Federal retirees have access to the Federal Employees Health Benefits (FEHB) Program, which is considered one of the top health insurance programs in the United States. However, many retirees wonder if they can pause their FEHB coverage and return later, especially if they have other health insurance options, such as coverage from a new job or through a spouse.
Key Points
You cannot suspend FEHB coverage just because you have other health insurance, like from a new job or your spouse. If you cancel your FEHB in retirement, you usually cannot get it back.
The only way to suspend FEHB and return later is if you enroll in certain other programs, such as TRICARE, CHAMPVA, Medicaid, or Medicare Advantage. If you want to pay less for FEHB but keep your coverage, you can switch to a lower-cost plan during Open Season.
What Is FEHB?
The Federal Employees Health Benefits (FEHB) Program provides health insurance to federal employees, retirees, and their families. It offers a variety of plans, including Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs).
Can You “Pause” FEHB Coverage?
Generally, you cannot pause your FEHB coverage just because you have other health insurance. If you retire and have FEHB, you cannot suspend it to take another plan, such as one from a private employer or your spouse, and expect to return later. FEHB does not work like a subscription that you can pause and restart at any time.
You are only allowed to suspend FEHB in retirement if you enroll in TRICARE, CHAMPVA, Medicaid, or Medicare Advantage. In these cases, you must fill out Form RI 79-9 to suspend your FEHB. If you later lose that other coverage, you can re-enroll in FEHB.
What If You Want to Leave FEHB for Another Job’s Plan?
If you retire and take a job in the private sector that offers health insurance, you might think you can drop FEHB and return later. However, this is not allowed. If you cancel your FEHB in retirement, you cannot rejoin unless you qualify for the special programs mentioned above.
Why Canceling FEHB Is Risky
Canceling FEHB may save money in the short term, but it could cost more in the future. FEHB is a lifelong benefit if you keep it, and the government continues to pay a large part of the premium after you retire. If you cancel FEHB and lose your private coverage later, you cannot get FEHB back unless you meet the exceptions. Financial advisors often recommend keeping FEHB, even if you want to reduce costs.
A Better Option: Choose a Cheaper FEHB Plan
If you want to save money but keep your FEHB, consider switching to a lower-cost plan during Open Season, which usually runs from mid-November to mid-December each year. You can select a high-deductible or lower-premium plan and still stay in the FEHB program. This allows you to change plans later if your situation changes.
Conclusion
You cannot pause FEHB just because you have other health insurance, and canceling it in retirement usually means you cannot get it back. Switching to a cheaper plan during Open Season is often a safer choice. FEHB is a valuable benefit for federal retirees, so it is important to keep it working for you.
