Keeping FEHB Coverage After Retirement

The Good News: FEHB Continues in Retirement

One of the most valuable benefits of federal employment is the ability to continue your FEHB health insurance into retirement. Unlike most private sector jobs, where employer coverage ends when you leave, FEHB stays with you for life.

The 5-Year Rule: Key Eligibility Requirement

To continue FEHB into retirement, you must meet the "5-Year Rule."

What Is the 5-Year Rule?

You must have been enrolled in FEHB (or covered as a family member under someone else's FEHB enrollment) for the 5 consecutive years immediately before retirement.

Alternative Qualification

If you don't have 5 consecutive years, you can still qualify if you were enrolled in FEHB since your first opportunity to enroll. This applies to employees who:

• Enrolled as soon as they became eligible (within 60 days of hire)
• Have maintained continuous coverage since then
• Are retiring with fewer than 5 years of total service

Who Loses FEHB Eligibility?

Unfortunately, not all federal retirees can keep FEHB. You CANNOT continue coverage if:

• Deferred Retirement: You postpone receiving your annuity (e.g., MRA+10 deferred)
• Postponed Retirement: You delay annuity start date to reduce penalty
• Withdraw Contributions: You took a refund of your retirement contributions
• Less Than 5 Years: You didn't enroll at first opportunity AND have less than 5 years of continuous coverage
• Discontinued Coverage: You dropped FEHB within the 5 years before retirement

Changing Your FEHB Plan in Retirement

You retain full flexibility to change your FEHB plan even after retirement.

When Can You Change Plans?

• Open Season: Annual enrollment period (typically November-December) for changes effective January 1
• Qualifying Life Event: Marriage, divorce, birth/adoption, death of family member, loss of other coverage
• Medicare Eligibility: Turning 65 and enrolling in Medicare allows certain changes

Plan Options Available

Retirees have access to the same plans as active employees:

• Fee-for-Service plans (GEHA, Blue Cross Blue Shield, etc.)
• HMOs (Kaiser Permanente, etc.)
• High Deductible Health Plans (HDHP) with Health Savings Accounts
• Consumer-Driven Health Plans

FEHB Premium Costs for Retirees

The premium sharing formula remains the same in retirement:

Premiums are deducted from your annuity on a pre-tax basis, providing additional tax savings.

Family Coverage in Retirement

Spouse Coverage

Your spouse can remain covered under your FEHB enrollment in retirement, regardless of their age or Medicare status.

Children's Coverage

Children can stay on your FEHB plan until age 26, just like under the Affordable Care Act. After age 26, they lose coverage but may qualify for Temporary Continuation of Coverage (TCC) for up to 36 months.

What Happens When You Die?

If you die in retirement, your surviving spouse can continue FEHB coverage if:

• You elected a survivor annuity for them
• They were covered under your FEHB enrollment at the time of death
• You met the 5-year rule (or alternative qualification)