FEGLI and FEHB

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Q. I retired from federal employment and continued my health care coverage, as well as coverage for my husband. My husband is eligible for Medicare next month. Can I drop his health care coverage under my Option C insurance, but keep his life insurance going?

A. Option C provides no health care coverage. It’s a way to provide you with a financial benefit in the event that a family member dies. If you want to drop that coverage you can. Doing so would have no affect on any other life insurance, such as Options A or B, where you have designated him as the beneficiary if you die.
Think twice about dropping him from your FEHB coverage. While he’ll be eligible for Medicare Part A at no cost to himself, he’d have to pay for Part B. Further, the combination of an FEHB plan and Part A alone would reduce out-of-pocket health care costs substantially. Being covered by Parts A, B and FEHB would reduce those costs to almost zero.

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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.

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