Suspending FEHB coverage

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Q. Federal employees who are veterans with service-connected disabilities and who use the Veterans Health Administration (VHA) for their healthcare are not afforded the opportunity to suspend their Federal Employees Health Benefits (FEHB) upon retirement. This forces those veterans to choose between FEHB, Medicare Part B/C, when they need neither. Is this an Office of Personnel Management policy that can be changed, or does the solution require an act of Congress?

A. By regulation, OPM does allow annuitants to suspend their FEHB enrollment in order to enroll in a Medicare Advantage plan, TRICARE or CHAMPVA, or Medicaid or similar state-sponsored program of medical assistance. (Information on suspending FEHB coverage at  https://www.opm.gov/healthcare-insurance/Guide-Me/Retirees-Survivors/#url=Health.) It doesn’t allow employees to do that, nor does it allow employees or retirees to suspend their FEHB coverage when they are receiving VHA benefits. To change this would require an act of Congress.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

4 Comments

  1. Karen Mamalakis on

    Great question and I was just waiting until my daughter turned 26 and then I planned to drop my FEHB coverage. So there goes that money saver. My question is what we veterans are too sick to afford our FEHB coverage because mine is very expensive. That’s over $300 a month that I could put in to natural remedies and vitamins which is the only thing helping me at the time.

    • Here is the answer taken from OPM’s website:

      How can annuitants or former spouses suspend FEHB coverage to use TRICARE or CHAMPVA?

      They can apply to suspend their coverage at any time. Annuitants can call OPM’s Retirement Information Office at 1-888-767-6738 to obtain a suspension form. Callers within the local Washington, DC calling area must call 202-606-0500. Former spouses can get the form from the employing office or retirement system maintaining their enrollment. Eligible individuals must submit a completed suspension form and provide all necessary documentation to show eligibility for TRICARE or CHAMPVA during the period beginning 31 days before and ending 31 days after the date they designate as using TRICARE or CHAMPVA instead of FEHB coverage.

      • If we would suspend our FEHB, could we reinstate it at a later date? I cannot afford it; but, if VHA would get bad or the VA would STOP serving us, then I would need FEHB again. Thank you!

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