FEHB for Retirees: How to Keep Your Health Insurance

Get Your Free Consultation

Talk one-on-one with a licensed financial professional who specializes in federal benefits. Completely free, no obligation.

By the OnPAR Federal Retirement Education editorial team · Last updated October 29, 2026

Short answer: You can keep FEHB as a retiree if you retire on an immediate annuity and were enrolled for the 5 years right before your annuity starts^[1]. You pay the same premium as an active employee in the same plan, deducted from your annuity^[2]. Never cancel FEHB in retirement: once you cancel, you can't come back^[2].

1. The 5-year rule

To carry FEHB into retirement, OPM says you must be entitled to an immediate annuity (this includes FERS MRA+10) and must have been continuously enrolled, or covered as a family member, in any FEHB plan for the 5 years of service immediately before your annuity starts, or for all your service since your first chance to enroll if that is less than 5 years^[1]. Two kinds of time count toward the 5 years^[1]:

Time covered as a family member under someone else's FEHB enrollment.
Time under TRICARE, as long as you are in an FEHB enrollment when you retire.

If you take MRA+10 but postpone the annuity, FEHB ends at separation. You can enroll again within 60 days after OPM tells you that you're eligible, if you met the requirements^[2]. For the full table of who keeps coverage, see FEHB in retirement: the 5-year rule.

2. What retirees pay in 2027

OPM has published the 2027 rates. Annuitants get the same government contribution and pay the same enrollee share as non-Postal employees in the same plan^[2]. For 2027, the monthly maximum government contribution for most employees and annuitants is $762.75 for Self Only, $1,662.98 for Self Plus One and $1,828.28 for Self and Family^[3]. Across FEHB, the average enrollee share rises 10.9% for 2027 (PSHB: 8.2%)^[5].

Your own cost depends on your plan. Find it in OPM's 2027 rate charts (HMO and fee-for-service charts, with monthly figures)^[3]. If your annuity is too small to cover your share, you can switch to a cheaper plan or pay the retirement system directly^[2].

3. Medicare plus FEHB

FEHB does not require Medicare Part B; PSHB is different (see below)^[9].
Enrolling in Medicare doesn't raise or lower your FEHB premium^[7].
Part A is premium-free for most FEHB enrollees; Part B has a monthly premium^[7].
Some FEHB plans reimburse Part B premiums or waive copays, coinsurance and deductibles for services Part B covers^[8]. Many Medicare Advantage plans offered through FEHB reimburse some or all of the Part B premium^[7].
If you delay Part B 12 months or more after you're first eligible, the premium goes up 10% for each 12 months you could have had it, for as long as you have Part B^[8].
FEHB counts as creditable drug coverage, so you won't owe a Part D late penalty while you keep FEHB^[8].

More on the choice: Do federal retirees need Medicare Part B?

4. Open Season changes as a retiree

Open Season runs November 9 to December 14, 2026^[4]. Enrolled annuitants can change plans, options or enrollment type^[2]. Annuitant changes take effect January 1, 2027; a cancellation takes effect December 31, 2026^[5].

If you do nothing, you stay in your current plan, unless the plan is leaving FEHB or shrinking its service area. Benefits and premiums may still change^[6].
New for 2027: anyone adding a family member at Open Season must send documents that prove the person is eligible^[5].
You can drop to a smaller enrollment type, such as Self Plus One to Self Only, at any time^[2].
Questions: OPM Retirement Information Office, 1-888-767-6738, or [email protected]^[6].

5. Cancel vs. suspend

An annuitant who cancels FEHB can never re-enroll^[2]. If you are eligible for TRICARE, TRICARE-for-Life or CHAMPVA, or you join a Medicare-sponsored plan or Medicaid, you can suspend FEHB instead. You can then return at Open Season, or right away if you lose the other coverage involuntarily^[1].

6. Survivor coverage

Surviving spouses keep FEHB eligibility at the same cost as employees^[1]. As a rule, your spouse can keep FEHB after your death only if (1) your enrollment covered them at the time (a family enrollment, not Self Only) and (2) they are entitled to a monthly survivor annuity^[2]. Waiving the survivor annuity can therefore cost your spouse their health coverage. See the FERS survivor benefit.

7. PSHB for USPS retirees

Since January 1, 2025, Postal Service employees and annuitants get health coverage through PSHB, not FEHB. If a Postal annuitant is covered as a family member under a non-Postal FEHB plan, that coverage can continue^[9]. PSHB is part of FEHB, and the same Open Season dates apply^[4].

Under the Postal Service Reform Act of 2022, certain Medicare-eligible Postal annuitants and their Medicare-eligible family members must enroll in Part B to stay in PSHB^[9]. If you don't enroll and don't qualify for an exception, you can't get PSHB in retirement, even if you enroll in Part B later^[10]. The exceptions include^[9]:

Postal annuitants who retired on or before January 1, 2025 and weren't already in Part B.
Postal employees who were 64 or older on January 1, 2025.
Those living outside the U.S. and its territories.
Those eligible for certain VA health benefits or Indian Health Service care.

Postal annuitants who joined Part B during the 2024 special enrollment period have their late enrollment penalty paid by USPS as long as they keep or suspend PSHB^[9].

Retiree FEHB checklist

Confirm you'll have 5 years of coverage before your annuity starts.
Don't cancel FEHB before or after you retire.
Decide on Medicare Part B around 65 (required for many Postal retirees).
Review your plan every Open Season.
Keep a family enrollment if your spouse should keep coverage after you.

Frequently asked questions

Can a retiree keep FEHB?

Yes, if you retire on an immediate annuity (including FERS MRA+10) and were continuously enrolled in FEHB for the 5 years of service right before your annuity starts, or since your first chance to enroll if that is less than 5 years (OPM).

Do retirees pay more for FEHB?

No. OPM says annuitants keep FEHB at the same cost as current employees, with the same government contribution as non-Postal employees in the same plan. Your share comes out of your annuity.

When is FEHB Open Season for retirees?

November 9 to December 14, 2026. For annuitants, changes take effect January 1, 2027 (OPM).

Can I re-enroll in FEHB if I cancel as a retiree?

No. OPM says an annuitant who cancels FEHB can never re-enroll. You can suspend FEHB in some cases, such as to join a Medicare Advantage plan, TRICARE or CHAMPVA, and come back later.

Do USPS retirees have to take Medicare Part B?

Many do. Under the Postal Service Reform Act, certain Medicare-eligible Postal annuitants and family members must enroll in Part B to keep PSHB, with exceptions such as those who retired on or before January 1, 2025 (OPM).

Talk it through, free

Book a free consultation →

Free, no obligation. Not affiliated with OPM or any government agency.