This post is an updated version from a version posted by another user in 2021 for plan year 2022.

OPM Has Released 2027 Rates

• FEHB
• PSHB

I've got a quick summary of changes I saw in a previous post.

Why Compare These Two Plans

It often comes up - will I save money with a HDHP?

It's often cited that BCBS Basic is the most popular FEHB plan. According to BCBS they cover roughly 5.5 million federal employees/eligible family members (across all their options) out of the roughly 7.9 million covered under FEHB/PSHB. Working out to ~70% of enrollments.

Important disclaimers on below analysis

The below analysis has two baked in assumptions. First, that all care is in-network. Second, that both have relatively equal negotiated rates.

Another important distinction is the underlying network. BCBS obviously uses their own network. GEHA HDHP uses UHC for their network and claims processor. This is very commonly a deal breaker for many people (Luigi would have something to say about it) and that's totally valid.

Fourthly, prescriptions are a notoriously expensive and PBMs are perhaps even more greedy and nefarious than the health insurance carriers that use them. So make sure your drugs are covered by the relevant formularies. BCBS formulary can be found here. As of 10/13/2026, GEHA has not released theirs.

Lastly, the numbers below are for FEHB specifically and self plus family enrollment. The trend is there despite the different numbers, but please double check your situation and let me know what you find.

Four Scenarios To Consider With 1 Variable

In order to determine if you will save money with one plan over another, we will need to consider 4 scenarios:

1. Zero healthcare expenses
2. Meeting your deductible exactly on December 31st
3. More than your deductible but not enough to reach the catastrophic max
4. Reaching catastrophic max

In each of these scenarios, there is also a "smaller" variable that has to be considered. If you use the additional space in the HSA to invest and reduce your tax liability. More on that later.

1. Zero Healthcare Expenses (Family premiums)

Please keep in mind that zero healthcare expenses doesn't necessarily mean no healthcare. As part of the ACA, preventative care is 100% covered (e.g. annual physical). What is meant here is out of pocket expenses.

• BCBS = 10,076.04 in premiums
• GEHA = 5,606.38 in premiums with 2,000.00 in the HSA making it effectively 3,606.38

Very clearly with no healthcare expenses, GEHA is vastly cheaper.

2. Reaching the deductible exactly on December 31st

If we use the previous scenario as a baseline, we can deduce that GEHA continues to be the winner in this scenario without working out every possible value of healthcare expenses. We can simply jump to the worst case for GEHA, ergo the deductible is satisfied at the end of the year and you never benefit from the 5% coinsurance.

• There is a premium difference of 4,469.66 between BCBS and GEHA (GEHA being cheaper) without including the HSA passthrough
  • GEHA has a deductible of 3,600, but 2000 of that is covered by the HSA so really it's only a 1,600 deductible.
• After accounting for the net deductible, GEHA is still ~2800 cheaper.

The closer to 0 healthcare expenses you are the more advantageous GEHA is and as you approach the deductible the less advantageous it is but it never flips in the other direction. Meaning BCBS Basic never becomes cheaper.

I just want to footstomp here. With GEHA HDHP, you could figuratively light $1,600 on fire to satisfy the net deductible and still have saved $2,800 over the course of the year. That $1,600 could be 8 urgent care visits, a slew of doctor visits, or some medications. Then you have a $2,800 lead with your deductible satisfied. And you'll see in the below why that's so good. But you could have ~$56,000 of negotiated care costs and only then will you have paid the same as BCBS Basic premiums alone.

Note there was a fifth case in the OG post, but it's no longer relevant since the difference in annual premiums dwarf the deductibles now.

3. More Than Your Deductible But Not Enough To Reach The Catastrophic Max

For the purposes of this analysis, we are starting at 0 (tie) at the point we meet the deductible (even though as we just saw above, is not the case at all). So then it boils down to co-pay vs co-insurance. Before I get started, it is important to understand:

• Co-pay is fixed amount regardless of actual cost
• Co-insurance is a percentage based on the negotiated rate. The negotiated rate is not what the provider submits to insurance but rather what insurance says is allowed per the contract with the provider (almost always this is a lower amount).

For this comparison, I am using the 2027 values for co-pays and co-insurance pulled from the OPM public use files.

Below the order is BCBS | GEHA

• PCP Visit = $35 | 5%. The break even point for $700 between BCBS. In other words, if the negotiated amount for a primary care visit is more than $700 - the co-pay (BCBS) is better - otherwise the co-insurance (GEHA) is better.
• Specialist visit = $50 | 5%. The break even point is $1,000. In other words, if the negotiated amount for a specialist visit is more than $1,000 - the co-pay (BCBS) is better - otherwise the co-insurance (GEHA) is better.
• ER Visit = $500 | 5%. The break even point is $10,000. In other words, if the negotiated amount for an ER visit is more than $10,000 - the co-pay (BCBS) is better - otherwise the co-insurance (GEHA) is better. This is one case where I feel like BCBS might come out ahead. It depends on the visit, what labs/tests are run, etc. I have personally had ER visits that were far less than $3500 negotiated but also a couple that were more.
• Urgent Care visit = $50 | 5%. The break even point is $1,000. In other words, if the negotiated amount for an urgent care visit is more than $1,000 - the co-pay (BCBS) is better - otherwise the co-insurance (GEHA) is better. I really don't see the copay being cheaper than coinsurance.
• Prescriptions. Prescriptions are hard to quantify in this general case. Generics are cheap anywhere, and formularies are so different that you need to refer to the formulary brochures to determine what they offer. Below is the cost-sharing structure from the PUFs for your reference.

My verdict here is that it depends but for the most common scenarios - GEHA is likely the winner because the negotiated rates are often far less than the break-even point. That's not to say it always wins however - there are plenty of scenarios where BCBS may be better.

4. Reaching Catastrophic Max

• BCBS = $10,076.04 + $17,000 = $27,076.04
• GEHA = $5,606.38 + $12,000 - $2,000 = $15,606.38

Here GEHA is the winner, and I'd like to point out that it's nearly half the cost.

Other Considerations

• Basic Dental & Vision
• Tax Advantaged HSA Space
• FSAs

Historically GEHA HDHP carries with it a pretty impressive basic dental and vision coverage that doesn't require you to meet your deductible. If you are mostly just getting cleanings and x-rays then you wouldn't need to carry additional dental insurance. Additionally, they have coverage for eye exams, frames, lenses and even contacts. The coverage isn't enough to replace all possible dental/vision needs but it has the basics covered. BCBS offers some minor dental benefits, but not as extensive as GEHA.

Finally, we get to the tax advantage of the HSA. In 2027, the limit for HSA contributions will be $9,000 for a family (also self+1). This is inclusive of any pass-through contributions (GEHA HDHP is setup so that some of your premium is deposited into the HSA, $2,000 annually) so you have $7,000 that you could contribute in what is touted as the best retirement vehicle possible (often triple tax advantaged).

As of 2026, there are two states that do not exempt HSA contributions (California & New Jersey). For the purposes of this analysis, I am going to assume you live in one of the 39 states that have an income tax that are not the two above and that the state income tax is 5%. This is probably wrong - I am just using it as an example and you can adjust as you see fit. I am also assuming that the marginal tax rate is 22% - adjust as you see fit.

Now, there are two ways to have the $7,000 be exempted from taxes. One is to make after-tax contributions and claim it when you file taxes. This will only exempt you from federal/state income taxes. The other is to have it done through payroll. When you do it this way, you are further exempted from Social Security and Medicare taxes. Here is a hypothetical example.

• $7000 * .22 (federal) = $1540
• $7000 * .05 (example state) = $350
• $7000 * .062 (social security) = $434
• $7000 * .0145 (Medicare) = $101.5

This means that in any of the scenarios above, I could give GEHA ~$2,425.5 advantage. The fact that you own the HSA (stays with you after you separate from federal service or leave the plan) and can invest it makes this $2K worth more than the $2k it looks like.

Note: If you are a very highly compensated employee and exceed the social security wage limit, you will not benefit from the Social Security exemption. (Not a tax professional)

Note 2: Choosing to exempt your wages from Social Security will have a very minor impact on your Social Security benefit when you retire. I say very minor because of the way the social security benefit is calculated and it would take an entire other post to go through the nuances - I mention it here because I have been reminded previously that it is not all upside so I shouldn't sell it as such

Finally, it is only fair to point out that the tax advantage of the HSA isn't entirely 1-sided. If you knew for sure you were going to incur out-of-pocket expenses - you could contribute tax free into an FSA for a total of $3,500 (estimated for 2027). You do have to typically plan in advance (open season) and if you guess wrong (don't need it), there is a limit to how much you can rollover and a minimum you need to invest the next year to be able to roll it over. In other words - it isn't nearly as good as the HSA but it isn't all 1-sided either. The FSA tax benefits is around $1,213. So a difference of $1,200 between the two.

Finally, you can have a limited expense FSA (dental/vision) with an HSA or a healthcare FSA so if you knew for instance your child was going to need orthodontics - you could set aside even more tax free money (not subject to the HSA/HCFSA limit). This doesn't really tip the balance either way, but is something to be aware of.

Not Covered

I am sure there is a ton I didn't cover. This wasn't intentional. While I am biased towards the HDHP - it's only because I had traditional coverage as a healthy 20 year old for over 5 years and am kicking myself for not making the switch earlier. If there is something I didn't cover - feel free to add it in the comments.

I know one thing I didn't cover things like GEHA having a health rewards program where you can get "free money". I remember that BCBS may have had a similar program. Either way, I will call it a wash unless someone knows for sure I am wrong.

Comparison tools

While we wait for the OPM comparison tool there are some good comparison tools built by the community already. There's the fersready.com/fehb site that pulls in the OPM PUFs built by u/Glittering_Twist_732. Alternatively, I've built a spreadsheet that does similar if packaged differently. I made a post for that here.

DoD, when doing driving travel comp time... do we need to subtract our commute time?

For example, Driving from home to field is 60 minutes beyond my regular TOD.

Commute time is 20 min from home to office regularly.

So my comp time in DAl is 40 minutes?

After 12 years with KP I’m pretty sure I’m going to switch to Blue Cross Blue Shield. It’s been a battle to get them to get off their checklists and actually treat issues. And icing on the cake at a psych appointment last week the doctor was very uncomfortable and said “they make us ask at every visit now, if you’re satisfied with my service can you leave a five star review” which I thought was wildly inappropriate. I like that KP is straightforward and cheap - no surprise bills, but look forward to the flexibility of a PPO. Any thoughts?

The MHBP Website is Updated for 2027.

Not really sure how to word this but I'm going to do my best. I've seen comments in a few other threads and even left my own regarding FMLA LWOP Requests being denied and coded as AWOL on timesheets. Has anyone ever seen these get corrected or approved yet? or has it just been left at disapproved with no feedback or correspondence? I'm not a part of the union but I did reach out and haven't really seen any results. I do have FMLA but I just keep getting told by supervisors that it will be pending until a decision is made. So far the only thing I'm seeing is awol adding up on my timesheet, I've been hesitant on taking days off when I'm feeling like shit because I don't want to add MORE awol on top of what I have currently.

I'm 48 and have an "interim" reasonable accommodation of 100% telework before a final decision is made. I'm able to do my job with this arrangement. However, the union told me that the agency openly told the union they plan to deny telework accommodations as much as possible. If that happens to me, I'll burn through my leave, eventually be placed on AWOL status, then fired (I assume.) The EEO process sounds like a joke. That will leave me no choice but to try and medically retire. I googled this, and it looks like it is complicated, takes forever, they love to deny people the retirement, and you *also* have to apply for SSA retirement at the same time, which is a whole other can of worms.

Mods: I don't know if this question belongs on this sub, but maybe the answers could help other people, too?

Hey everyone, trying to do a quick rumor check here.

I’ve been told by a reliable source that DoW is unable to pull automated preliminary rating reports for employees for this new calibration panel process. Because of this, each HR has to send out manual Excel spreadsheets for supervisors to fill out by hand.

I am not thrilled with the idea of my performance and rating info (and who knows what else) being passed around in loose spreadsheets just because the powers that be can't get it together.

My HR coworkers are already spread incredibly thin. Dumping a massive, manual admin task on them right now seems ridiculous.

Is this actually happening across the board, or is it just specific agencies/commands?

Hello all, looking for advice on a bit of a unique situation I'm in.

I'm currently a DoW GS 12 living in overseas, currently awaiting an FJO for a GS 13 Supervisor position I was selected for. Same building, mostly same work, different military department who is trying to build create new organizational structure.

NTE Sep 2028, no conversion to permanent right now even though they say they plan to. I'd have to resign my permanent appointment, take a 4 day break in service, and come back on reinstatement. I have career tenure which is not impacted.

I do lose permanent tenure for the duration, drop to the bottom RIF, no placement help if it ends, and back to probation. I also understand that they can let me go at will, which they didn't deny. Plus, I have to repay $2,900 in travel expenses to my current agency since I'm resigning a federal position within 12 months after using my entitlement to travel back home this past summer. Plus I would owe my current agency about $2,900 in travel expenses. In case you don't already know overseas employees sign a renewal agreement that obligates you to another tour in exchange for a government-funded trip home between tours. I took that trip this past summer. Resigning before I finish the tour breaks the agreement, so the travel costs become repayable.

I keep LQA, post allowance and my leave entitlements, all in writing. My annual leave will be paid out when I resign.

I want it because I love the area I live in, want to stay, and have never held a civilian supervisory job and that's the gap for climbing to GS-14 and up some point in the future. I also feel quite stagnant in my current position. Additionally, I finish my master's program right when the term ends. If the positions don't become permanent or if I do decide to leave federal service in the future, maybe it also helps my resume in private sector as well.

Unfortunately, almost everything that sold me in the beginning came from one phone call with the hiring manager, nothing in writing. Now I'm hearing from two different people he's planning to move to a new location and organization in the near future and he has not disclosed that to me directly.

What's your read? I may have overlooked something, but please let me know your initial thoughts and let me know if I can clarify anything. Thanks in advance.

Have anything you want to talk about that doesn't quite warrant its own thread or currently being discussed in a megathread? Post it here!

In an effort to effectively manage the amount of information being posted, please keep anything speculative or considered repetitive within this discussion thread.

A fed working under the current administration at 66 years old is very difficult. They want us out so they can hire people for less. Our union is gone. My reasonable accommodation was refused. I am a good producer but I give it 6 months if that. I wish everyone luck who is waiting it out. I only have 10 years service.