By Jeff Brown,
One of the most valuable—and often misunderstood—benefits federal employees have is the Federal Employees Health Benefits (FEHB) program. After helping countless federal employees plan their retirement, I can confidently say: keeping FEHB into retirement is one of the biggest financial wins available—if you qualify.
Yes, You Can Keep FEHB in Retirement—If You Meet the Rules
To carry FEHB into retirement, you must:
1. Retire on an immediate annuity (not a deferred one), and
2. Have been enrolled in FEHB for the 5 years immediately before retirement—or for the full time since you were first eligible.
If you meet those two rules, you can keep your FEHB coverage for life, and the government will continue to pay about 70–75% of the premium—just like when you were working.
Important note: If you want your spouse to keep FEHB after your death, you must elect a survivor benefit at retirement. Without it, their access to FEHB ends when your pension stops.
FEHB vs. Medicare: How They Work Together
When you turn 65, you’ll be eligible for Medicare, and many retirees ask: Do I need both?
● Medicare Part A (hospital) is free and almost always a good idea.
● Medicare Part B (doctor visits) has a monthly premium. Whether you enroll often depends on your specific FEHB plan and needs.
● Keeping both gives you almost complete coverage and lowers out-of-pocket costs—but it’s not mandatory.
Every case is different. I walk my clients through the cost-benefit of enrolling in Part B based on their FEHB plan, medical needs, and budget.
Changing Plans in Retirement
Yes—you can still change your FEHB plan every Open Season in retirement, just like you could while working. That flexibility is a huge advantage as your healthcare needs and financial situation evolve.
Key Takeaway:
Keeping FEHB into retirement is one of the strongest pillars of your retirement plan. Don’t assume it’s automatic—plan early, know the rules, and position yourself to qualify. If you’re unsure about your FEHB eligibility, Medicare options, or the survivor benefit requirement, let’s talk. I’ll help you make sure your healthcare is covered—so you can retire with confidence.
