the federal government and with the federal workforce, but if they wake up this morning and they’re listening to us, they go, ‘Oh my goodness, it’s Open Season.’ What should they know initially about timelines and important things to look at?
John Hatton: Well, they have from today until December 8th to make a choice of plans. And we highly encourage people to look at their plan options every single year. But really, this year, it’s even more critical with the second year of double-digit premium increases. So you really have an opportunity to save money by choosing a different plan in many cases. There’s a lot of good plan options with quality comprehensive coverage. And so it’s really just about making sure you’re able to walk through a process that makes you feel confident in that change of plans and choice. And so we’re there to always help people with that decision-making process, but really encourage people to go through it.
Terry Gerton: If people are furloughed and they’re not seeing their office emails, they don’t have access to their work computer, does that pose a challenge for anybody getting ready to enroll?
John Hatton: People should still be able to enroll through the normal portals. I think where it poses a challenge with the shutdown ongoing is just communication from federal agencies. So OPM is still up and running. They have funds paid essentially through your premiums for administration of the program. But the agencies are shut down and you may not have health fairs going on. You may not have communication through agencies. You may be lost in terms of where to go to enroll and sign in. And so that part I think will be challenging for people, but accessing, being able to actually make a change and accessing OPM, hopefully should not.
Terry Gerton: So they’re going to have to do a little bit more of their own research at that point. Talk to us or point us in the right direction about what’s new and what people should really be paying attention to in this year.
John Hatton: Well, plan options remain pretty broad and comprehensive and there are tweaks from year to year. I think on the program-wide basis, there are some additional required coverages like PrEP medications for HIV treatment. The administration took away gender-affirming care treatments. There continues to be IVF coverage for infertility treatment in the program. So each plan has to cover at least one GLP-1 medication. So there are some tweaks around, I would say, the edges of the program in terms of program-wide, but I think people really need to take a look at their individual plan. And each plan may change, and I think we’ve seen a little bit more changes, plan-to-plan, than we typically see or that we’ve see in the past. I know on the postal side, there’s some tweaks to Medicare reimbursements, which a lot of retirees find critical. So if you already have Medicare, you can get some money off those premiums in certain plans. There’s been some tweaks on the Pulsar side, but not the federal side for that. So I think it’s really important for people to look at that section two of the plan brochure and take a look at the individual changes because not only are you facing these increases in premiums, you may have changes in your underlying plan.
Terry Gerton: So let’s talk about those premium changes. This is a second year of double-digit premium hikes. What’s driving the cost increases?
John Hatton: I wish I could give you a very specific answer. OPM provided some very generic answers like costs of providers have gone up, some increased utilization of prescription drugs, including GLP-1s, is probably the most specific thing they provided. But the costs of health care are going up across the country and that’s reflected in these premiums.
Terry Gerton: Health care premium costs are a big issue in the shutdown conversation and negotiation. Is that related to the prices folks are seeing for the federal programs?
John Hatton: Mostly no. The issue over the ACA premiums is whether to extend enhanced subsidies. So this is on the Affordable Care Act exchanges for people who don’t have employer-based coverage, don’t have Medicare, don’t have Medicaid. And during COVID, one of the bills that passed enhanced those subsidies. So it used to be up to a certain amount. There are now stronger subsidies. So if those go away, people are seeing potentially triple-digit increases in their premiums in terms of percentage from just large amounts of money that are going to really make it hard for people to retain their health care coverage at all. And they don’t have, I don’t think, the same ability to choose a new plan that saves them more money the same way you may in response to the FEHB premium increases. There is still underlying increases in those premiums, though. So I think maybe 26% on the Affordable Care Act is changed if you take away the subsidies. So that is related. There’s an underlying premium increase that’s across the board that’s affecting both FEHB and the Affordable Care Act, but the issue with the shutdown is these enhanced subsidies that allow people that don’t have employer-sponsored coverage to get affordable health care. And that’s kind of been the crux of the Affordable Care Act in the first place is providing some safety net and alternative outside of your employer-based coverage and luckily, federal employees and retirees have that employer-based coverage in its quality. But some people in this country don’t.
Terry Gerton: I’m speaking with John Hatton. He’s staff vice president of the National Association of Active and Retired Federal Employees. John, let’s come back to the OPM plans. They made some changes to default plans for folks whose coverage is going away. What do people need to know if they’re looking at an automatic enrollment? How is that process going to play out and what if it doesn’t fit their needs?
John Hatton: Yeah, anytime your plan is dropping out, you’re defaulted into a different plan. So you don’t totally lose coverage. You don’t have to make an affirmative choice. That’s a good positive thing. This year, the NALC plan is dropping out of the federal side of the program. They’re still on the postal side. So if you’re a postal employee or retiree, you can still retain it. But that’s a significant number of people. OPM made the choice to not default into the lowest cost nationwide plan without a high deductible and without an association membership fee. That’s what the regulation says. Then it has another sentence that says they reserved the right to designate an alternate plan for automatic enrollments. So this year, the lowest cost nationwide plan would be the GEHA Elevate plan, but instead, they have designated the GEHA High plan. So in the past, you would be automatically enrolled into a low-premium plan. In this case, you’re automatically enrolled into a high-premium plan. So particularly if you had a consumer option in NALC, for example, you’re going to see a huge spike in increases if you just defaulted in and you don’t make an alternative choice. So we really encourage people to choose. I mean, maybe the high premium plan with more coverage is the right choice for you, but you may want to look at some other alternative plan, even with those low deductibles that might be cheaper because there are options, even with really low deductible plans that have lower premiums and kind of the main big dogs in the program. So really critical that you look and choose what’s best for you.
Terry Gerton: So back to our point at the beginning, which is people really need to do some research, especially if they don’t have access to the experts in their organization.
John Hatton: Yeah, and NARFE provides resources. We have webinars that walk people through their options and really step-by-step, how do you simplify the process? We actually surveyed members and first of all, about less than 5% of people change plans every year, unfortunately. And I think that’s because they also said about 80% or more are content with their plan. But people are not content with these huge double-digit premium increases. But the reason they often, I think, don’t change is because the complexity of the process and they’ve said they’d rather write at-will or read Shakespeare in terms of understanding the process. So we really try to simplify it step by step so you can feel confident that if you’re making a choice that lowers your premiums, you’re still retaining some quality coverage. And I think that’s what people are most worried about. They have a plan that works for them. They don’t like the premiums are going up, but for them to switch, they’re taking a risk and a leap of faith that this other plan is going to do and meet their needs the same way. And I think when people realize that they could be leaving potentially thousands of dollars on the table, like that’s the difference in premiums. It’s for self-only plan for similar low deductible plans. It’s $200 a month. For self and family, it’s $500 a month. If you’re switching to a high deductible plan, it’s even more. So you could have $7,500 in premium difference in some cases from one plan to another. And yes, you’re risking a higher deductible, but it’s maybe $1500 more or something like that. So you’re going to save $6,000 just on premiums and have to maybe pay a little more out of pocket after the fact. So just thinking about some of those things and what the trade-offs really are with some of these choices, it’s a lot to navigate. It’s complicated. People don’t understand the terms all the time. They don’t understand the tradeoffs and they want to make sure they can get health care when they need it. The plan is designed to utilize the fact that you have a choice in plans. It’s a great competition to help drive down costs. And when people aren’t actually making a choice, it’s not really working that way. So I think we’ve seen these double-digit increases in part because people aren’t making those choices.
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