FEHB & Medicare Coverage Gaps & Costs

OPM is asking whether to cut FEHB plans

Nothing changes for 2027. Comments close November 16.

What you need to know
Nothing
changes now
It is a request for information, not a rule
3
options today
Per carrier, or two plus a high-deductible plan
Nov 16
comment deadline
Through regulations.gov

Your 2027 plan is not affected. Open Season runs November 9 to December 14 on the existing menu. Any real change would need a separate proposed rule, with its own comment period, before it could apply to a later year.

Jump to a section
  1. What OPM actually published
  2. The rule it is questioning
  3. Why now
  4. What could change, and what could not
  5. How to comment
  6. What to do for 2027
  7. Frequently asked questions
Sep 15
Published in the Federal Register, 91 FR 58388
OPM
66%
Of surveyed enrollees who rated FEHB good or excellent value
OPM 2023 survey
12.3%
Average premium increase for 2026, after 13.5% for 2025
OPM
PSHB
Postal Service plans are included in the review
OPM

1. What OPM actually published

On September 15, 2026, OPM published a request for information titled Federal Employees Health Benefits Program: Optimizing FEHB Plan Offerings. It asks how the program's plan options should be structured to give enrollees high-value choices at competitive cost, and whether the current number and distribution of options is right.

The single most important fact about it: a request for information changes nothing. It does not alter any plan, premium, benefit, or enrollment rule. It is the step an agency takes before deciding whether to propose a rule at all. OPM says it will use what it learns to judge whether to pursue changes through future notice-and-comment rulemaking — a separate document, published separately, with its own comment period.

The review covers the Postal Service Health Benefits program as well as FEHB.

2. The rule it is questioning

Under 5 CFR 890.201(b)(3)(i), each carrier can offer at most:

StructureWhat a carrier may offer
StandardUp to three options
With an HDHPTwo options plus one high-deductible health plan

That cap is per carrier. Across all carriers, the result is the long menu enrollees see each Open Season.

Notice what the request does and does not say. It does not announce an intention to reduce the menu. It explicitly leaves more, fewer, or different options on the table — and it follows two earlier rule changes that went the other way, expanding carriers' flexibility. So "OPM is cutting plans" overstates it. "OPM is openly considering whether the menu should be smaller" is accurate.

3. Why now

Premiums. The average total premium rose 13.5% for 2025 and 12.3% for 2026, two consecutive double-digit years. Plan structure is one lever OPM can examine without touching the government contribution formula.

Value. OPM's 2023 Federal Employee Benefits Survey found 90% of respondents considered the program's availability important and 94% felt it met their needs — but only 66% called it good or excellent value. That gap is the problem the request is aimed at.

Policy. OPM's FY 2026–2027 performance plan includes an objective to set evidence-based criteria for the appropriate number and distribution of health plan options. This request is the fact-finding step for that objective.

4. What could change, and what could not

QuestionAnswer
Does anything change for 2027?No — rates and benefits were negotiated over the summer
Could my plan eventually be dropped?Possibly, in a later year, if a rule is proposed and finalized
Could options be added instead?Yes — the request leaves that open
Does it change the government contribution?No — that formula is set by statute
Does it affect carrying FEHB into retirement?No — the five-year rule is untouched

If your plan were eventually withdrawn, you would not lose coverage. Enrollees in a discontinued plan get the chance to choose another, just as happens now when a carrier leaves the program. The practical risk is being moved off a plan that suits you — a particular network or formulary tier — rather than losing FEHB itself.

Who has the most at stake

Enrollees on smaller regional plans or narrow options that exist precisely because the current cap lets carriers offer several. If the menu consolidates, those are the options most likely to be affected. If you are on one and it works for you, that is worth saying in a comment.

5. How to comment

6. What to do for 2027

Nothing in this request should change your Open Season decision. Choose the 2027 plan on its own merits.

Compare twelve months of premium plus twelve months of expected out-of-pocket cost rather than the premium line alone, check your prescriptions' formulary tiers, and confirm your doctors are in network. Those comparisons are covered in FEHB 2027: what changes and the enrollment tier guide.

If you are within five years of retiring, the only rule that matters here is continuity: switching plans is fine, a gap in enrollment is not. See the five-year rule.

7. Frequently asked questions

Is OPM cutting FEHB plans?

Not yet, and not directly. OPM published a request for information on September 15, 2026 asking whether the number and type of plan options should change. A request for information is a fact-finding step, not a rule: it changes no plan, premium, benefit or enrollment rule. Any actual change would require a separate proposed rule with its own comment period before it could take effect.

Will this affect my 2027 coverage?

No. The 2027 plan year was negotiated with carriers over the summer, and Open Season runs November 9 to December 14, 2026 on the existing plan menu. The earliest any change resulting from this request could apply is a later plan year, and only after further rulemaking.

What is the current limit on plan options?

Under 5 CFR 890.201(b)(3)(i), each FEHB carrier may offer up to three options, or two options plus a high-deductible health plan. The request for information asks whether that structure still makes sense, and explicitly leaves more, fewer, or different options on the table.

How do I comment?

Through the Federal eRulemaking Portal at regulations.gov, searching for the notice titled Federal Employees Health Benefits Program: Optimizing FEHB Plan Offerings. Comments must be received by November 16, 2026. Submissions are generally posted publicly as received, including any personal information you include, so leave out anything you would not want published.

Why is OPM doing this now?

The request follows two consecutive years of double-digit premium increases, 13.5 percent for 2025 and 12.3 percent for 2026, and ties to an objective in OPM’s performance plan to set evidence-based criteria for the right number and distribution of plan options. OPM’s own survey data found most enrollees consider the program important and meeting their needs, but a much smaller share rate it as good value.

Sources
  1. OPM, Optimizing FEHB Plan Offerings, request for information, 91 FR 58388 (September 15, 2026)
  2. 5 CFR part 890, including 890.201(b)(3)(i), limits on plan options
  3. Federal eRulemaking Portal, regulations.gov
  4. OPM, Federal Benefits Open Season
  5. OPM, FEHB premiums