The upcoming federal benefits Open Season is shaping up to be the most critical—and potentially costly—in recent memory. Federal employees and retirees are facing a double-edged sword: a sharp average 12.3% increase in the enrollee share of Federal Employees Health Benefits (FEHB) premiums and a significant shakeup in plan offerings, including major carriers dropping out of the program.
As reported by FEDweek, this marks the second consecutive year of steep hikes, creating a staggering cumulative 25% increase in out-of-pocket premium costs over just two years. With the Open Season running from November 10 to December 8, passively letting your coverage roll over could be a financially devastating mistake.
Why This Year Is Different
The premium hikes are just the beginning. The entire FEHB and Postal Service Health Benefits (PSHB) landscape is shifting:
- Major Plan Dropouts: Humana is exiting the FEHB/PSHB programs entirely, leaving approximately 114,000 enrollees with no choice but to actively select a new plan. If they do nothing, they will be auto-enrolled in a default plan that may be a poor fit for their health needs or budget.
- Other Coverage Changes: Aetna is introducing a new high-deductible health plan, and other carriers are discontinuing specific plan options in various regions.
- Persistent Inflation: These hikes are part of a larger, persistent trend. A 2025 Kaiser Family Foundation (KFF) report noted that healthcare costs are rising at the fastest pace in a decade, driven by prescription drug prices and increased provider usage.
These changes are especially critical for retirees and those planning for retirement. Healthcare is one of the largest and most unpredictable expenses you will face. A 2025 estimate from Fidelity Investments calculated that a 65-year-old couple may need approximately $330,000 saved (after-tax) just to cover their medical costs in retirement. Passively accepting a 12% premium hike, or being defaulted into a plan with a high deductible, can directly jeopardize your long-term financial security.
Open Season Is Now a Critical Financial Checkpoint
This year, Open Season is not a routine administrative task. It is a critical financial planning event that demands your full attention. Simply “defaulting” to your current plan—a common practice for over half of all employees—is no longer a safe option. You must review your plan’s new premium, changes in co-pays, drug formularies, and provider networks.
This complex landscape is where expert, unbiased guidance becomes essential. Internal Benefit Advisors is dedicated to educating federal employees on the intricate details of their benefits, helping them make smart, cost-effective decisions that protect both their health and their wealth.
Here’s how they empower you to master this critical Open Season:
- Comprehensive FEHB/PSHB Analysis: They can provide a complete and unbiased review of your new health plan options, helping you compare premiums, deductibles, and out-of-pocket maximums to find the coverage that provides the best value for you and your family.
- Integrating Healthcare into Your Retirement Plan: Your FEHB plan is a cornerstone of your retirement security. They help you understand how your healthcare costs will impact your retirement budget and how to plan for them, ensuring your FEHB and Medicare integration strategy is sound.
- Exploring All Your Options (like HSAs): With new high-deductible plans (HDHPs) being introduced, they can help you analyze if an HDHP, combined with the powerful, tax-advantaged Health Savings Account (HSA), is a better long-term financial strategy for you.
- Empowerment Through Education: The world of health insurance is complex. Internal Benefit Advisors provides the clear, unbiased education you need to navigate your FEHB choices and make confident, proactive decisions for your financial well-being.
The cost of healthcare is rising. Don’t get caught by surprise or default into a costly mistake.
Take the definitive step to control your costs and secure your health. Contact Internal Benefit Advisors today for a consultation and build a smart, strategic plan for this critical Open Season.
References
- FEDweek. “Premium Increases, Coverage Changes Lie Ahead in Health Insurance Plans.”
- FEDweek. “OPM Details Coverage Changes, Plan Dropouts for FEHB, PSHB in 2026.”
- Fidelity Investments. (2025). Retiree Health Care Cost Estimate.
- KFF. (2025). Employer Health Benefits Survey.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
