FEHB Guide 2026
Everything federal employees need to know about the Federal Employees Health Benefits Program: plan types, costs, retirement considerations, and Open Season strategies.
Compare 2026 FEHB Plans & Premiums
Filter 300+ plans, see active vs retiree costs, find the best value.
What is FEHB?
The Federal Employees Health Benefits (FEHB) program is the health insurance system for federal employees, retirees, and their families. It's one of the largest employer-sponsored health insurance programs in the world, covering over 8 million people.
Key benefits of FEHB:
- Portability: Coverage continues into retirement if you meet the 5-year rule
- Choice: Hundreds of plans from national carriers and local HMOs
- No pre-existing condition exclusions: All plans accept all enrollees
- Family coverage: Self Only, Self Plus One, or Self and Family options
FEHB Plan Types
HMO Plans
- ✓ Lower premiums
- ✓ Lower out-of-pocket costs
- ✗ Must use network doctors
- ✗ Need referrals for specialists
- ✗ Limited geographic coverage
Examples: Kaiser Permanente, GEHA Elevate
PPO/Fee-for-Service
- ✓ See any doctor without referral
- ✓ Nationwide coverage
- ✓ Out-of-network option (at higher cost)
- ✗ Higher premiums
- ✗ Higher deductibles
Examples: Blue Cross Blue Shield, Aetna
HDHP with HSA
- ✓ Lowest premiums
- ✓ HSA contributions are tax-free
- ✓ HSA rolls over year to year
- ✗ High deductible before coverage kicks in
- ✗ Risk if you have major health expenses
Examples: GEHA HDHP, Aetna HealthFund
Enrollment Types
FEHB offers three enrollment options based on who you need to cover:
Self Only
Covers you only. Lowest premium. Best for single employees without dependents.
Self Plus One
Covers you + one family member (spouse OR one child). Good for couples without children.
Self and Family
Covers you + all eligible family members. Required if covering spouse AND children.
How FEHB Premium Costs Work
The government pays a substantial portion of your FEHB premium. Here's how it works:
Government Contribution Formula
Government pays the LESSER of:
• 72% of the weighted average premium for all plans, OR
• 75% of your specific plan's premiumThis means cheap plans = government pays up to 75%. Expensive plans = government contribution is capped.
For active employees: Premiums are deducted pre-tax from your paycheck, reducing your taxable income.
For retirees: Premiums are deducted from your pension. You pay the same percentage as active employees, but high-premium plans can cost more because of the contribution cap.
2026 Government Contribution Limits
| Enrollment Type | Biweekly Max | Monthly Max | Annual Max |
|---|---|---|---|
| Self Only | $324.76 | $703.65 | $8,444 |
| Self Plus One | $711.17 | $1540.87 | $18,490 |
| Self and Family | $778.03 | $1685.73 | $20,229 |
2026 Premium Increase
Average enrollee share of 2026 FEHB premiums increased by 12.3% from 2025. This is the second consecutive double-digit increase. Shop around during Open Season to find better value.
Open Season Tips
FEHB Open Season runs from mid-November through mid-December each year. During this time, you can enroll, change plans, or cancel coverage. Changes take effect January 1.
How to Choose the Right Plan
- Estimate your healthcare needs: How often do you see doctors? Take medications? Expect any procedures?
- Check network coverage: Make sure your preferred doctors and hospitals are in-network
- Compare total costs: Premium + deductible + copays + coinsurance = total annual cost
- Consider prescription coverage: If you take expensive medications, check the drug formulary
- Plan for retirement: If retiring soon, compare retiree costs, not just active employee costs
FEHB in Retirement
The 5-Year Rule
To continue FEHB into retirement, you must be enrolled in FEHB for the 5 consecutive years immediately before retirement. This is non-negotiable. If you have a break in coverage or weren't enrolled, you lose FEHB eligibility at retirement.
Critical Warning
If you're planning to retire within 5 years, DO NOT cancel FEHB coverage, even if you have alternative coverage (spouse's plan, TRICARE, etc.). Maintain enrollment to preserve eligibility.
Retiree Costs
Retirees pay the same percentage as active employees. However, the government contribution is capped at the maximum amounts (see table above). If you have a high-premium plan, your share will be higher as a retiree.
Pro tip: Before retirement, compare what you pay NOW vs what you'll pay as a retiree for your current plan. Consider switching to a lower-cost plan if the difference is significant.
The survivor annuity FEHB trap
If you elect zero survivor annuity at retirement to keep more of your monthly check, your spouse loses FEHB coverage at your death. There are only 3 narrow exceptions (both-fed couple, court-ordered former spouse, BEDB direct-pay). For most couples, the math runs roughly 8:1 against the spouse. The 10% survivor election cost is almost always the right call once you account for FEHB continuation value.
Run the survivor + FEHB tradeoff math →FEHB and Medicare
At age 65, you become eligible for Medicare. You can keep FEHB, enroll in Medicare, or have both. Here's what to know:
Keeping FEHB Only
You're NOT required to enroll in Medicare. FEHB alone provides comprehensive coverage. However, you'll miss out on Medicare Part A (hospital), which is premium-free if you have enough Social Security credits.
FEHB + Medicare Together
Many retirees keep both. Medicare becomes primary (pays first), FEHB becomes secondary (pays remaining costs). This combination often results in very low out-of-pocket costs.
- Medicare Part A (Hospital): Usually free. Enroll at 65 even if keeping FEHB.
- Medicare Part B (Medical): Monthly premium (~$185/month in 2026). Optional if you have FEHB.
- Medicare Part D (Drugs): Usually NOT needed if you have FEHB with drug coverage.
Tip: Some FEHB plans offer premium reductions if you're enrolled in Medicare. Check your plan's brochure for "Medicare Advantage" or "Medicare coordination" benefits.