FEHB: So Many Options to Choose From
FEHB Open Season is Here
The Federal Employee Health Benefits, or FEHB open season is upon us. Federal Employees and retirees have until December 8th to make changes to their health care coverage for the upcoming year.
FEHB Covers Many and Has Many Choices
According to OPM, the FEHB covers approximately 8.2 million people, and in 2015 there will be 257 different plans to choose from. Thankfully, most plans fall into one of two categories, Health Maintenance Organization (HMO) or Fee-For-Service (FFS).
HMO Plans
HMOs offer one-stop service when it comes to your health care needs. Each HMO has a list of doctors from which you can choose a primary care physician. This physician will act as your gatekeeper to the wider array of medical services available.
Whether you have heart palpitations, a hangnail, or a persistent cough, your first stop is to the primary care physician, who will refer you to a specialist if he or she deems necessary. Many people are comfortable with these parameters, and find it convenient to leave those decisions up to their primary care doctor.
No more hours spent hunting through outdated lists of doctors who take your insurance, only to be cut off by a semi-polite receptionist who says, “I’m sorry, Dr. So-and-So no longer works here.” or, “I’m sorry, we no longer take that insurance.”
FFS Plans
Still think you should be seen by a specialist after a third visit to your primary care physician for bloating leaves you with nothing but another diet suggestion? Well, if you have an FFS plan, you have the power to refer yourself to a gastroenterologist.
Most of the FEHB’s FFS plans use a Preferred Provider Organization (PPO). Using a doctor or other provider within the PPO network will typically lower your out-of-pocket expenses.
HMO vs. FFS:
So which is better, an HMO or FFS plan? That’s the $64,000 question.
Some HMO plans are better than others, and some FFS plans are better than others. Some doctors are better than others and some patients take better care of themselves than others.
Making the Choice
If you haven’t already investigated your options, now is the time to do it. You have until December 8th to make your decision. Ask your colleagues, check the internet, get recommendations from a specialist or two.
And take heart, if you don’t like the final choice you make, there’s always another open season next year. But if you want to lower your chances of making the wrong choice, you can speak with one of our federal employee benefits financial advisors!
For over 30 years, federal employee retirement planning has been a key focus of Medallion Financial Group. We recognize that FERS retirement benefits have extra layers of complexity, such as the Thrift Savings Plan (TSP), 401K, Pension plan, FEGLI and more. It’s easy to get lost in a sea of bad advice when so few people understand the basics. We help with the basics and beyond to enable our clients to get the education and advice they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.
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