According to a 2023 survey conducted by the OPM, over 90% of federal workers say the top reason they wanted to work for Uncle Sam is the government’s benefit programs. At the top of the list is the Federal Employees Health Benefits (FEHB) program.
This is no surprise since Uncle Sam continues to pay up to 75% of your premium in retirement. With healthcare inflation outpacing inflation on consumer goods, being eligible to continue your FEHB coverage may well be the most valuable federal benefit you have in retirement.
Requirements For Continuing FEHB In Retirement
To continue coverage in retirement, you must meet these requirements:
- Retire on an immediate annuity for civilian employees, including FERS MRA + 10 retirement.
- Have continuous enrollment (or covered as a family member) in any FEHB Program plan (not necessarily the same plan) for the 5 years of service immediately preceding retirement. Or, if less than five years, for all service since your first opportunity to enroll.
“The next Open Season will run from November 11, 2024, through December 9, 2024.”
FEHB Premiums In Retirement
Your FEHB premium remains the same as when you were working and the federal government continues to pay the same portion of your premium. Based on a formula-determined law, the government pays up to 75% of your premium and you’re responsible for paying the rest, typically about 30%. Direct post-tax premium payments are deducted from your monthly FERS pension (annuity). If it’s not enough to cover the cost, you can pay through automatic bank withdrawals.
Changing Your FEHB Plan In Retirement
Since retirement is not considered a qualifying life event (QLE), the only time you can change your FEHB enrollment is during the annual Open Season. The next Open Season will run from November 11, 2024, through December 9, 2024. This is when you can make changes to your FEHB plan that will take effect in 2025.
FEHB & Your Spouse
In order for your spouse to keep their FEHB coverage after you die, you have to elect either a full or partial survivor benefit. If you elect “No Survivor Annuity” your spouse’s coverage is terminated upon your death. If you’re enrolled for Self Plus One or Self and Family at the time of your death, and at least one family member is entitled to a survivor annuity, family members can continue FEHB.
Remember — if you cancel your FEHB enrollment after you retire, you and your spouse will never be able to re-enroll. For complete information, download the FEHB Handbook.
