Medicare and Federal Employee Benefits (FEHB)
Federal retirees often have coverage through the Federal Employees Health Benefits (FEHB) program. Because this coverage can continue into retirement, many people wonder whether enrolling in Medicare is necessary.
Medicare and Federal Employee Benefits (FEHB)
Federal retirees often have coverage through the Federal Employees Health Benefits (FEHB) program. Because this coverage can continue into retirement, many people wonder whether enrolling in Medicare is necessary.
Do Federal Employees Have to Take Medicare?
No. Qualified federal retirees can keep their FEHB coverage without enrolling in Medicare.
However, some retirees choose to enroll in Medicare to reduce costs or gain access to additional plan options.
Common Medicare Options for Federal Retirees
Option 1: Keep FEHB Only
Some retirees keep their FEHB coverage and do not enroll in Medicare. However, if they decide to enroll in Medicare Part B later, they may face a late enrollment penalty.
Option 2: Keep FEHB and Enroll in Medicare
Many retirees enroll in both programs.
In this situation:
- Medicare usually becomes the primary payer
- FEHB becomes secondary coverage
This combination can significantly reduce out-of-pocket costs.
Option 3: Drop FEHB and Use Medicare Plans
Some retirees choose to suspend or drop their FEHB plan and instead enroll in:
- A Medicare Supplement plan, or
- A Medicare Advantage plan
Suspending FEHB usually allows you to reactivate it later, while cancelling may not.
Summary
Federal retirees have several options when it comes to combining Medicare with FEHB coverage. Comparing costs and benefits can help determine which option is best.
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