The government has reopened, but the administrative fallout is creating a new pressure cooker for federal employees. The Office of Personnel Management (OPM) has issued a stern reality check: despite the chaos of the 43-day shutdown, the annual Federal Benefits Open Season will not be extended “at this time.” As reported by FEDweek, this leaves employees with a shortened window to make critical healthcare decisions, all while facing a significant financial “catch-up” on their next paycheck.
This guidance creates a dual challenge: a hard deadline for complex benefits choices and an immediate reduction in the back pay many are counting on to recover financially.
📉 The “Catch-Up” Shock: Your Back Pay Will Be lighter
While federal employees remained insured during the shutdown, the premiums for that coverage were not being paid by the employee. Now, the bill is due. OPM has directed agencies to collect these unpaid premiums for FEHB (health), FEGLI (life insurance), and FEDVIP (vision/dental) from the retroactive paychecks currently being processed.
Sound Data: The Cost of Coverage For many, this deduction will be a shock.
- The Math: The shutdown covered approximately three pay periods.
- The Cost: With the average employee share of FEHB premiums rising, a typical family on a standard plan might pay around $250 to $300 per pay period.
- The Impact: This means a deduction of $750 to $900 will be taken immediately from your back pay for health insurance alone. Add in FEGLI and FEDVIP, and your “make whole” check could be over $1,000 lighter than expected.
- Future Hikes: This “catch-up” is paying for 2025 rates. The decision you make now during Open Season will determine your 2026 rates, which are set to rise by an average of 12.3%.
⏳ No Extension Means No Room for Error
With OPM holding firm on the December 8 Open Season deadline, the window to evaluate the drastic plan changes for 2026—including the exit of major carriers like Humana—is rapidly closing. Federal employees returning to a backlog of work must now simultaneously navigate one of the most complex Open Seasons in history without the cushion of extra time.
Rushing this decision because you are busy “catching up” at work could lock you into a plan that costs you thousands more in premiums or deductibles next year.
🛡️ Navigate the Crunch with Expert Support
You are being squeezed by a tight deadline and a smaller-than-expected recovery check. You need a strategy that addresses both your immediate cash flow and your long-term coverage.
This is where Internal Benefit Advisors steps in. We provide the focus and expertise you need when your attention is divided.
Here is how we help you manage this critical window:
- Rapid Open Season Analysis: We can quickly compare your current plan against the new 2026 options, identifying the best value for your specific medical needs so you can make a confident choice before the December 8 deadline.
- Back Pay Cash-Flow Planning: We help you anticipate the exact amount of benefit deductions you will see on your retroactive pay, allowing you to plan your budget accurately and avoid further financial stress.
- Holistic Benefits Review: We ensure your FEGLI and FEDVIP choices align with your overall financial plan, ensuring you aren’t over-insuring in one area while leaving gaps in another.
The government has set the clock, and it is ticking fast. Don’t let the rush lead to a costly mistake.
Take the definitive step to secure your health and finances. Contact Internal Benefit Advisors today for an urgent Open Season consultation.
References
- FEDweek. “OPM Addresses Benefits Impact as Shutdown Ends; Open Season Not Being Extended ‘At This Time’.”
- U.S. Office of Personnel Management (OPM). Benefits Administration Letter: 2026 FEHB Premiums.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
