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OPM Orders Health Carriers to Cut Costs, Shift Model

9/3/2026

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Story summary
  • OPM asked federal health carriers to cut costs and adopt a “well care” model in a March 31 letter.
  • OPM cut its workforce by 35% between December 2024 and March 2026, GAO reported.
  • Federal Employees Health Benefits enrollees faced a 12.3% average premium increase in 2026; Postal Service participants saw 11.3%.
  • OPM appointed Matthew Kiley associate director of its healthcare and insurance division.