What’s left of your 2027 COLA
After FEHB and Medicare.
For many FERS retirees, the FEHB increase takes a big share of the COLA.
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1. Your net change
Enter your own numbers. Your FEHB premium is on your annuity statement; leave Social Security at 0 if you don’t get it yet.
2. A worked example
A FERS retiree, 64, draws a $2,500 annuity and $2,000 from Social Security, and pays $400 a month for FEHB. These are example figures, not averages.
| Item | Monthly change |
|---|---|
| FERS COLA: $2,500 × 2.6% | +$65.00 |
| FEHB premium: $400 × 10.9% | −$43.60 |
| Net on the annuity | +$21.40 |
| Social Security COLA: $2,000 × 3.6% | +$72.00 |
| Part B, projected | −$6.60 |
| Net on Social Security | +$65.40 |
| Total | +$86.80 |
Before tax. On the annuity alone, two-thirds of the FERS COLA goes to the higher FEHB premium. A CSRS retiree with the same annuity and premium would get $90.00 and keep $46.40 of it.
3. Why FERS feels it most
- The COLA is cut. FERS gets the COLA minus one point when it is above 3%, so 2.6% instead of 3.6%. See FERS and CSRS COLAs explained.
- Under 62, there is no COLA at all, but the FEHB increase still comes out of the annuity. See turning 62 as a FERS retiree.
- Premiums are no longer pre-tax. In retirement, FEHB premiums are paid with after-tax money. See why FEHB costs more after you retire.
4. Part B and the hold-harmless rule
The 2026 Medicare Trustees Report projects the 2027 Part B premium at $209.50, up $6.60 from $202.90. CMS sets the real figure in November, and higher earners pay more through IRMAA.
Social Security’s hold-harmless rule stops a Part B increase from shrinking a Social Security check below last year’s amount. It doesn’t protect CSRS or FERS annuities, it doesn’t cover FEHB premiums, and it doesn’t apply if you pay IRMAA. If money for Part B is tight, Warrior Disability explains Medicare Savings Programs and Extra Help.
5. What you can do before January
- Compare plans in Open Season, Nov 9 to Dec 14. Doing nothing keeps your plan at the new price. Start with Warrior Insure’s Open Season guide and its FEHB premium estimator.
- Check your enrollment type. If the kids are grown, Self Plus One may cost less than Self and Family. See Self Plus One vs. Self and Family.
- On Medicare? Look at plans that pay part of Part B. See Part B givebacks in FEHB plans.
- Check January’s statement against December’s. See reading your OPM annuity statement.
6. Frequently asked questions
Will the 2027 COLA cover my FEHB premium increase?
Often not fully for FERS retirees. The FERS COLA is 2.6% of your annuity, while the average FEHB enrollee premium rises 10.9%. If your premium is a large share of your annuity, the premium increase can take a big bite out of the COLA. Run your own numbers, and compare plans during Open Season, November 9 to December 14, 2026.
How much will Medicare Part B cost in 2027?
CMS sets the 2027 premium in November. The 2026 Medicare Trustees Report projects $209.50 a month, up $6.60 from $202.90 in 2026. Higher earners pay more through IRMAA.
Does the Social Security hold-harmless rule protect my annuity?
No. Hold-harmless only stops a Part B increase from shrinking a Social Security check below its prior amount. It does not apply to CSRS or FERS annuities, to FEHB premiums, or to anyone paying IRMAA.
When will I see the net change?
In January 2027. The COLA, the new FEHB premium and the new Part B premium all take effect with the first payments of 2027, so compare your January statement with December’s.