Pre-Tax Payment of Premiums Mandatory

As in FEHB, premiums for FEDVIP plans will be deducted from pay for active employees on a pre-tax basis, but unlike in FEHB, this “premium conversion” arrangement will be mandatory (retirees are not eligible for this favored tax treatment under either program). Also, in general, enrollees will be able to cancel FEDVIP coverage only during the annual open seasons but eligible persons will be able to enroll or change enrollment outside of open seasons when experiencing certain “qualifying life events” such as marriage.