Federal Health & Insurance in Retirement
“Will my health insurance still cover me?”
If you’re like Tom, you want clear answers. Here’s how federal health and insurance benefits work in retirement. And what you need to know to keep your coverage.
Will my health insurance still cover me? Many are not sure if they will be covered after retiring
USARP has a great network of financial planners ready to help you plan your future so you can make the most of your retirement plan.
What Happens to Your Federal Health Insurance When You Retire?
If you have coverage through the Federal Employees Health Benefits (FEHB) Program, you can usually keep it when you retire.
But there are a few rules:
● You must retire with an immediate annuity.
● You need to be enrolled in FEHB for the 5 years before you retire, or from your first eligible date if less than 5 years.
Will You Need Medicare?
Yes. When you turn 65, Medicare becomes important.
● Part A (Hospital Insurance): Free if you paid Medicare taxes long enough. Most people should enroll.
● Part B (Medical Insurance): Has a monthly cost. You can choose to enroll. Many do because it helps cover more.
According to Medicare.gov, 96% of people aged 65 and over are enrolled in Medicare. If you have both FEHB and Medicare, they work together. Usually: Medicare pays first and FEHB pays second
Together, they can reduce what you pay out-of-pocket.
Should You Keep FEHB if You Have Medicare?
For many people, yes. FEHB plans can cover things Medicare doesn’t. Like:
- Prescription drugs
- Care outside the U.S.
- Extra hospital days
You can also use FEHB to avoid needing a Medicare Part D drug plan. Some retirees drop FEHB to save money, but be careful. Once you cancel FEHB, you usually can’t get it back. More on this at OPM’s Medicare and FEHB FAQ.
What About Dental and Vision Coverage?
FEHB doesn’t include dental and vision. If you want that, you can use the Federal Employees Dental and Vision Insurance Program (FEDVIP).
Like FEHB, you can carry FEDVIP into retirement. You pay the full cost, but group rates are often better than private plans.
Long-Term Care Insurance
The Federal Long Term Care Insurance Program (FLTCIP) helps with nursing home care, home health care, and more. You can keep this in retirement if you signed up while working. New enrollments are paused as of December 2022, but current members keep their coverage.
What If You Move After You Retire?
Your FEHB plan may still work, but check the provider network.
- Some plans are nationwide.
- Others are regional or local.
If you move, you may want to change plans during Open Season.
What You Can Do Now
Planning ahead helps. Here’s a short list:
1. Check your FEHB enrollment history.
2. Understand Medicare Parts A and B.
3. Decide if you’ll keep or drop FEGLI.
4. Look at FEDVIP options if you want dental or vision.
5. Make changes during Open Season (usually Nov–Dec).
If you’re not sure, talk to a benefits advisor. Many agencies offer help, or you can speak with a retirement planning expert.
Tom’s Story, Continued
Tom kept his FEHB. He signed up for Medicare Part A and Part B. He skipped Part D because his FEHB already covered prescriptions. He also kept a reduced life insurance plan.
Now he spends more time biking than budgeting. And he doesn’t worry about surprise medical bills.
Like Tom, you can retire with peace of mind. Just know the rules, make smart choices, and check in once a year to stay covered.
Ready to Plan with Confidence?
Navigating your federal health and insurance benefits in retirement doesn’t have to be overwhelming. With the right guidance, you can maximize your coverage, minimize surprises, and enjoy the peace of mind you’ve earned.
Want expert help reviewing your options?
Schedule your free consultation with a retirement specialist at: usaretirementplanners.com
We’ll help you create a personalized strategy that aligns your health coverage and finances for a stress-free retirement.
Frequently Asked Questions
Can I keep my FEHB plan in retirement?
Yes, if you retire with an immediate annuity and were covered under FEHB for at least 5 years. More info: OPM FEHB FAQ
Do I need Medicare if I have FEHB?
It’s optional, but many retirees sign up for Parts A and B to lower their out-of-pocket costs.
What happens if I cancel my FEHB in retirement?
You usually can’t re-enroll. Be careful before making that choice.
Is dental and vision included in FEHB?
No. You need FEDVIP for that. You can keep FEDVIP in retirement.
Will my insurance still work if I move to a new state?
Yes, but check if your plan has providers in the new area. You can switch plans during Open Season.
