Experts often emphasize the importance of health insurance to save on expensive treatments and healthcare services. You can choose from different types of plans depending on your need. Federal employees, in particular, may be eligible for Federal Employee Health Benefits (FEHB). This program was introduced in 1960 and is the largest health insurance program funded by any employer worldwide. Read on to learn more about the types of FEHB plans, their benefits, and eligibility.
Types of federal employee health plans
Here is a list of plans federal employees can choose from to meet their healthcare expenses:
Fee-for-service (FFS) plans
It is a conventional form of insurance that reimburses you or the healthcare provider for the cost of the services used. You must submit an insurance claim to receive the reimbursement amount. Sometimes, you may have to bear a minimum out-of-pocket expense.
Health maintenance organizations (HMO)
Here, you visit a designated doctor or hospital within the plan’s network. You must meet the expenses yourself if you see a healthcare provider outside the network unless it is an emergency.
Consumer-driven health plans (CDHP)
These plans give enrollees more freedom to take charge of their healthcare costs. Typically, you use pre-tax dollars from an HSA or employer-funded account to meet a broader range of health expenses.
High deductible health plan (HDHP)
In an HDHP, you pay a deductible of at least $1,250 for single coverage and $2,500 for family coverage.
Benefits of federal employee health plans
Signing up for the FEHB program has many benefits. Although what’s covered can differ from plan to plan, you generally save on the following:
- Hospitalization
- Surgery
- Inpatient and outpatient care
- Obstetric care
- Emotional wellness
Eligibility for federal employee health plans
Most federal workers are eligible for FEHB plans, although the specific criteria can differ depending on which agency you work for. Here are a few points to note:
Employees
Unless your employment is excluded from coverage by law or regulation, you can choose FEHB coverage as a federal employee. The FEHB Handbook details eligibility for those in part-time or intermittent employment.
Annuitants and compensations
Federal annuitants and their surviving spouses continue paying the same FEHB health insurance premiums as active employees. You must be qualified to retire on an instant annuity under a retirement scheme for civilian employees to carry your FEHB coverage into retirement.
Families
Under the Self Plus One or Self and Family registration, the following family members are eligible for coverage:
- Spouse
- Biological child
- Stepchild
- Adopted or foster child
- A child 26 years or older unable to support themselves (the disabling condition should have started before age 26)
Continuation of coverage temporarily (TCC)
A provision of the FEHB program called TCC enables some persons to continue receiving FEHB benefits after their normal coverage expires. You must pay the entire premium (both the employee and government portions) for the plan you choose as a TCC enrollee, besides a two percent administrative charge.
Most federal employees are eligible for federal employee health plans, so confirm your eligibility and apply. Consult the FEHB handbook for in-depth information on the program.
