Coverage would begin the first pay period the employee is in paid status and applies to join the program. Image: Valeri Luzina/Shutterstock.com
By: FEDweek StaffOPM has proposed to put FEHB coverage into effect more quickly for federal employees who enroll after first becoming eligible — which most commonly happens on hiring but also applies when an employee changes from a position that doesn’t convey FEHB coverage to one that does, or when a temporary employee completes one year of service.
Under current policy, the roughly 230,000 who become eligible each year for those reasons have 60 days to apply for coverage, which is effective no earlier than the start of the first full pay period after they are in paid status and enroll.
The proposed rules in the February 1 Federal Register would begin coverage as of the beginning of the first pay period the employee is in paid status and applies to join the program. An employee who does not apply within the first pay period still would have the remainder of the 60 days but coverage would not begin until the pay period following the application.
Says the notice: “The changes proposed in this rulemaking can work to ensure more timely access to health insurance which may in turn assist in reducing financial burdens for care received while uninsured and removing barriers to consistent care for services such as mental health services, vaccines, and contraceptives. OPM believes that permitting health insurance coverage to become effective at the start of employment could reduce the risk of new employees enduring coverage gaps and potentially costly medical bills associated with such gaps and also act as an attractive recruitment tool in building a well-qualified, robust workforce.”
The change also would apply to the Postal Service Health Benefits Program, a carve-out from the FEHB that is to begin next year, the notice says, and would mirror the policy already in effect in the FEGLI life insurance program and in many private sector employer health programs. However, it would not apply to the effective dates of coverage in the FEDVIP vision-dental insurance program or to the FLTCIP long-term care program—the latter of which is not accepting new enrollments at least through this year.
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See also,
Calculating Service Credit for Sick Leave At Retirement
FERS Supplement vs The 10% Pension Bonus
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Where Should I Put My TSP in Retirement
