Can I keep FEHB in retirement?

Yes, but you must meet two requirements: (1) You must retire on an immediate annuity (not a deferred retirement), and (2) You must be enrolled in FEHB for the 5 years immediately before retirement. There are limited exceptions to the 5-year rule for certain circumstances like returning from active military duty. If you meet these requirements, you can keep FEHB for life, and the government continues to pay approximately 72% of the weighted average premium just as they did while you were working.

Do I need Medicare if I have FEHB?

Most federal retirees should enroll in Medicare Part A (which is premium-free if you have 40 quarters of Medicare-covered employment) and Part B when they turn 65. Medicare becomes your primary insurance and FEHB becomes secondary, which can significantly reduce your out-of-pocket costs. Some FEHB plans waive deductibles and copays for Medicare-enrolled members. Delaying Medicare Part B enrollment can result in permanent late-enrollment penalties. We recommend reviewing your specific FEHB plan's Medicare coordination benefits before deciding.

What is the 5-year rule?

The 5-year rule requires continuous FEHB enrollment for the 5 years immediately preceding your retirement to carry FEHB into retirement. This means 5 consecutive years — not 5 total years. If you weren't enrolled in FEHB, were covered under a spouse's plan, or had a lapse in coverage during those last 5 years, you may not be eligible to continue FEHB. Limited exceptions exist for employees who return from active military service or lose coverage under a spouse's FEHB enrollment. It's critical to verify your eligibility well before your planned retirement date.

How does FEHB coordinate with Medicare?

Once you enroll in Medicare, it becomes your primary payer and FEHB becomes secondary. This means Medicare pays first, then your FEHB plan pays some or all of what Medicare doesn't cover, depending on your specific plan's coordination rules. Many FEHB plans offer enhanced benefits for Medicare enrollees, such as waived deductibles or reduced copays. You continue paying your FEHB premium, but your combined coverage (Medicare + FEHB) is typically better than either alone. Most federal retirees find this combination provides excellent coverage without needing a Medicare Supplement (Medigap) policy.

What changed with PSHB for postal employees?

The Postal Service Health Benefits (PSHB) program was created as a separate health insurance program for postal employees and retirees, distinct from FEHB. Starting in 2025-2026, postal employees and annuitants were transitioned from FEHB to PSHB. PSHB plans are similar to FEHB but are specifically designed for the postal workforce. Postal retirees in PSHB must enroll in Medicare Part A and Part B when eligible. If you're a postal employee approaching retirement, understanding the PSHB enrollment requirements and plan options is essential — the rules differ from traditional FEHB in important ways.

FEHB PLANNING

FEHB Health Insurance in Retirement

The Federal Employees Health Benefits Program is one of the most valuable benefits you can carry into retirement — but you must meet specific eligibility requirements, and coordinating FEHB with Medicare requires careful planning to avoid gaps in coverage.

REVIEW MY FEHB ELIGIBILITY →

Federal retiree reviewing health insurance options

"FEHB in retirement is one of the best healthcare benefits you can get. Make sure you're eligible."

— Mike Stevens, IAR

Eligibility

5-year rule verification

Medicare Coordination

Part B timing

Plan Selection

FEHB vs Medicare Advantage

Premiums

Pre-tax in retirement

Cost

Included

THE PROBLEM

Does This Sound Familiar?

You don't know about the 5-year enrollment rule

To carry FEHB into retirement, you must be enrolled for the 5 years immediately before you retire. Miss this requirement and you lose FEHB eligibility permanently.

You're confused about FEHB and Medicare coordination

When you turn 65, Medicare becomes your primary coverage and FEHB becomes secondary. Understanding how they coordinate can save you thousands in premiums and out-of-pocket costs.

You're worried about rising FEHB premiums

FEHB premiums increase annually, and the government continues to pay approximately 72% of the weighted average premium — but your portion can still grow significantly over a 20-30 year retirement.

You're a postal employee confused about PSHB

The Postal Service Health Benefits program launched in 2025-2026, creating a separate system for postal employees and retirees. Understanding how this affects your coverage is critical.

THE SOLUTION

How We Help

FEHB Eligibility & Medicare Coordination Planning

We verify your FEHB eligibility, help you select the right plan for retirement, and create a strategy for coordinating with Medicare to maximize coverage while minimizing costs.

The government continues to contribute approximately 72% of the weighted average premium in retirement, making FEHB one of the most cost-effective health insurance options available. We ensure you don't accidentally forfeit this valuable benefit and help you navigate the transition to Medicare when the time comes.

Our FEHB Planning Includes:

5-year enrollment rule verification and compliance tracking
FEHB plan selection for retirement (HDHP, PPO, HMO comparison)
Medicare Part A and Part B enrollment coordination
Medicare Supplement (Medigap) vs FEHB analysis
Medicare Part D prescription drug coverage evaluation
Long-term premium projection and budgeting
PSHB transition planning for postal employees
Annual Open Season review and plan optimization

How it Works

It's just three steps

BECOME A CLIENT

Step 1) Eligibility Check ▾

Review your FEHB enrollment history to confirm you meet the 5-year rule and identify any potential gaps or issues.

Step 2) Plan Selection ▾

Compare FEHB plans for retirement based on your healthcare needs, preferred providers, and budget — including Medicare coordination.

Step 3) Medicare Strategy ▾

Build a comprehensive plan for enrolling in Medicare at 65, coordinating with FEHB, and optimizing your coverage and costs.

COMMON QUESTIONS

FEHB Planning FAQ

Everything you need to know about keeping FEHB in retirement and coordinating with Medicare.

Schedule FEHB Review