Keeping Your FEHB Coverage in Retirement
One of the most valuable benefits available to federal retirees is the ability to continue your Federal Employees Health Benefits (FEHB) coverage into retirement. This is a significant advantage over private-sector workers, who typically lose employer-sponsored health insurance when they retire.
Eligibility Requirements
To continue FEHB coverage in retirement, you must meet two key requirements:
- You must be entitled to an immediate annuity (not a deferred retirement)
- You must have been continuously enrolled in FEHB (or covered as a family member) for the five years immediately before your retirement date
If you meet these requirements, you can continue any FEHB plan available to you as an active employee.
Cost of FEHB in Retirement
In retirement, you continue to pay the same employee share of FEHB premiums that you paid as an active employee. The government continues to pay its share. Your premiums are deducted from your monthly annuity payment.
Coordinating FEHB with Medicare
When you turn 65, you become eligible for Medicare. Most federal retirees choose to enroll in Medicare Part A (hospital insurance) at no cost, since they have paid Medicare taxes throughout their careers. The decision to enroll in Medicare Part B (medical insurance) requires more careful consideration.
For many federal retirees, having both FEHB and Medicare Part B provides excellent coverage with minimal out-of-pocket costs. However, the Part B premium (approximately $185/month in 2025) must be weighed against the benefits.
Planning Your Healthcare Strategy
The Spivak Financial Group helps federal employees develop a comprehensive healthcare strategy for retirement, including FEHB plan selection, Medicare enrollment decisions, and long-term care planning.