FEHB Program Handbook Introduction

General Overview

The Federal Employees Health Benefits (FEHB) Program became effective in 1960. It is the largest employer-sponsored group health insurance program in the world, covering over 8 million Federal employees, retirees, former employees, family members, and former spouses.

Tribal Employer Note: This Handbook apples to Indian tribes, tribal organizations, tribal schools, and urban Indian organizations (collectively, tribal employers) participating in Tribal FEHB Program. The annotation "Tribal Employer Note" found throughout the Handbook, indicates certain aspects of the FEHB Program which do not apply or applies differently, for tribal employers and employees. Not all Indian tribes, tribal organizations, tribally controlled schools, and urban Indian organizations have chosen to participate in the FEHB Program. A tribal employee should contact their tribal employer to determine whether tribal employees are eligible to purchase coverage under the FEHB Program.  Annuitant, survivor annuitant, or an individual with entitlement to an annuity" refers to Federal retirement systems only. Former spouses are not eligible for spouse equity in the FEHB Program.

PSHB Note: Postal Service employees and annuitants are covered under Postal Service Health Benefits (PSHB), which different from FEHB in important ways including a calendar-year plan cycle for all PSHB enrollees, a Medicare Part B enrollment requirement for certain Medicare-eligible annuitants and family members, and integration of prescription drug coverage through an Employer Group Waiver Plan (EGWP). For PSHB rules, brochures, and enrollment actions, consult the PSHB Program and PSHB Brochures pages. The annotation "PSHB Note" found throughout the Handbook, indicates certain aspects of the FEHB Program which do not apply or applies differently, for PSHB.

Law and Regulations

Public Law 86-382, enacted September 28, 1959, created of the FEHB Program; the current law governing the Program is chapter 89 of title 5, United States Code. The 1959 Act became effective generally on the first day of the first pay period that began on or after July 1, 1960. It authorized the Civil Service Commission (now the Office of Personnel Management) to write any regulations necessary to carry out the Act. These regulations are in part 890 of title 5 and chapter 16 of title 48, Code of Federal Regulations.

Tribal Employer Note: The Patient Protection and Affordable Care Act, Public Law 111-148, incorporated and enacted S. 17910, the Indian Health Care Improvement Reauthorization and Extension Act of 2009, resulting in the addition of section 409 to the Indian Health Care Improvement Act (IHCIA); codified at 25 U.S.C. 1647b). Under IHCIA section 409, an Indian tribe for tribal organization carrying out program under the Indian Self Determination and Education Assistance Act (ISDEAA), or an urban Indian organization carrying out programs under title V of IHCIA, is entitled for purchase coverage, rights, and benefits under the FEHB Program for the employees.  The Consolidated Appropriations Act of 2021, Public Law 116-260, amended section 409 of the IHCIA (25 U.S.C. 1647b). Under 25 U.S.C. 1647b, an Indian tribe or tribal organization carrying out programs under the Tribally Controlled Schools Act (TCSA) (25 U.S.C. 2501 et esq.) is entitled to purchase coverage, rights, and benefits under the FEHB Program for their employees.

PSHB Note: Public Law 117-108 enacted April 6 2022, created the PSHB Program as a result of the Postal Service Reform Act (PSRA) of 2022.

FEHB Handbook

This Handbook provides the policies and procedures of the FEHB Program and provides additional guidance to employing offices. These policies and procedures reflect operations under title 5, United States Code. This guidance does not cover any authority that individual agencies, such as the U.S. Postal Service, may have under different laws.

Enrollment

As a Federal employee, you are entitled to enroll yourself and cover any eligible family members in a health plan offered under the FEHB Program, unless your position is excluded from coverage by law or regulation. If you meet the requirements, you will be eligible to continue group coverage into retirement.

There are three types of enrollment: Self Only, Self Plus One and Self and Family. A Self Plus One enrollment covers you and one eligible family member you designate to be covered. A Self and Family enrollment covers you, your spouse, and your children under age 26.

Premiums

Each health plan carrier under the FEHB Program charges a different premium. The Government pays up to 75% of the cost of your health benefits coverage, and you pay the remainder, based on a formula set by law.

Tribal Employer Note: The employer contribution (at a minimum) must equal the amount of the Government contribution established by OPM each year. However tribal employers have the option to pay up to 100% of the FEHB premium.

Who Provides the Coverage?

Over 200 health plans choices are offered under the FEHB Program. Of the available fee-for-service plans, several are open to all enrollees, while others are available only to specific categories of employees. In addition, health maintenance organizations (HMOs) are available in most areas of the United States; you must live or work within a defined area to be eligible to enroll in a particular HMO.

Opportunities to Change Coverage

Each year, an Open Season is held for FEHB Program enrollees to change health plans and/or the type of enrollment they have. Eligible employees may also enroll during this time. Open Season runs from the Monday of the second full workweek in November through the Monday of the second full workweek in December.

There are limited opportunities to enroll, cancel your enrollment, or change your enrollment outside of an Open Season.

Contractual Benefits

Each carrier contracts with the Office of Personnel Management to provide certain health benefits to all persons who enroll in its participating plan. Contract negotiation is a bilateral process, and both OPM and the carrier must approve the final contract. Contract periods are usually one year. Individual policies or contracts are not issued to FEHB Program enrollees.

Once benefits have been agreed upon, OPM and each carrier jointly prepare a brochure describing each plan approved under the FEHB Program. This brochure is intended to be a complete statement of benefits available to the enrollee, including the plan's benefits, limitations, and exclusions.

Legal Actions

The District Courts of the United States have original jurisdiction, concurrent with the United States Court of Federal Claims, in any civil action or claim against the United States founded upon the law. Actions to recover on claims for health benefits must be brought against OPM. Actions to review the legality of OPM's regulations or a decision made by OPM must be brought against OPM. Actions to compel enrollment must be brought against the employing office that made the enrollment decision.

Tribal Employer Note: If a tribal employee believes the tribal employer has made an erroneous FEHB enrollment decision, the tribal employee may seek review by an independent dispute resolution panel as described in 5 CFR 890.1415. If an employee disagrees with the panel's decision, the employee may seek reconsideration from OPM. OPM's decision will be binding on the tribal employer.

Garnishment

Your plan's carrier may garnish your pay to collect debts you owe to it. Garnishment could occur, among other reasons, if you fail to pay deductibles and copayments or if the carrier overpaid claims in error. Federal employee retirement benefits may not be garnished for this purpose.

Your employing office must follow the provisions of 5 CFR part 582 to process a garnishment. These regulations protect some pay from garnishment, such as amounts to cover health benefits premiums and Basic life insurance withholdings. However, amounts to cover Optional life insurance withholdings are not protected. See the FEGLI Handbook for additional information about the effect of garnishment on life insurance coverage.

Tribal Employer Note: An employee's carrier may use any legal means necessary to seek recovery of debt. This could occur, among other reasons, if the carrier overpaid claims in error.

OPM Responsibilities

OPM has the overall responsibility for the administration of the FEHB Program. This includes:
• contracting for and approving or disapproving carriers for participation in the FEHB Program;
• negotiating benefit and rate changes with carriers;
• approving the certified text on benefits for the brochures;
• publishing FEHB regulations, instructions, forms, and documents;
• receiving and depositing premium withholdings and contributions, remitting premiums to carriers, and accounting for the Employees Health Benefits Fund;
• making final determinations of the applicability of the FEHB law to specific employees or groups of employees;
• studying and evaluating the operation and administration of the FEHB law and the plans offered under it, and reporting findings to Congress;
• ordering corrections of administrative errors if it would be against equity and good conscience not to do so;
• providing guidance to agencies;
• auditing carriers' operations under the law;
• resolving disputed health insurance claims between the enrollee and the carrier;
• conducting employing agency FEHB responsibilities for retired employees and survivor annuitants.

Tribal Employer Note: Annuitant, survivor annuitant, or an individual with entitlement to an annuity refers to Federal retirement systems only.

PSHB Note: Subject to limited exceptions, Postal Service annuitants and their family members who are entitled to Medicare Part A must enroll in Medicare Part B to be eligible to continue PSHB coverage into retirement.

Agency Responsibilities

Headquarters Benefits Officer

Tribal Employer Note: Employing agency, employing office, or agency is deemed to include tribal employer.

The head of each agency must designate a person to serve as the headquarters benefits officer (Benefits Officer) for the agency. The agency head must notify OPM in writing of the designee's name or any change in the designation. The Benefits Officer is OPM's contact for agencywide insurance matters.

Agency heads can send their notification to Office of Personnel Management, Retirement and Insurance Service, Agency Services Division, P.O. Box 57, Washington DC 20044 or fax the notification to 202-606-1108.

Tribal Employer Note: Tribal Employers designate their Tribal Benefits Officers through the National Finance Center (NFC).

Field Installation Responsibilities

The head of each agency must arrange for the designation of employees at the employing office level. This person will be responsible for explaining the FEHB Program to employees and other eligible persons. He/she will determine individual eligibility for enrollment, effective dates of health benefits actions, and other related matters.

An agency may also delegate responsibility for counseling and advising employees and maintaining records to decentralized local operating offices or field installations or provide the services in some other way.

Information and Counseling

Each agency has a responsibility to provide health insurance information and counseling to its employees. Agencies must become especially familiar with the participation requirements for continuing FEHB coverage into retirement and make this information available to employees, especially those considering retirement. OPM encourages agencies to develop counseling programs that meet the needs of their own employees. While these services must be provided, agencies are using many different approaches. Specific information on resources within your agency should be available to you at your work site.

Tribal Employer Note: FEHB coverage is not available after retirement of a tribal employee.

PSHB Note: PSHB coverage is available after retirement for Medicare-eligible employees enrolled in Medicare Part B.

Contacts between Employees and Carriers

Authorized agency insurance officials should develop contacts with carrier representatives to assist their employees. These contacts must be limited to agency personnel who have FEHB Program responsibilities and to those employees enrolled in the carrier's plan, except during an Open Season. An agency may allow carrier representatives on agency premises to help enrollees with claim or service problems.

A carrier representative may give information only about the plan's benefit provisions and claim procedures. Carrier representatives must be qualified to explain and assist with problems involving the plan's benefit structure and claims procedures and they must confine themselves to these matters. If you have any other questions, such as questions on the law, the regulations, or the FEHB Program in general, you should ask authorized agency insurance officials.

Carrier representatives may address groups of employees during Open Seasons about their plan's benefits structure, methods of obtaining services, and similar matters. An agency may allow the use of its facilities or services for the distribution of OPM-authorized, carrier-supplied information on health benefits plans. An agency must treat employee organization carriers in accordance with current policies on labor-management relations in the Federal service, found in chapter 71 of title 5, United States Code.

Distribution of materials is limited to official brochures and other carrier-supplied information on a health insurance plan that the carrier certifies are in compliance with OPM's supplemental literature guidelines.

Employing Office Questions

Employing office questions concerning the FEHB Program must be directed to the headquarters Benefits Officer. This person may refer questions to OPM's Insurance Services Program. Questions about the benefits or claims procedure of a specific plan should be directed to a local office of that plan.

Other Agency Responsibilities

Agencies also are responsible for:

• providing eligible persons with information on their rights and responsibilities under the FEHB Program and ensuring that they have free choice among all plans in which they are eligible to enroll;
• determining the eligibility or ineligibility of, and enrolling employees, former employees, former spouses, and children (including decisions on belated enrollment and change of enrollment requests);
• reviewing enrollment reconsideration requests;
• ensuring that election forms are properly completed, including the enrollee's social security number;
• processing health benefits actions and determining proper effective dates;
• determining capability of self-support of children 26 and over;
• stocking and distributing health benefits forms and literature;
• maintaining a controlled system of transmitting health benefits enrollment information to carriers;
• remitting and accounting for withholdings and contributions;
• maintaining and certifying necessary records;
• working with carriers to reconcile enrollment records.

Tribal Employer Note: Due to use of a paymaster, the following processing differences exist. inputting health benefits enrollment information into the Tribal Insurance Processing System (TIPS); and working with the paymaster to reconcile enrollment records.

PSHB Note: OPM and each PSHB Carrier must reconcile PSHB enrollment records.

Carrier Responsibilities

Each carrier is responsible for:

• adjudicating claims of, and providing health benefits to, enrollees and covered family members in accordance with its contract with OPM;
• typesetting, printing, and distributing brochures;
• furnishing each person enrolled in its health plan an identification card or other evidence of enrollment;
• contacting and working with agency payroll offices to reconcile enrollment records;
• acting on enrollee requests for reconsideration of disputed claims;
• maintaining financial and statistical records and reporting on the operation of its plan;
• developing and maintaining effective communication and control techniques to ensure that its subcontractors and local offices comply with regulations and OPM instructions.

Identification Cards

Your plan carrier will mail your identification cards directly to you. You will receive a new identification card if you change the type of enrollment within your plan or if your name changes. You will not receive a new identification card if you retire or change payroll or employing offices without changing your enrollment.

If you want a duplicate identification card, you must request the card from your carrier. Include in the request your date of birth, social security number, and any additional identifying number the plan may use. Your carrier will not display your social security number on your identification card.

Claim Kits

Some carriers provide claim kits as a convenient way for you to maintain claims expense records. Generally, carriers issue the kits to their enrollees at the same time they issue identification cards. Employing offices wanting information copies of these kits may obtain them from the nearest office of the plan.

Enrollee Responsibilities

Your responsibilities include:

• being aware of your plan's benefit package and premium charges;
• being aware of your plan's exclusions and limitations;
• reviewing the benefit and rate changes made to your plan during Open Season;
• during Open Season, determining whether your plan will still meet your needs in the upcoming year;
• filing the appropriate forms with your employing office or electronic enrollment system on a timely basis to enroll, change, or cancel enrollment;
• ensuring that the proper deduction has been recorded on your earnings and leave statement;
• examining plan provider directories or checking directly with a health care provider to see if that provider participates or will continue to participate in any plan networks or preferred provider arrangements;
• being aware of and following plan precertification and preauthorization requirements;
• filing claims on a timely basis with the necessary documentation;
• being aware of requirements for continuing your enrollment into retirement;
• promptly asking your employing office for information about temporary continuation of coverage if a family member ceases to be eligible under your enrollment;
• promptly requesting conversion to an individual contract when FEHB eligibility ends;
• notifying the carrier of your plan when your address changes;
• notifying your agency or retirement office when you are switching a covered family member on your Self Plus One enrollment;
• notifying the carrier of your plan when a new family member is added to your Self and Family enrollment;.
• notifying the carrier of your plan when a family member is no longer eligible under your Self and Family enrollment.

Tribal Employer Note: Annuitant, survivor annuitant, or an individual with entitlement to an annuity refers to Federal retirement systems only. FEHB coverage is not available after retirement of a tribal employee.

Health Insurance Questions

If you are a current employee, a former employee or family member covered under temporary continuation of coverage (TCC), a compensationer, or a former spouse of a current employee, you must direct questions about the FEHB Program to your servicing employing office. If you are an annuitant or a former spouse whose divorce occurred after the enrollee left Federal service, you can direct your questions to OPM's Retirement Information Office at 1-88USOPMRET (1-888-767-6738) or (202) 606-0500 from the metropolitan Washington area, or you can write to OPM's Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.

Questions from agency personnel offices and field installations must be directed to the agency headquarters Benefits Officer.
Designated headquarters Benefits Officers can direct their questions to OPM, Center for Retirement and Insurance Service, Human Resources Products and Services Division, Insurance Services Program, Washington, DC 20415. Questions also may be sent through the email address on the OPM website.

Tribal Employer Note: Tribal employer state compensationers are eligible to continue FEHB while on leave without pay (LWOP), see the Leave Without Pay Status and Insufficient Pay chapter of the FEHB Handbook. The provisions of the Spouse Equity Act that provides FEHB coverage to former spouses do not apply. A spouse who loses FEHB coverage because of the death of a tribal employee is not eligible for FEHB or Temporary Continuation of Coverage (TCC) coverage as they are not a former spouse; however, are entitled to conversion. Those covered under TCC must direct questions about the FEHB Program to the tribal employer. OPM will not answer employee questions and direct them to the Tribal Benefits Officer (TBO). Designated TBOs can direct questions to tribalprograms@opm.gov.

PSHB Note: Designated USPS headquarters Benefits Officers can direct questions to PSHB@opm.gov.

Customer Service Standards

Our customers include Federal employees and retirees, or their survivors, who are eligible to enroll in the FEHB Program. This is our commitment to our health benefits customers:

• Your choice of health benefits plans will compare favorably for value and selection with the private sector.
• When you use the FEHB Guide and plan benefit brochures, you will find they are clear, factual and give you the information you need.
• When you change plans or options, your new plan will issue your identification card within 15 calendar days after it gets your enrollment form from your agency or retirement system.
• Your fee-for-service plan should pay your claims within 20 work days; if more information is needed, it should pay within 60 calendar days.
• If you ask us to review a claim dispute with your plan, our decision will be fair and easy to understand, and we will send it to you within 60 calendar days. If you need to do more before we can review a claim dispute, we will tell you within 14 work days what you still need to do.
• When you write to us about other matters, we will respond within 30 calendar days after we get your letter. If we need time to give you a complete response, we will let you know.

Tribal Employer Note: FEHB coverage is not available after retirement of a tribal employee.

PSHB Note: PSHB coverage is available after retirement for Medicare-eligible employees enrolled in Medicare Part B.

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