The FED Weekly

The conversation focused on major developments affecting federal employees and retirees during the week of September 27 to October 3, 2026. A key theme that emerged was the significant rise in 2027 Federal Employees Health Benefits (FEHB) premiums, averaging a 10.9% increase for enrollees, with the third consecutive year of double-digit hikes. The discussion explored factors contributing to these increases, such as higher healthcare and prescription drug costs, and highlighted the importance of carefully reviewing plan options during Open Season, as changes vary widely by plan and by enrollee circumstances like Medicare coordination. Several points were raised, including OPM’s report of over $500 million in health benefits fraud prevention, new guidance to accelerate federal hiring processes, the end of the Army’s civilian hiring freeze, and updates on federal hiring questions following recent litigation. In labor relations, the Bureau of Prisons was ordered to restore its union contract, with a related lawsuit filed against the EPA over its own contract termination. The episode emphasized the evolving landscape for federal workers and retirees, urging vigilance during benefit elections and awareness of ongoing legal and procedural changes in federal employment and labor rights.