Most federal employees pick an FEHB plan based on the lowest premium. That is almost always the wrong way to choose. A high-deductible plan with a low premium may cost more total than a moderate-premium plan if you have even one significant health event. The only number that actually matters is total annual cost — premiums plus your expected out-of-pocket spending.
The government pays the lesser of: (1) 72% of the weighted average premium for your enrollment type, or (2) 75% of the total premium for the plan you choose. For 2026, the maximum biweekly government contribution is $324.76 for Self Only, $711.17 for Self Plus One, and $778.03 for Self and Family. Lower-cost plans often receive the full 75% — making them even cheaper than the premium alone suggests.
Section I FEHB Plan Comparison Tool
Enter plan details for up to three FEHB options. You can type any plan name and customize all fields. Use the Quick Load buttons to pre-fill benchmark plan data. Then enter your expected annual healthcare usage to see total cost.
Compare My FEHB Plans
Section II Government Contribution Rules for 2026
The government's contribution toward your FEHB premium is not a fixed dollar amount — it is calculated per plan using a formula that produces a cap based on the program-wide weighted average premium.
| Enrollment Type | 2026 Biweekly Max Gov't Contribution | Monthly Equivalent | Gov't Formula |
|---|---|---|---|
| Self Only | $324.76 | $703.65 | 72% of weighted avg |
| Self Plus One | $711.17 | $1,540.87 | 72% of weighted avg |
| Self & Family | $778.03 | $1,685.73 | 72% of weighted avg |
If 75% of your plan's total premium is less than the 72% weighted average amount above, the government pays 75% of your plan's premium instead. This is why low-cost plans are often even cheaper than they appear — the government absorbs more of the cost. For Self Only enrollment in 2026, 66 out of 132 FEHB plans qualify for the 75% government contribution.
Section III Understanding FEHB Plan Types
FEHB offers four basic plan structures. Understanding the trade-offs is essential before comparing premiums.
Four structures, very different cost dynamics
- Fee-for-Service (FFS) / PPO: Use any provider nationwide, no referrals required. Typically higher premiums but maximum flexibility. BCBS, GEHA, and MHBP are major FFS plans. Best for employees with established specialist relationships or who travel frequently.
- Health Maintenance Organization (HMO): Must use in-network providers. Generally lower premiums and out-of-pocket costs. Requires referrals for specialists. Only available in specific geographic areas — not nationwide. Best for employees who live near a strong HMO network.
- High Deductible Health Plan (HDHP): Lower premiums but higher deductible before coverage kicks in. Must be paired with a Health Savings Account (HSA) or FSAFEDS Limited Expense FSA. Best for healthy employees who rarely use healthcare — the premium savings can accumulate in an HSA tax-free.
- Consumer-Driven Health Plan (CDHP): Similar to HDHP but typically with a Health Reimbursement Arrangement (HRA) funded by the plan. Lower effective out-of-pocket but more complex structure. Evaluate total cost carefully including the HRA contribution.
Section IV Open Season Strategy
FEHB Open Season runs annually in November–December. Changes take effect January 1 of the following year. The 2025 Open Season (November 10 – December 8, 2025) set 2026 elections.
The low-premium trap
An employee enrolls in BCBS Blue Focus (Self Only) at $66.81/biweekly employee share. They have one specialist visit and one minor procedure in the year, incurring $2,800 in out-of-pocket costs before the HDHP deductible is met. Total annual cost: $66.81 × 26 + $2,800 = $4,537. Had they enrolled in BCBS Basic at $133.77/biweekly, the same events cost $133.77 × 26 + $500 (lower cost-sharing) = $4,000 — $537 less, despite the higher premium. The break-even depends entirely on healthcare usage.
Section V Frequently Asked Questions
Yes, if you meet two conditions: you must retire on an immediate annuity, and you must have been continuously enrolled in FEHB (or covered under FEHB as a family member) for the five years immediately before retirement. If you meet these conditions, you pay the same premiums as active employees — the government contribution continues. This is one of the most valuable retirement benefits in the federal package, as most private-sector workers lose employer-sponsored health coverage at retirement.
Self Plus One covers you and one eligible family member. Self and Family covers you and all eligible family members. Counterintuitively, some plans price Self Plus One higher than Self and Family — OPM identifies these plans each year. If you have one dependent, always check whether Self Plus One or Self and Family is cheaper for your specific plan. The tool's comparison automatically applies the enrollment type you select to the government contribution calculation.
No. FEHB premiums are deducted from your gross pay but are not part of your basic pay for FERS pension purposes. However, FEHB premiums are generally excluded from federal income tax under a premium conversion arrangement, reducing your taxable income. They are also not subject to Social Security and Medicare taxes (FICA) for most employees enrolled in premium conversion.
For healthy employees who rarely use healthcare, the HDHP premium savings can be deposited into an HSA and invested — growing tax-free. Over a 10-year federal career, a healthy employee who saves the premium differential in an HSA can accumulate $15,000–$30,000 in tax-free healthcare savings. The HSA triple tax advantage (pre-tax contributions, tax-free growth, tax-free withdrawals for medical expenses) makes it one of the most powerful savings tools available. The risk is a high-cost health event that exhausts the deductible and out-of-pocket maximum before your HSA balance is sufficient to cover it.
The official 2026 FEHB premium rates for all plans and enrollment types are available at OPM.gov under Healthcare & Insurance → Healthcare → Plan Information → Premiums. You can also use OPM's FEHB Plan Comparison Tool at OPM.gov to compare plans by premium, deductible, and benefits in your geographic area. Always verify premiums against the official OPM premium rate charts before making an enrollment decision — the benchmark plans in this tool are illustrative starting points.