Why More Federal Workers Are Upgrading Their Benefits During Open Season

Key Takeaways

1. Open Season is your annual opportunity to adjust your benefits and optimize your retirement, health, and financial security.

2. Understanding your options and acting during this time can lead to significant savings and better alignment with your needs.

What Is Open Season, and Why Should You Care?

Every year, Open Season gives federal employees and retirees the chance to make critical changes to their benefits. This period, running from mid-November to mid-December, is when you can reassess your health plans, life insurance, and other benefits to ensure they meet your current and future needs. Missing this window means waiting another year for adjustments, so taking action now is vital.

The stakes are higher than ever in 2025. Rising healthcare costs, increased FEHB premiums, and new program updates make this the perfect time to revisit your choices. Are you making the most of what’s available?

Why Are More Federal Workers Upgrading Their Benefits?

Federal employees and retirees are increasingly proactive about maximizing their benefits during Open Season. Here’s why:

1. Rising Costs and Premium Adjustments

In 2025, FEHB premiums have risen by an average of 11.2%, with enrollees experiencing a 13.5% increase. As costs climb, upgrading to plans with better coverage or aligning them with Medicare can help you save in the long term. Many federal workers are opting for high-deductible plans paired with Health Savings Accounts (HSAs) to offset rising premiums while benefiting from tax advantages.

2. Enhanced Coordination with Medicare

For retirees, enrolling in Medicare Part B and coordinating it with FEHB offers cost-saving opportunities. Many FEHB plans waive deductibles and reduce copayments for those enrolled in Medicare, making this combination a compelling choice. The introduction of Medicare Part D changes, including the new $2,000 out-of-pocket cap for prescription drugs, adds another layer of financial relief for those managing chronic conditions.

3. Expanded Coverage Options

Open Season 2025 introduces updated FEDVIP options, offering better dental and vision plans. These upgrades cater to both preventive care and specialized treatments, ensuring that enrollees have access to comprehensive services at predictable costs. If you’ve been delaying dental or vision upgrades, now is the time to evaluate these plans.

4. Adjustments for Life Changes

Life events like marriage, retirement, or adding dependents can make your current plan outdated. Open Season is the perfect time to adapt your benefits to fit your new circumstances. Even if your life circumstances haven’t changed, periodic adjustments ensure your benefits align with your evolving priorities.

How to Navigate Your Options During Open Season

With so many choices available, it’s easy to feel overwhelmed. Here’s a simple roadmap to help you make informed decisions:

Step 1: Review Your Current Benefits

Start by taking a close look at your current coverage. Identify areas where your needs have changed. For example, are your healthcare costs higher than expected? Do you need enhanced dental or vision care? Analyzing your usage over the past year can highlight gaps.

Step 2: Explore New Plan Options

Each year, OPM releases updated plan brochures during Open Season. These materials outline changes to premiums, deductibles, and covered services. Compare these details with your current plan to identify options that offer better value.

Step 3: Align Health Plans with Retirement

If you’re nearing retirement, consider how your health plan coordinates with Medicare. For example, PSHB plans for postal workers now integrate with Medicare, offering reduced costs and expanded coverage. Knowing how your benefits transition into retirement ensures long-term peace of mind.

Step 4: Use Available Tools

OPM’s plan comparison tools are invaluable for side-by-side evaluations of costs, benefits, and coverage. Use these resources to understand your options better and ensure you’re making data-driven decisions.

Common Upgrades Federal Workers Are Making in 2025

Federal employees and retirees are prioritizing the following areas:

1. Health Insurance

Rising premiums have made high-deductible health plans with HSAs more appealing. These accounts allow you to save pre-tax dollars for qualified medical expenses, offering both flexibility and tax advantages. Additionally, retirees are leaning on Medicare integration for better financial predictability.

2. Life Insurance

FEGLI enrollees often reassess their coverage during Open Season. As premiums increase with age, federal workers are choosing to either adjust their coverage levels or explore supplemental options to ensure adequate protection for their families.

3. Dental and Vision Plans

With expanded FEDVIP options, federal employees are upgrading to plans that include enhanced orthodontic coverage, cosmetic dentistry, or premium lenses. These upgrades address both routine and specialized needs without breaking the bank.

4. Flexible Spending Accounts (FSAs)

The 2025 FSA contribution limit has increased to $3,300, making it an excellent way to save on out-of-pocket medical and dependent care expenses. If you’re not using an FSA, you’re leaving valuable savings on the table.

Key Deadlines and What Happens If You Miss Them

Open Season isn’t just an opportunity—it’s a deadline. Missing the mid-December cutoff means you’re locked into your current plan for another year unless you experience a Qualifying Life Event (QLE).

Important Dates:

• Open Season Start: November 11, 2025

• Open Season End: December 13, 2025

If you miss these dates, you could face higher costs or inadequate coverage. Acting now ensures you’re prepared for the unexpected.

Tips for Making the Most of Open Season

Here are some practical tips to help you maximize your benefits:

1. Start Early: Don’t wait until the final week of Open Season. Early research gives you time to make well-informed decisions.

2. Ask Questions: Reach out to your HR office or plan representatives for clarifications. They can provide insights into how plan changes impact your specific needs.

3. Think Long-Term: Focus on plans that align with your future goals, not just immediate savings. For example, pairing Medicare with your FEHB plan can yield lasting benefits.

4. Budget Wisely: Factor in premiums, deductibles, and out-of-pocket expenses when comparing plans. The lowest premium isn’t always the most cost-effective.

5. Consider Supplemental Coverage: FEDVIP and life insurance adjustments can fill gaps in your existing coverage.

The Benefits of Proactive Planning

Upgrading your benefits during Open Season isn’t just about reacting to rising costs. It’s about taking control of your financial future. By evaluating your options, you can:

• Reduce healthcare costs through better coordination with Medicare.

• Improve access to specialized care like dental and vision.

• Protect your family’s financial security with adjusted life insurance.

• Save more pre-tax dollars with increased FSA limits.

The key is to think beyond the immediate impact and plan for long-term stability and peace of mind.

Act Now to Secure Your Future

The changes you make during Open Season can have a lasting impact on your retirement and overall well-being. Don’t let this opportunity pass you by. With rising costs, evolving healthcare needs, and new program updates, there’s never been a better time to upgrade your benefits. Start exploring your options today to ensure you’re prepared for whatever comes next.