Facing a Job Loss or Early Retirement? Don’t Drop Your FEHB Without This Step

Hey folks, this is Mike Lanway with All About FERS.

This morning I’ve been thinking about your health insurance. And more specifically, I’ve been thinking about those of you who are facing tough, unwanted decisions about your federal job. Maybe you’re caught in a reorganization, dealing with a RIF (reduction in force), or feeling the pressure from early retirement offers like VERA or VSIP.

Whatever the reason, I want to talk plainly about one essential benefit you need to think twice about before letting go: your FEHB (Federal Employees Health Benefits).

Before You Drop FEHB, Know Your Options

FEHB isn’t just another workplace perk. It’s one of the best, most flexible health insurance options available in or out of government. And if you’re being nudged out the door—voluntarily or not—it can be easy to assume that FEHB coverage ends with your job.

But that’s not always the case.

You May Have a Right to Continue Coverage

If you’ve been enrolled in FEHB, you have the right to continue your insurance for a period of time after separation. It won’t be free, and yes, it’s going to cost more than you’re used to.

You’ll have to:

• Pay both your share AND the government’s share of the premium.
  
• Add on a 2% administrative fee.
  

That sounds steep – and it is. But here’s the part many people miss:

It might still be less expensive and more comprehensive than anything you could find on the open market.

Don’t Cancel Until You Compare

It’s easy to panic when facing job loss or forced early retirement. People start cutting costs and canceling what feels optional. But your health insurance is not the place to rush.

Take the time to compare:

• What FEHB continuation would cost you out of pocket
  
• What kind of private or marketplace insurance you could qualify for
  
• The coverage differences between those plans
  

Remember, losing your federal job doesn’t automatically mean you lose all your benefits. But it does mean you need to make smart, informed decisions about what to keep, what to change, and when.

When In Doubt, Ask for Help

Don’t go it alone. We help folks like you think through these decisions every day. Whether you’re facing early retirement, a separation incentive, or just a lot of unknowns—this is the time to pause and plan.

So take a deep breath. You’re not without options.

And as always, we’re here to help you make decisions that fit your life, not just your job.

Wishing you clarity, confidence, and coverage that gives you peace of mind.

—Mike Lanway