For 2027, MHBP is making several changes to its plan offerings. The Consumer Option will no longer be available in the FEHB or PSHB Programs, and the Value Plan will no longer be available in the FEHB Program. MHBP is also adjusting premiums and certain member cost-sharing requirements for both the Standard Option and the Value Plan.

Why is MHBP doing this?

After extensive review of its financial position, MHBP determined that the Consumer Option in the FEHB and PSHB programs, and the Value Plan in the FEHB program, were no longer financially sustainable. For the Standard Option and the Value Plan, MHBP determined that adjustments to the premiums and certain member cost-sharing are necessary to ensure their long-term financial stability.

MHBP has proudly served postal and federal employees, retirees, and their families for more than 60 years. MHBP is, and has always been, a not-for-profit plan – every dollar received in premiums is used to pay member claims and plan expenses.

From 2020-2025, MHBP kept premiums flat by using some of the plan’s reserves that had accumulated over many years. This approach meant that the plan would spend more on claims and expenses than the plan would receive in premiums. Given that membership levels had  stayed relatively level over the years, MHBP decided that using the accumulated reserves to keep the premiums flat was an appropriate benefit to provide to MHBP’s participants.

In 2026, however, MHBP experienced an unprecedented and unexpected increase in membership, with MHBP’s membership almost doubling from 2024. More members meant significantly more medical and pharmacy claims, and the decision to keep the premiums underpriced meant that the increased claims consumed more of the plan’s reserves than was expected. The combined effect of the explosive membership growth and the intentionally low premiums was that significant changes needed to be made to MHBP’s plans to ensure long-term stability.

What is MHBP doing now?

MHBP is focusing on the Standard Option in the FEHB and PSHB programs and the Value Plan in the PSHB program and is making changes for 2027 to strengthen those plans to ensure that they continue providing comprehensive coverage and valuable services in the years ahead.

MHBP remains a strong choice in health insurance for postal and federal workers and retirees. MHBP’s Standard Option and Value Plan will continue to offer access to a broad national provider network, coverage for in-network and out-of-network care, no referral requirement for specialists, a 24/7 nurse line, and other valuable benefits, all at a fair price.

Members should review the official 2027 plan brochures and Open Season materials for complete information about premiums, benefits, and cost sharing.