FEHB Terminating Plans 2027: An Agency Outreach Guide

FEHB terminating plans for 2027 include nine FEHB options and one PSHB option that will not be offered next year. Employees enrolled in one of them must pick a new plan between November 9 and December 14, 2026. Anyone who does nothing will be moved into a default plan chosen by OPM: Compass Rose Standard for FEHB, or FEP Blue Focus for PSHB. Agency benefits offices are in the best position to make sure every affected employee makes a deliberate choice instead.

Which FEHB terminating plans end in 2027

The OPM plan year 2027 open season highlights list these FEHB options as unavailable in 2027:

OPM's instruction is direct: enrollees in these plans must select a new plan during open season, or they will be automatically enrolled in Compass Rose Standard.

The PSHB option that is ending

For postal employees and annuitants, one PSHB option is ending: UnitedHealthcare Choice Plus Primary Postal East. Its service area covers Alabama, Arkansas, the District of Columbia, Florida, part of the Atlanta metropolitan area in Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia. Enrollees who do not choose will be placed in the Blue Cross and Blue Shield Service Benefit Plan's FEP Blue Focus option.

Why a default enrollment is not a plan

A default enrollment keeps people covered. That is its only purpose. It does not consider an employee's doctors, prescriptions, family size, or how much care the household expects to use.

For 2027 the stakes are higher than usual. OPM reports that the average FEHB enrollee share of premium is rising 10.9% and the average PSHB enrollee share is rising 8.2%. An employee who lands in a default plan without comparing options may pay more than necessary, or may find that a regular doctor is out of network in January.

There is still plenty of choice. For 2027, OPM says FEHB will have 45 carriers offering 118 plan options and PSHB will have 17 carriers offering 65 plan options.

A four-step outreach plan for benefits offices

Step 1: Identify affected enrollees early

Run a report of current enrollments by plan code and flag everyone in one of the terminating options. Do this in the first week of open season so there is time for more than one contact. Your payroll provider or HR system administrator can help produce the list.

Step 2: Send a targeted notice, not a mass email

A general open season email is easy to skip. A short, personal message that says "your plan is ending" gets read. Include:

• The name of the plan that is ending.
• The default plan they will be placed in if they do nothing.
• The open season deadline, December 14, 2026.
• Where to compare plans and where to get help.

Step 3: Follow up before the deadline

Check the enrollment report again in early December. Anyone still showing a terminating plan code has not made a choice yet. A second message, or a phone call, in the first week of December is often enough to prompt action.

Step 4: Prepare for January questions

Employees who switch plans will have questions about ID cards and claims in early January. For non-postal FEHB employees, open season changes take effect January 10, 2027. OPM's shutdown furlough guidance explains that when a plan terminates, the new plan's coverage begins on the first day of the first pay period beginning on or after January 1. The terminating plan is responsible for covered services before that date. Our post on 2027 open season effective dates has the full table.

Sample notice for affected employees

Your FEHB plan option will not be offered in 2027. To keep coverage that fits your needs, choose a new plan during Open Season, November 9 through December 14, 2026. If you do not choose, OPM will automatically enroll you in Compass Rose Standard. Compare plans and premiums on OPM's website, and contact the benefits office if you would like help.

For PSHB enrollees, change the default plan name to FEP Blue Focus and point them to the PSHB enrollment system.

What employees should compare

When an employee asks "which plan should I pick?", the benefits office cannot recommend a specific plan. It can explain what to compare:

• Total cost, meaning the premium plus expected deductibles, copays and coinsurance.
• Provider network, especially for a primary care doctor, specialists and nearby hospitals.
• Prescription drug coverage, including the formulary tier for each regular medication.
• Enrollment type, since the right choice between Self Only, Self Plus One and Self and Family depends on the household.
• Plan type, such as fee-for-service, HMO or a high deductible plan with an HSA.

OPM's open season page links to plan comparison tools, brochures and 2027 rates.

A suggested outreach timeline

Open season lasts five weeks. A simple timeline keeps terminating plan outreach on track.

The Thanksgiving week is a natural slow period, so front-load the first notice. Federal funding currently runs through December 11, 2026, which is another reason to aim for decisions before the last few days of the season.

Special situations to watch

• Employees on extended leave. People on parental leave, military leave or leave without pay may not see a work email. Use a mailing address or personal contact information if your agency policy allows.
• Employees in an HDHP. One terminating option, Independent Health HDHP, is a high deductible plan. Enrollees with a health savings account should understand how a move to a non-HDHP plan would affect their eligibility to contribute to an HSA in 2027.
• New hires. Employees who enrolled in a terminating plan recently may not realize it is ending. Include them in the report.
• Employees who moved. Some terminating options are regional. An employee who moved since enrolling may already be outside the plan's area and should choose a plan that works where they live now.

Retirees and family members

Retirees in a terminating plan face the same default rule. Annuitants make their open season changes through OPM Retirement Services rather than their former agency, but agencies that run retiree outreach can still share the plan list and the deadline. FEHB annuitant changes take effect January 1, 2027.

Employees who add a family member while switching plans must also provide documentation, a new requirement for plan year 2027. Our post on family member verification explains what to expect.

Put it in your communications plan

Terminating plan outreach fits naturally into a broader open season campaign. Our open season communications checklist covers timing and channels for the rest of the workforce.

FEBA works with agencies to deliver open season briefings that explain plan choices in plain language. To schedule a session for employees in affected plans, contact our team.

Questions

Which FEHB plans are terminating for 2027?

OPM lists nine FEHB options that will not be available in 2027: Independent Health Standard, Independent Health HDHP, Blue Care Network of Michigan Southeast High, UHC Choice Primary West High, UHC Choice Plus Primary West High, Health Net of California Northern High, and Health Net of California Southern Standard, Basic and High.

What happens if an enrollee in a terminating FEHB plan does nothing?

OPM says enrollees in a terminating FEHB plan must select a new plan during open season or they will be automatically enrolled in the designated default plan, Compass Rose Standard.

Which PSHB plan is terminating for 2027?

UnitedHealthcare Choice Plus Primary Postal East will not be available in 2027. Enrollees who do not choose a new plan will be automatically enrolled in FEP Blue Focus, the Blue Cross and Blue Shield Service Benefit Plan option OPM designated as the default.

Is the default plan the right choice for most people?

Not necessarily. The default protects people from losing coverage, but it was not chosen for any individual. Each enrollee should compare premiums, networks, drug coverage and out-of-pocket costs before December 14, 2026.

When does the new plan start for employees in a terminating plan?

For non-postal FEHB employees, open season changes take effect January 10, 2027. The terminating plan covers services before the new plan begins. PSHB and FEHB annuitant changes take effect January 1, 2027.

Federal Employee Benefits Advocates is an independent educational organization. This article is not a government publication and is not official guidance from OPM or any federal agency.

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