Mark the occasion of National Insurance Awareness Day by conducting a thorough evaluation of your insurance policies this summer.
In the ever-changing landscape of healthcare, it's essential for federal employees to regularly evaluate their Federal Employees Health Benefits (FEHB) insurance coverage. Here are some recommended steps to ensure your coverage meets your needs and avoid unnecessary costs.
Start by using the FEHB Plan Comparison Tool on the Office of Personnel Management (OPM) website. This tool allows you to review plans side-by-side, comparing premiums, benefits, and coverage options, helping you identify plans that better fit your current circumstances.
Another crucial step is to review your enrollment type carefully. Consider whether Self Plus One coverage may be more economical than Self and Family coverage, especially if you only cover one eligible dependent. Switching to the more appropriate enrollment code, when possible during Open Season, can result in significant savings without losing coverage.
Don't forget to check if you qualify for premium conversion waivers or tax-saving opportunities. Active employees benefit from the Premium Conversion program that allows paying premiums with pre-tax dollars, reducing tax burden. Certain retirees, reemployed annuitants, or specific categories may still qualify for related benefits.
Consider using Flexible Spending Accounts (FSAs) if still employed, which allow setting aside pre-tax dollars for eligible medical expenses like copayments and prescriptions. This is a strategy to make healthcare costs more manageable, though FSAs must be elected during Open Season and are not available to retirees.
Stay informed about family member eligibility and the audit processes. New government rules require verification of covered family members’ eligibility periodically, and you should be prepared to provide documentation (e.g., birth or marriage certificates) if requested to ensure continued coverage for eligible members.
Remember, Open Season is the primary time to make coverage changes, but these proactive and ongoing evaluation steps help federal employees maintain suitable coverage year-round, prepare for Open Season decisions, and avoid paying for unnecessary or incorrect coverage.
Life changes like getting married, welcoming a child, or planning to start a family next year can qualify as a life event, allowing federal employees to make changes to their plan outside of Open Season.
To stay updated on all things federal, consider signing up for a daily newsletter. Many federal agencies offer their employees free access to Consumers' Checkbook's Guide to Health Plans for Federal Employees, a trusted resource for help choosing an FEHB plan, ranking all plans based on estimated total yearly cost.
It's also important to regularly check which FEHB plans your preferred providers accept, as doctors and other healthcare providers can join or leave a plan's network at any time.
As we approach the Federal Insurance Open Season scheduled for November, federal employees are advised to reassess their current healthcare needs and FEHB plan. If planning to retire soon, evaluating which FEHB plan aligns best with your healthcare needs and budget is crucial.
The Centers for Disease Control and Prevention has removed the recommendation status for the COVID-19 vaccination for pregnant women, but insurers are urged to continue covering the vaccination at zero cost for pregnant patients.
Lastly, don't forget to review your healthcare spending halfway through the year to assess whether you are overinsured or could benefit from a lower-premium plan. The National Active and Retired Federal Employees Association offers educational resources to help federal employees and retirees better understand and navigate their benefits, including the FEHB program.
On June 28th, let's celebrate National Insurance Awareness Day by taking a moment to review and understand our FEHB coverage better. By staying informed and proactive, we can ensure we're making the best decisions for our health and financial well-being.
- Federal employees should also consider the impact of their FEHB plan choices on their personal-finance, especially during Open Season, as making changes to the enrollment type, taking advantage of premium conversion waivers, or using Flexible Spending Accounts can result in significant savings.
- The National Active and Retired Federal Employees Association provides educational resources to help federal employees and retirees, including understanding which Federal Employees Health Benefits (FEHB) plan aligns best with their healthcare needs and budget, thereby aiding them in managing their personal-finance related to healthcare.
