Understanding Federal Health Insurance (FEHB) for Government Employees

The United States Office of Personnel Management provides federal government employees with optional health care benefits coverage. Government workers may select from a menu of optional coverage plans, such as general health care coverage and vision coverage.

Significance

• The Federal Health Plan, known as FEHB provides general health care to employees. Coverage is optional and deducted through pre-tax dollars. The federal government employer typically subsidizes a partial amount of the cost.

Features

• The federal government's dental and vision plan allows government employees optional coverage for enrolling with payment through pre-tax dollars. It is typically not an employer-subsidized coverage plan, so the employee is responsible for paying the full premium amount.

Identification

• In general, there is no pre-existing illness exception for any of the plans.

Benefits

• Employees also are offered pre-tax savings through the federal health flexible care program. This program allows federal government employees to save money with pre-tax allowances to cover qualified health care costs.

Considerations

• The federal government also allows employees to contribute to palliative care, nursing facilities and home health care for themselves or their dependents, through a long-term health program.