FEHB Open Season 2027 in Maryland: A Montgomery County Checklist

[Alvin Carlos, CFA, CFP®]

FEHB open season for 2027 runs from November 9 through December 14, 2026. For a lot of Montgomery County households, this year’s decision carries more weight than usual. OPM reports the average enrollee share of FEHB premiums will rise 10.9% for 2027, after a 12.3% increase for 2026. On the state side, Maryland regulators approved an average 14.6% increase in unsubsidized individual-market premiums for 2027.

There is also a group of county residents facing a choice they have never had to make. Former federal employees now on Temporary Continuation of Coverage (TCC) can compare their FEHB plan against a Maryland Health Connection plan, during two enrollment windows that overlap for five weeks.

I’m Alvin Carlos, founder of District Capital Management, a fee-only fiduciary financial planning firm in Washington, DC. Federal employee planning is one of our core specializations, and open season is when benefit decisions, tax accounts, and household cash flow collide. This checklist is written for the NIH, FDA, NIST, NRC, and Walter Reed families who make up so much of Montgomery County, and for those who recently left federal service.

Key Takeaways

• The dates. FEHB open season for 2027 coverage runs November 9 through December 14, 2026. Most non-postal employee changes take effect January 10, 2027.
• The overlap window. Maryland Health Connection open enrollment runs November 1, 2026 through January 15, 2027, so both windows are open at the same time from November 9 to December 14. I call this the Overlap Window.
• Active employees. For most active federal employees, FEHB is the better deal, and the marketplace is not a real alternative because FEHB is subsidized employer coverage.
• Discontinued plans. Nine FEHB plans and one Maryland-area postal plan are not returning for 2027. If you are in one and do nothing, OPM assigns you a default plan. • Former employees on TCC. The answer depends on projected 2027 household income. TCC costs the full premium plus 2% with no subsidy.
• New for 2027. Anyone adding a family member during open season must submit eligibility documentation, and FSAFEDS still requires re-enrollment every year.

When is FEHB open season for 2027 coverage, and when do changes take effect?

The Federal Benefits Open Season for the 2027 plan year runs Monday, November 9 through Monday, December 14, 2026 (OPM Open Season Highlights, 2027 Plan Year). During that window, you can enroll in, change, or cancel FEHB, PSHB, and FEDVIP coverage, and active employees can enroll in FSAFEDS.

If you do nothing, your health, dental, and vision coverage carries into 2027 automatically unless the plan is leaving the program. Your flexible spending account does not carry over.

The calendar below puts the federal dates next to Maryland Health Connection’s, because Montgomery County households often need both.

The two enrollment windows overlap for five weeks, so a household on TCC can price both options side by side before either deadline hits.

Date	What happens	Who it affects
Early November 2026	Full 2027 FEHB/PSHB brochures and OPM’s plan comparison tool go live	Everyone comparing FEHB plans
November 9, 2026	FEHB open season	Employees, annuitants, TCC enrollees
December 14, 2026	FEHB open season	Employees, annuitants, TCC enrollees
December 31, 2026	Last day to pick a	Marketplace shoppers
January 1, 2027	PSHB, annuitant,	Postal employees,
January 10, 2027	FEHB changes take	Active federal
January 15, 2027	Maryland Health	Marketplace shoppers

November 1, 2026

Maryland Health

Connection open

enrollment begins

Marketplace shoppers, including former feds on TCC

begins (the Overlap Window opens)

ends

Maryland Health

Connection plan for a January 1 start

FEDVIP, and FSAFEDS elections take effect

retirees, all

FEDVIP/FSAFEDS

enrollees

effect for non-postal employees

employees

Connection open

enrollment ends

Caption: FEHB open season 2027 and Maryland Health Connection 2027 key dates. Sources: OPM Open Season Highlights, 2027 Plan Year; Montgomery County DHHS and Maryland Health Connection. As of October 2026.

What is changing in FEHB for 2027?

The biggest change for 2027 is cost: OPM puts the average enrollee share increase at 10.9%, while the government’s contribution rises 8.6% (OPM Highlights, 2027). Overall premiums rise 9.3% on average, so the enrollee share is growing faster than the plan itself. That is a function of how the government contribution is calculated: it is the lesser of 72% of the program-wide weighted average premium or 75% of your specific plan’s premium.

That average hides a wide spread. Your plan could rise far less or far more than 10.9%, which is exactly why the average is the wrong number to plan around.

Other 2027 changes worth knowing:

• Some plans are leaving. Nine FEHB plans will not be offered in 2027. Enrollees who do not pick a new plan are moved to a default, which for plans leaving FEHB entirely is Compass Rose Standard. MHBP is also ending its Value Plan and Consumer Option, though MHBP itself stays in the program. Check OPM’s 2027 significant events tables before assuming your plan continues.
• Documentation to add family members. Under the FEHB Protection Act of 2025, anyone adding a spouse or child during open season must submit proof of the family member’s eligibility. If you married or had a child this year and are adding them now, gather the marriage or birth certificate before you log in.
• Weight-loss medication rules. Plans must still cover at least one GLP-1 anti-obesity medication. For 2027, though, every carrier will require documented participation in an intensive behavioral therapy program before and during treatment.FSAFEDS debit card. For the first time, you can choose a FSAFEDS Visa card for health care FSA spending instead of paper reimbursement.
• A Maryland postal plan is ending. The PSHB plan UnitedHealthcare Choice Plus Primary Postal East, which serves Maryland, DC, and Virginia, will not be offered in 2027. Enrollees who do not choose a new plan will be moved to FEP Blue Focus by default.

For 2027, OPM reports 45 carriers offering 118 FEHB plan options. More choice is useful only if you actually compare.

What should Montgomery County federal employees check before December 14?

The short answer is to check four things, in this order: whether your plan is still offered, your plan’s 2027 premium, your doctors, and your total expected cost. Then handle your FSA.The pattern I see most often in open season is quiet inertia: the plan renews because nobody opened the 2027 brochure. Here is the checklist I would work through.

1. Confirm your plan is still offered. If your plan or option is on OPM’s 2027 discontinued list, choose your replacement yourself rather than accepting the default.
2. Pull your plan’s actual 2027 rate. Look up your plan and enrollment type (Self Only, Self Plus One, or Self and Family) on OPM’s 2027 premium charts. Compare it against at least two alternatives, including one HMO with strong local coverage.
3. Confirm your local network. Check that your primary care doctor and the hospital you would actually use, whether that is Suburban, Holy Cross, Shady Grove, or MedStar Montgomery, are in network for 2027. Networks change, and the 2026 directory is not proof.
4. Price total cost, not just premium. Add your annual premium to a realistic out-of-pocket estimate based on your household’s actual use last year. A cheaper premium with a higher deductible only wins if you stay healthy.
5. Re-check your enrollment type. If a child aged out at 26 or your spouse gained coverage at work, Self Plus One may now fit better than Self and Family. 6. Have documents ready if adding anyone. The new 2027 verification step applies to open season additions.
6. Re-enroll in FSAFEDS.

Dependent care FSA: The limit is $7,500 per household, or $3,750 if married filing separately, under the 2025 tax law, and FSAFEDS has adopted it. Two federal employees married to each other share one $7,500 household limit. Contributions are also capped at the lower-earning spouse’s earned income.

Health care FSA: As of this writing, the IRS has not announced the 2027 limit. It was $3,400 for 2026, and FSAFEDS will apply the 2027 figure once it is published.

1. If you choose an HDHP, fund the HSA on purpose. For 2027, HSA limits are $4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up at 55 (IRS Rev. Proc. 2026-24). An HSA can be a strong long-term account, which I cover in how to decide whether to fund an HSA or a Roth IRA first.
2. Mind the five-year rule if retirement or separation is on your radar. To carry FEHB into retirement, you generally need to be enrolled for the five years immediately before you retire. Canceling FEHB to save money now can cost you retiree health coverage later.

In our work with federal employees, the HDHP decision is where I see the most money left on the table in both directions: healthy households paying for coverage they rarely use, and households with predictable medical costs choosing an HDHP for the tax break and paying

more overall. We generally advise against picking an HDHP solely for the HSA if you expect heavy claims.

Can an active federal employee use Maryland Health Connection instead of FEHB?

For most active federal employees, no, not in a way that makes financial sense. All FEHB plans meet the Affordable Care Act’s minimum value standard (OPM), and an offer of affordable, minimum-value employer coverage generally makes you ineligible for marketplace premium tax credits. Buying a Maryland Health Connection plan at full price would usually mean giving up a government contribution of up to 75% of your premium.

The “FEHB vs Maryland Health Connection” comparison becomes real in three situations: after you separate from federal service, when a spouse or adult child needs their own coverage, or when your TCC is about to run out.

Should you stay on TCC or switch to Maryland Health Connection for 2027?

If your projected 2027 household income qualifies you for federal premium tax credits or Maryland’s state help, a Maryland Health Connection plan is worth pricing seriously against TCC. If your income will stay high, or you are mid-treatment with doctors in your current FEHB network, TCC’s continuity can justify its cost.

TCC lets a separating federal employee keep FEHB for up to 18 months, but you pay the full premium (both the employee and government shares) plus a 2% administrative charge (OPM TCC overview). Because the government covers up to 75% of an active employee’s premium, TCC can cost up to roughly four times what you paid as an employee for the same plan.

Here is how the three options compare for 2027. In short, TCC buys continuity at full price, while a Maryland Health Connection plan’s price depends almost entirely on your 2027 income.

Who pays the	FEHB (active	TCC (former	Maryland
Income-based	Not applicable	None	Federal tax

premium
employee)

Government

pays the lesser of 72% of the

program-weight ed average or

75% of your

plan’s premium
employee)

You pay 100% of the premium

plus a 2%

administrative charge
Health

Connection

plan

You pay, reduced by federal

premium tax

credits and

Maryland state help if eligible

help

credit up to

400% of the

FEHB (active	TCC (former	Maryland
Tax treatment of premiums	Pre-tax through premium	Paid directly,	Paid after tax,
How long it lasts	While employed; can continue into retirement if	Up to 18 months after separation	No time limit
When you can enroll or switch	Open season	Elect within 60 days of	Open enrollment (Nov 1, 2026 to Jan 15, 2027) or a 60-day special enrollment
Plans and	118 FEHB plan options,	Same FEHB	Maryland

employee) employee) Health

Connection

plan

federal poverty level; Maryland Premium

Assistance; extra state help for

ages 18 to 37

[VERIFY 2027

terms]

conversion

after tax

[VERIFY]

but credits

reduce the cost

eligible

(Nov 9 to Dec 14, 2026) or a

qualifying life

event

separation or

notice; change plans at open

season

period after

losing coverage

networks

including

national

fee-for-service plans

plans

carriers such as CareFirst, Kaiser Permanente,

UnitedHealthcar e, and Wellpoint

Caption: FEHB vs TCC vs Maryland Health Connection for 2027 coverage in Maryland. Sources: OPM Open Season Highlights 2027; OPM TCC overview; Maryland Insurance Administration; Maryland Health Connection. As of October 2026.

How do TCC and Maryland Health Connection enrollment rules interact?

The timing rules matter as much as the price. Losing FEHB when you separate opens a 60-day special enrollment period on the marketplace, so you can skip TCC and go straight to Maryland Health Connection. Once you are enrolled in TCC, though, you are generally not eligible for premium tax credits, and voluntarily dropping TCC midyear generally does not open a new special enrollment period.

That makes the Overlap Window your clean switching point. During Maryland Health Connection open enrollment, you can choose a marketplace plan to start January 1 and end TCC effective December 31, with no gap and no mid-year deductible reset. Coordinate the TCC cancellation date with the National Finance Center or your former agency so the two coverages line up. If you stay on TCC, you can still use open season to move to a cheaper FEHB plan. And when your 18 months of TCC run out, that exhaustion opens a marketplace special enrollment period.

What income does Maryland Health Connection actually look at?

Marketplace subsidies are based on your projected household income for the coverage year, which for this decision means 2027, not the federal salary you earned before separation. Severance, unemployment benefits, a new job, consulting income, and a spouse’s earnings all count toward that projection.

The most common mistake I see among separated federal employees is pricing the marketplace off last year’s federal salary instead of next year’s actual income. Run Maryland Health Connection’s estimate tool with a realistic 2027 number, then update it during the year if your income changes, since the credit is reconciled on your tax return.

A hypothetical example: a Rockville couple on TCC

(Hypothetical and illustrative only. Not an actual client.) Consider a Rockville couple in their early 40s. One spouse left an HHS position in mid-2026 and elected TCC with Self Plus One coverage. The other runs a small consulting practice with uneven income, and the household expects 2027 income to be well below their 2025 level.

Their process during the Overlap Window looks like this:

1. Look up the full 2027 Self Plus One premium for their current FEHB plan on OPM’s rate chart, then add 2% to get the true TCC cost.
2. Price two or three alternative FEHB plans they could move to on TCC at open season. 3. Run Maryland Health Connection’s estimate with a conservative 2027 income projection, and confirm their doctors are in-network on the marketplace plans that come out cheapest.
3. Compare total expected cost (premium plus out-of-pocket) across all options. 5. If the marketplace wins, enroll by December 31 for a January 1 start and end TCC effective December 31. If TCC wins, make any plan change by December 14.

Nothing about this example implies one answer is better. The right choice depends on their actual income, health needs, and networks.

Frequently asked questions​

When is FEHB open season for 2027 coverage?

FEHB open season for 2027 coverage runs from November 9 through December 14, 2026. Changes for non-postal employees take effect January 10, 2027, while changes for PSHB enrollees and annuitants take effect January 1, 2027 (OPM).

What happens if my FEHB plan is discontinued for 2027?

You will not lose coverage, but if you do not choose a new plan during open season, OPM will enroll you in a default plan. That default may cost more or cover your doctors and prescriptions differently. Pick your replacement yourself before December 14.

What is the difference between FEHB and Maryland Health Connection?

FEHB is the federal government’s employer health program, where the government pays up to 75% of your premium. Maryland Health Connection is the state’s ACA marketplace, where you pay the premium yourself but may receive federal tax credits and state help based on income. Active federal employees generally cannot get marketplace subsidies because FEHB counts as affordable employer coverage.

Is TCC cheaper than a Maryland marketplace plan?

It depends on your income. TCC costs the full FEHB premium plus 2%, with no subsidy. A Maryland Health Connection plan may cost much less if your projected 2027 household income qualifies for federal tax credits or Maryland’s state premium assistance, and may cost more if it does not.

Can I drop TCC and switch to Maryland Health Connection anytime?

Generally no. Voluntarily dropping continuation coverage midyear usually does not create a marketplace special enrollment period. The practical switching points are Maryland Health Connection open enrollment (November 1, 2026 through January 15, 2027) or when your 18 months of TCC run out.

Do I need to re-enroll in FSAFEDS for 2027?

Yes. Health, dental, and vision coverage carry over automatically, but FSAFEDS does not. If you want a health care or dependent care FSA in 2027, you must make a new election during open season.

Open season decisions are easier when they are made in the context of your whole financial picture. If you are weighing FEHB, TCC, or a marketplace plan alongside a career change, schedule a free discovery call with District Capital Management.

For local enrollment help, Montgomery County residents can also use the county’s Maryland Health Connection enrollment assistance.

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