Federal employees and retirees rely on the Federal Employees Health Benefits (FEHB) program to get quality healthcare. But what if you’re overpaying for your plan? Many people stick with the same plan for years without checking if it’s still the best option. If you’re spending more than you should, it might be time for a change. Let’s go over some clear signs that you could be overpaying for your FEHB plan and what you can do about it.
1.Your Premiums Keep Going Up, but Your Needs Haven’t Changed
FEHB premiums rise every year, but that doesn’t mean you need to keep paying more. If you’re noticing constant increases in your monthly costs without using new benefits, you might be in the wrong plan. Compare your current premium to other options available to federal employees and retirees.
2.You Rarely Visit the Doctor but Pay for a High-Cost Plan
If you’re in great health and only visit the doctor once or twice a year, paying for a high-premium plan with extra coverage might not make sense. Consider switching to a lower-cost plan that still meets your basic healthcare needs without unnecessary extras.
3.You’re Paying for Family Coverage When You Don’t Need It
Some federal employees forget to update their plan after their children age out or if they no longer need spouse coverage. If you’re still paying for a family plan when an individual plan would suffice, you’re likely overspending. Review your enrollment and adjust it based on your current situation.
4.Your Plan Has High Out-of-Pocket Costs
Some plans have lower premiums but high deductibles and copays. If you’re paying more out-of-pocket than what you save in premiums, it’s time to compare plans. Look for one that offers a better balance of premiums, deductibles, and copays.
5.Your Prescription Costs Are Too High
Prescription coverage varies between FEHB plans. If you’re spending a lot on medications, check if another plan covers your prescriptions at a lower cost. Switching plans could save you hundreds of dollars per year on medications alone.
6.You’re Not Using the Benefits You’re Paying For
Some FEHB plans offer extra benefits like vision, dental, or wellness programs. If you’re paying for a plan that includes services you never use, consider switching to a more basic plan. This way, you only pay for what you actually need.
7.Your Plan Doesn’t Cover Your Preferred Doctors or Hospitals
If your preferred healthcare providers are out of network, you may be paying higher costs for visits and procedures. Switching to a plan that includes your doctors could reduce your medical expenses significantly.
8.You Haven’t Reviewed Your Plan in Years
If it’s been a long time since you last compared FEHB plans, you might be missing out on better options. The Open Season period allows federal employees and retirees to switch plans, so take advantage of this time to explore lower-cost alternatives.
Closing Insights
Overpaying for an FEHB plan doesn’t just impact you—it can also affect your federal employee survivor benefits. If you’re spending too much on premiums, you may have less financial security for your family in the future. Choosing the right FEHB plan ensures you’re not only protecting your health but also securing the best financial future for your loved ones.
Need expert guidance? My Federal Retirement Help is here to assist! Our specialists will help you compare plans, reduce costs, and ensure your benefits work best for you. Connect with us today to start saving!
FAQs
1.Can I change my FEHB plan anytime?
No, you can only switch plans during the Open Season or after a qualifying life event, such as marriage or retirement.
2.How do I find a more affordable FEHB plan?
Use the OPM comparison tool or get expert assistance from My Federal Retirement Help to find a cost-effective plan.
3.What happens if I don’t change my plan?
If you don’t switch during Open Season, you’ll stay enrolled in your current plan, even if the costs increase.
4.Can retirees switch their FEHB plan?
Yes, federal retirees can change their FEHB plan during Open Season just like active employees.
5.Will changing my FEHB plan affect my survivor benefits?
Your FEHB plan choice can impact your financial planning, including funds available for your survivor benefits. Choosing the right plan ensures you’re managing both healthcare and long-term financial security wisely.
