Myth Buster: 4 Common Myths About FEHB In Retirement

By Bobby Maggi

You’re entitled to a place in the Federal Employees Health Benefits (FEHB) program, but do you know how it works? You may have heard all kinds of “rules” and “facts” from your coworkers, and some of them may sound conflicting. That’s because there are myths floating around that can get in the way of proper knowledge, but we’re here to fix that by clearing up some of these common myths!

Find out what’s true (and false) about FEHB in retirement, and then reach out to Federal Educators St. Petersburg for professional advice and your free benefits analysis!

Myth #1: The Government Won’t Help With Your FEHB Premiums After You Retire

Retirement marks the end of your employment, not the end of your federal employee benefits. Many people think that FEHB is only covered during the time you’re actively working, but that’s not true at all. Your FEHB premiums will continue to be compensated by up to 72%. This leaves you with just under 30% out of pocket, about the same that you would pay during employment.

What about postal service workers in St. Petersburg? Even if you’re currently paying less for your FEHB premiums during employment, your coverage will match that of everyone else after you retire. This is the only discrepancy, and a niche one at that.

Myth #2: Your FEHB Will Be Replaced By Medicare After You Retire

Going along with the previous myth, some employees are under the pretense that their insurance coverage will be replaced by Medicare after their FEHB supposedly “expires” upon retirement age. Even after you hit the retirement age of 65 (for most employees in St. Petersburg), you have the option to keep your FEHB coverage or drop it in favor of Medicare. Although we wouldn’t typically recommend the latter. This exchange won’t just happen automatically, so you have nothing to worry about if you’re currently enjoying your FEHB coverage.

Myth #3: You Can Restart Your FEHB Coverage If You Cancel It After Retirement

Life is an ever-flowing river. The water is never the same, and neither will your career or living situation in St. Petersburg years or decades from now. Hard decisions are inevitable, and you want to make each one deliberately. Some choices (like those involving federal benefits) are irreversible after retirement.

Take this situation, for example:

Whatever your reason may be, you decide to cancel your FEHB coverage after you retire. After trying other options, you realize that your FEHB plan was actually the best choice for you. However, once you’re retired, you can’t get back on this program once you leave. This truly isn’t a decision to be taken lightly.

Although a rare occurrence, it is possible to temporarily suspend your FEHB coverage in retirement to come back to it at a later date.

Myth #4: Family Members Can’t Be Adjusted On Your FEHB After Retirement

By now, you realize that FEHB can be generous in some aspects and rather strict in others. In the case of adding and removing family members, this can be done after retirement, contrary to popular belief. The only stipulation? This can only be done during FEHB open season, which typically occurs during the winter months each year for St. Petersburg.

Learn more > How to Use the FEHB Open Season to Adjust Your Coverage

Secure Your FEHB Coverage In Retirement. Learn More About Your Government Employee Benefits With Federal Educators St. Petersburg.

Before believing the people around you, ask a professional! You want to be sure about your federal employee retirement benefits so you can get the most out of what you’re entitled to. Meet with a Federal Educators benefits advisor by calling (813) 568-1212 today to schedule a consultation appointment! Get your free benefits analysis from Federal Educators St. Petersburg to get started.

BLOG