The Federal Employees Health Benefits Program
The majority of people are insured through their employment. Although the private insurance companies are high-profile, their individual plans tend to be expensive and so not affordable to those on an average or lower income. That puts a high premium of people being able to find work with an employer offering a good health plan. In this, one of the best plans is offered by the federal government. Indeed, the Federal Employees Health Benefits Program (FEHBR) offers a wide range of insurance plans covering health, dental and vision, with options to apply for long-term care and life insurance, helping both current employees and retirees enjoy a good standard of care.
Standing back for a moment, there’s a universal truth underlying all health plans and their economics. If this was a perfect world, we would all earn the lowest premium rates by living and working in a completely accident-free zone. We would never meet anyone else with a contagious or infectious disease so we would never fall ill. Our medical history would show all our family members lived to the average life expectancy without any major health problems and needing no long-term care. And just to show we mean to follow in the family tradition, we do not drink, smoke, eat an unhealthy diet or do anything dangerous like climbing mountains or practicing parkour. Unfortunately, it’s impossible to organize your life in this way. Unless you have your own bubble to protect you as you meet other people, and never drive to and from work, you are always likely to catch the latest bugs and get into accidents. That said, the range of plans on offer from the FEHBP is genuinely impressive.
If you are considering a job with the federal government or you are already employed, here are a few quick pointers that will also help others asked to choose between several competing plans. Remember the point of any insurance is to protect you against the worst possible situations. So, instead of looking at how each of the plans responds to the routine medical problems, consider what would happen should you suffer catastrophic injury or run into a chronic disease like cancer. The key factor is how much you would have to pay out of your own pocket in such situations. Beware the high deductibles in policies including the serious injuries and chronic diseases. Now look at whether there are plans allowing you to claim tax benefits. Some savings account plans and Flexible Spending Accounts give a tax break and allow the money saved to be used in ways not always available under the conventional health plan.
Finally, look at what will happen at retirement. Under FEHBR, you must be a member of the plan for at least five years before you can take any of the plans into retirement. Think very carefully about the family plan. Should you die before you take out this plan, your spouse will have no cover. The rules of every group health insurance plan are different on issues such as this. This means not only taking care when deciding what plan to accept when taking up the first job, but also reviewing the plan as you age. Group health insurance is always good value but, with care, it can be the best.