Retired from Federal Service? Here’s What You Need to Know About Health Benefits

Retiring from federal service is a big milestone, but it comes with important decisions, especially when it comes to your health benefits. Federal health insurance after retirement is a critical factor to consider to ensure you’re covered in your retirement years. Here’s everything you need to know about federal health benefits after retirement.

Federal Health Insurance Options

After retirement, you don’t lose your health benefits right away. You can continue your Federal Employees Health Benefits (FEHB) coverage, as long as you meet the eligibility requirements. To qualify, you must have been enrolled in FEHB for at least five years before retiring, and you need to be receiving an immediate annuity from your retirement.

Once eligible, you can continue with the same plan you had while working for the federal government, or you can switch to a different one that better suits your needs.

Types of Health Coverage for Retirees

FEHB offers several types of health plans to choose from:

Fee-for-service plans: These plans allow you to visit any doctor who accepts the insurance, but you may need to pay upfront and get reimbursed later.

Health maintenance organizations (HMOs): These plans offer lower premiums but require you to use a specific network of doctors and hospitals.

Preferred provider organizations (PPOs): These plans give you more flexibility to choose providers, but the premiums may be higher.

It’s important to choose a plan based on your healthcare needs and budget. Each option offers different benefits and costs, so take time to compare them before making a decision.

Enrolling in Federal Health Insurance After Retirement

After retirement, you’ll need to enroll or make changes to your FEHB coverage during the open season, which typically happens in the fall. However, there are exceptions—if you retire mid-year, you may be able to make changes outside the open season.

If you are already enrolled in FEHB when you retire, you don’t need to take action, as long as you meet the eligibility requirements. If you were not previously enrolled or want to change your plan, you’ll need to submit the appropriate paperwork.

Medicare and Federal Health Benefits

Once you turn 65, you become eligible for Medicare, the federal health insurance program for seniors. Medicare works alongside your FEHB coverage. It’s important to enroll in Medicare Part A (hospital coverage) when you turn 65. You may also want to consider enrolling in Medicare Part B (outpatient care), which can complement your FEHB coverage.

Even though Medicare helps with healthcare costs, FEHB can still be valuable because it may cover things that Medicare doesn’t, like some prescription drugs. Be sure to check how both programs will work together to avoid gaps in coverage.

Cost of Federal Health Insurance After Retirement

While FEHB is a great benefit, it’s not free. You will still need to pay premiums, and the amount depends on the plan you choose. In addition to premiums, you may also need to cover out-of-pocket costs like copays, deductibles, and coinsurance.

The government subsidizes part of the premium cost for federal retirees, which often makes FEHB a better deal compared to other health insurance options. It's a good idea to review your plan regularly to ensure it still fits your needs and budget, especially as your healthcare needs change over time.

FERS Deferred Retirement Health Benefits

If you retire under FERS deferred retirement (meaning you leave federal service before meeting the age or service requirements for immediate retirement), you may not qualify for health benefits right away. However, you can apply for health benefits once you reach the age needed for full retirement.

While deferred retirement health benefits aren’t available immediately, planning for your healthcare coverage when you’re eligible is important to avoid gaps in coverage after you retire.

Conclusion: Plan Ahead for Your Healthcare Needs!

Understanding federal health insurance after retirement is essential for federal employees planning their retirement. You have several options for continuing your health coverage, whether through FEHB or Medicare. Be sure to review the different plans available and choose one that best fits your needs.

For those who are considering FERS deferred retirement health benefits, it’s important to plan ahead for when you reach the eligibility age. Taking the time to research your options and ensure you’re enrolled in the right plan will help you stay covered and manage your healthcare costs throughout your retirement.

By taking the time to learn about your federal health insurance after retirement, you’ll be better prepared for the future.