Rates are going up steeply for health insurance under the Federal Employee Health Benefits program (FEHB) for the second year in a row, an average increase of 12.3% in 2026, following 2025’s average increase of 13.5%.

That means federal employees, including military veterans who work for the federal government, need to review their health insurance plans during this year’s open season more than ever, according to the National Active and Retired Federal Employees Association (NARFE). 

And they need to go online and do it now, since open enrollment for 2026 ends Dec. 8, 2025.

Doing so -- and adopting a new strategy such as taking more risk on a higher deductible or out-of-pocket limit -- could save federal beneficiaries thousands of dollars in 2026, said John Hatton, NARFE’s staff vice president for policy and programs, in an interview with Military.com.

Read More: Tricare and FEDVIP Open Seasons: What You Need to Know

The consecutive increases may be influencing FEHB users’ selections during the ongoing open enrollment.

In a survey by NARFE, only 50% of federal employees said they intended to stick with their current health plans in 2026, a 30% reduction from 2025 and “a potential reflection of changing plans and increasing costs,” according to the association.

A spike is likely significant considering that generally, “people would rather parse out the meaning of Shakespeare,” Hatton said. Comparing health plans is “very complex. It’s daunting. It’s overwhelming.”

But this year, for those who haven’t perused the new plans, the effort could pay off substantially.

“Because they’ve decided not to look … they’re leaving potentially thousands of dollars on the table,” Hatton said.

Beneficiaries who paid the most in the past for the best coverage or the lowest deductibles might reconsider that strategy, Hatton said. 

FEHB plans are all “comprehensive,” Hatton said, meaning, for the most part, “it’s going to cover health conditions that you have.” Once you know you have “good comprehensive coverage for what may come … then it becomes about how much risk are you taking on the deductible or on that out-of-pocket limit.”

At the 2026 rates, he suspects that “not everybody needs the lowest-deductible plan … with the most extensive coverage for everything under the sun.” Even if just for a year, “it’s reasonable to pay a lot less in premiums and still have good coverage.”

The savings might amount to hundreds if not “thousands of dollars a month,” Hatton said.

Open enrollment for FEHB ends at 11:59 p.m. in the location of the beneficiary’s electronic enrollment system on Monday, Dec. 8, 2025. 

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