Can I keep FEHB and FEGLI when I retire?

Rules checked October 18, 2026, against opm.gov and cms.gov

The five-year rule

To carry the Federal Employees Health Benefits program (FEHB) into retirement, OPM lists three conditions (OPM: When can I keep my health insurance after I retire?):

1. Your annuity starts within 30 days of leaving, or you retire under the MRA+10 rule, in which case coverage is suspended until a postponed annuity begins.
2. You are enrolled on the day you retire.
3. You were continuously covered for the five years right before retiring, or during all of your federal service since your first chance to enroll. OPM says coverage under TRICARE can count toward this too.

Life insurance (FEGLI) has a matching rule: you must be enrolled on your retirement date and have been continuously enrolled for the five years of service before retiring, or for all periods you were eligible if you have less than five years (OPM: FEGLI guide for retiring employees).

The rule is strict, and it is the reason people enroll at least five years before they plan to leave. If you take a deferred annuity after leaving early, you can't come back in at all. See deferred vs postponed retirement.

What retirees pay for FEHB

Retirees pay the same premium as active employees for the same plan. OPM's Medicare fact sheet says "retirees pay the same premium as active employees" and that enrolling in Medicare does not lower your FEHB premium (OPM: FEHB and Medicare FastFacts). The government pays the rest: for most annuitants, the lesser of 72% of the program-wide weighted average premium or 75% of your plan's total premium. Your share comes out of your monthly annuity.

Premiums change every January. For plan year 2027, OPM reported that the enrollee share will rise an average of 10.9% for FEHB and 8.2% for PSHB. Open Season runs November 9 to December 14, 2026, with changes effective January 1, 2027 (OPM: 2026 Open Season highlights). Retirees can switch plans during Open Season just like employees. Compare your plan's price increase with the 2.6% FERS COLA expected for January 2027 (see FERS COLAs).

FEHB and Medicare

When you are retired and have Medicare, Medicare pays first and FEHB pays second. Enrolling in Medicare is optional for FEHB retirees, and your FEHB coverage continues either way (OPM: I'm eligible for Medicare).

• Part A (hospital) is premium-free for most people. OPM suggests taking it, since it can cover costs FEHB doesn't.
• Part B (doctors and outpatient) has a premium. The standard 2026 premium is $202.90 a month, with a $283 deductible (CMS: 2026 Part A and B premiums). Higher earners pay more.

Whether Part B is worth it is the big decision. OPM's fact sheet explains that with a fee-for-service plan, Part B plus FEHB together can cover nearly all medical costs, and that once Medicare is primary some plans waive deductibles, coinsurance and copays. If you'd rather join a Medicare Advantage plan, you need Parts A and B, and OPM says to contact your retirement office about suspending FEHB first. Against all that, you pay the Part B premium for life. If you skip Part B when first eligible and want it later, Medicare can charge a permanent late enrollment penalty, unless you qualify for a special enrollment period (for example, because you're still working with FEHB as primary). Our health insurance before 65 guide covers the years before Medicare.

You can change your FEHB enrollment once, starting 30 days before you become eligible for Medicare, as well as during Open Season.

Postal retirees and PSHB

Since January 1, 2025, Postal Service employees and annuitants are covered by the Postal Service Health Benefits (PSHB) program instead of FEHB. PSHB is a separate program within FEHB, created by the Postal Service Reform Act of 2022 (OPM: PSHB program).

The key difference is Medicare Part B. Medicare-eligible postal annuitants and their Medicare-eligible family members must enroll in Part B to keep PSHB coverage, with exceptions:

• 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.
• People living outside the United States and its territories.
• People eligible for certain VA health benefits or Indian Health Service care.

PSHB also includes Medicare Part D drug coverage through each plan's Employer Group Waiver Plan for Part D-eligible members, at no added premium. The same five-year enrollment rule applies to keeping PSHB in retirement.

FEGLI choices at retirement

If you qualify to keep FEGLI, you make elections on form SF 2818 that set how the coverage changes. Accidental death and dismemberment coverage ends at retirement (OPM: Basic insurance in retirement).

Before 65, annuitants pay the Basic premium of $0.3250 a month per $1,000 of coverage. With the 50% or no-reduction choices, an extra premium starts at retirement and continues for life. If you pick 50% or no reduction, you can later switch only to the 75% reduction. If you don't make an election, OPM uses the maximum (75%) reduction.

The optional coverages work differently (OPM: FEGLI guide for retiring employees):

• Option A ($10,000) reduces automatically by 2% a month after 65 until $2,500 remains. It's free after 65.
• Options B and C (multiples of salary, and family coverage): for each multiple you keep, choose full reduction (drops 2% a month to $0 after 65, premiums stop) or no reduction (premiums based on age continue).

You must keep Basic to keep any option. If you cancel FEGLI in retirement, you can't get it back. Option B and C premiums are based on age and rise as you get older, so compare them with private term or other life insurance before deciding.

Dental and vision (FEDVIP)

The Federal Employees Dental and Vision Insurance Program has no five-year rule. If you retire on an immediate annuity or on disability, your FEDVIP coverage continues, and you can even enroll for the first time after retiring (OPM: FEDVIP five-year rule). You don't need FEHB or PSHB to have FEDVIP.

What to do next

1. Check five years back. Confirm your FEHB or PSHB and FEGLI enrollment has been continuous for five years before your planned date.
2. Pick your FEGLI elections. Use OPM's FEGLI calculator pages to compare costs.
3. Plan for Medicare. Mark your 65th birthday. Postal retirees: plan Part B enrollment.
4. Use Open Season. Review your plan each fall, November 9 to December 14 in 2026.
5. Protect your spouse's coverage. Your survivor election decides whether FEHB continues for them.

General information, not advice. We aren't part of OPM, the Postal Service or Medicare. Your agency's benefits office can confirm your eligibility, and OPM Retirement Services handles changes after you retire.