You could save thousands and have peace of mind knowing your coverage truly matches your needs. Image: tete_escape/Shutterstock.com
By: Dallen HawsIf you’re a federal employee, there’s a good chance you’ve had the same FEHB plan for years. Maybe even decades. And that’s not uncommon—most people don’t like dealing with health insurance, and once they’ve picked a plan that “works,” they tend to stick with it. But here’s the reality: the Federal Employees Health Benefits (FEHB) Program changes every single year—and the difference between your current plan and a better option could literally be thousands of dollars.
So, how do you know if your FEHB plan still stacks up against others? Let’s break it down.
Why Picking a Plan Can Be So Overwhelming
There’s no question—choosing a health plan can feel like an impossible task. Deductibles, copays, coinsurance, premiums, maximum out-of-pocket costs… the list goes on. Even when two plans look similar on paper, their real-world costs can vary dramatically once you start using them.
That’s why organizations like Checkbook’s Guide to Health Plans for Federal Employees exist. Their guide helps federal employees compare plans not just on premiums, but on total expected yearly cost—including both your premium and estimated out-of-pocket expenses for typical doctor visits, prescriptions, and emergencies.
This approach helps you understand what you’ll really spend in a good, average, or bad health year. For example, let’s say a family of three is enrolled in Blue Cross Standard. Their average total yearly cost—premiums plus out-of-pocket expenses—might be around $7,650. But if that same family switched to Blue Cross FEP Blue Focus, their expected yearly cost could drop to $4,700—a savings of almost $3,000 per year.
That’s the power of comparing plans side by side.
When evaluating your options, it’s also smart to look at each plan’s catastrophic coverage, or the “most you could pay in a year.” This gives you a worst-case scenario—how much you’d be on the hook for if you had a major accident or illness.
Should You Be Shopping Around Each Year?
Yes. 100% yes.
Even if you’re happy with your plan, you should at least check how it’s changing for the upcoming year. FEHB plans adjust premiums and benefits annually—and assuming your plan hasn’t changed could cost you.
In some years, premiums rise significantly. But beyond cost, plans frequently add or remove coverage for things like acupuncture, chiropractic visits, fertility services, or telehealth. Drug formularies (lists of covered prescriptions) also change, and sometimes a medication that was covered one year may no longer be the next.
There are also new plans introduced every year, and others that exit the program. You might discover a better option that didn’t even exist when you first enrolled.
The truth is, the only “con” to shopping around is the time it takes to compare plans. For many families, that hour or two of research can lead to hundreds—or even thousands—of dollars in annual savings.
Don’t Overlook High Deductible Health Plans (HDHPs)
If you’re an active employee, one option worth exploring is a High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA).
With an HDHP, you typically pay lower premiums in exchange for a higher deductible—but the HSA can more than make up for that difference. Contributions to an HSA are triple tax advantaged:
- You get a tax deduction when you contribute,
- The money grows tax-free, and
- You can withdraw it tax-free for qualified medical expenses.
If you’re healthy and don’t expect many medical expenses this year, you could contribute enough to your HSA to cover known costs (like prescriptions or doctor visits), then let your agency’s contribution accumulate and grow for future years. Over time, this becomes a powerful tax-advantaged bucket for health care in retirement.
And unlike a Flexible Spending Account (FSA), your HSA money doesn’t expire at the end of the year—it’s yours forever.
What About When Medicare Enters the Picture?
Once you retire and reach age 65, Medicare becomes part of the equation—and this can significantly change how your FEHB plan works.
You’ll get Medicare Part A (hospital coverage) for free, but Part B (medical coverage) is optional and comes with a monthly premium.
Here’s what many retirees don’t realize: most FEHB plans wrap around Medicare. That means if you enroll in both Parts A and B, your FEHB plan often waives its deductibles, copays, and coinsurance—resulting in almost 100% coverage for most services.
Some FEHB plans even offer Part B premium reimbursements, helping offset the extra cost of enrolling.
So, as with active employees, it pays to shop around. Some plans pair better with Medicare than others, and your health needs in retirement may look very different from your working years.
The Bottom Line
Your FEHB plan is one of the most valuable benefits you have as a federal employee—but it’s not a “set it and forget it” decision.
Plans change. Your health changes. Costs change.
The good news? By taking just a little time each year during Open Season to compare your plan’s total yearly cost, catastrophic coverage, and how it interacts with Medicare or HSAs, you can make sure you’re getting the most out of your benefits.
Don’t assume your current plan is the best—it might be, but wouldn’t it be great to know for sure?
At worst, you’ll confirm that your current plan is still a good fit. At best, you could save thousands and have peace of mind knowing your coverage truly matches your needs.
Dallen Haws is a Financial Advisor who is dedicated to helping federal employees live their best life and plan an incredible retirement. He hosts a podcast and YouTube channel all about federal benefits and retirement. You can learn more about him at Haws Federal Advisors.
See also, Checkbook’s Guide to Health Plans for Federal Employees
5 Steps to Protect Your Federal Job During the Shutdown
Over 30K TSP Accounts Have Crossed the Million Mark in 2025
The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025
Primer: Early out, buyout, reduction in force (RIF)
See also,
OPM Guidance Addresses Pay Issues arising During, After Shutdown
FERS Retirement Guide 2025 – Your Roadmap to Maximizing Federal Retirement Benefits
