Should you drop your Federal Employees Health Benefits coverage when Medicare starts? Be very cautious before making that decision. For many federal retirees, FEHB can provide valuable secondary coverage alongside Medicare by helping cover certain deductibles, coinsurance, and other healthcare expenses.
The most important distinction is between canceling and suspending FEHB. Canceling FEHB as a federal annuitant is generally permanent, meaning you will not have the option to reenroll later.
Suspension may preserve your ability to return to FEHB, but it is permitted only under specific circumstances, such as enrolling in an eligible Medicare Advantage plan. Medicare Parts A and B alone do not allow you to suspend FEHB coverage. If you access Medicare Advantage through your existing FEHB plan, you generally do not need to suspend FEHB.
Compare your premiums, prescription coverage, expected medical expenses, provider access, and family coverage before making any change. Review the official OPM guidance on FEHB and Medicare and consult your retirement system before canceling or suspending coverage.
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