Consider Your Options Before Declining FEHB Insurance Late in Your Career.

Many employees at a later stage of their careers are considering leaving the Federal Employees’ Health Benefits program in favor of other insurance due to the annual increases in program premiums. In some circumstances, individuals might be qualified for health insurance through their spouse’s job in the private sector.

Understanding the FEHB

The Federal Employees Health Benefits (FEHB) program, which provides health insurance to more than 8 million federal employees, former employees, family members, and former spouses, is the biggest employer-sponsored insurance program in the world.

FEHB covers a variety of plans, including point-of-service, fee-for-service with a preferred provider organization, consumer-driven health plans, high deductible health plans, and health maintenance organizations. Depending on the plan, different methods may be used to receive coverage or pay for services. Hospitalization, surgery, obstetrical care, inpatient and outpatient care, mental health and drug abuse treatment, and prescription drug coverage are features that are provided by all plans. Even if you switch plans, FEHB has no waiting periods or restrictions on pre-existing conditions.

Quitting the FEHB

Before discontinuing FEHB coverage, make sure to give it some thought. You must be consistently enrolled (or covered as a member of the family) in any FEHB plan(s) for five years of service preceding the date one retirement income starts or for the whole date(s) of service from your first possibility to enroll to become eligible to continue health benefits protection in retirement under a retirement program for civilian employees (if less than five years). Only very rarely are waivers of the 5-year requirement permitted.

By signing a Health Benefits Election form (SF 2809), you attest that you are aware of the implications for your ability to maintain coverage until retirement should you decide not to enroll or to cancel your enrollment.

Additionally, you probably won’t ever be able to re-enroll in the FEHB as an annuitant if you terminate your registration (unless you had suspended it from enrolling in a Medicare managed care plan or the military Veterans Administration CHAMPVA or TRICARE programs).

Additionally, keep in mind that if your spouse’s health insurance is mainly provided by private sector employment, it may expire for several reasons. In certain situations, such as after quitting a healthcare health plan, TRICARE, or CHAMPVA, annuitants may re-enroll in the FEHB program.

You wouldn’t be able to transfer your coverage to the private non-group policy, nor would you or your family members be eligible for continuous coverage. If you are unsure of your ability to reapply, do not leave the FEHB program.

Frequently asked questions about FEHB in retirement

I’m about to enter retirement. What are the conditions for maintaining health coverage after retirement?

You must meet two requirements to continue receiving health benefits into retirement: 

You are required to have retired with an immediate annuity. (i.e., one that starts accruing no later than one month after the date of your last day).

 You must have been continuously enrolled in any FEHB Program plan (or covered as a family member) for five years before retirement.

When I retire, would my insurance prices go up?

No, the premium you pay now will remain the same as when you were an employee. However, because annuitants are paid monthly, you will compensate them at that amount. If you work for a company that adds more money to the premium total, like the Post Office, you may experience a higher premium. 

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.