How Long Does Federal Health Insurance Last After Quitting?

Understanding your health insurance options after federal employment is important for maintaining continuous coverage. Federal employees are accustomed to the comprehensive benefits offered through the Federal Employees Health Benefits (FEHB) program. When transitioning out of federal service, it is important to understand how your health insurance coverage will continue and what steps are required to secure it. This helps ensure there is no gap in your healthcare protection.

Immediate Coverage After Separation

Upon separating from federal employment, your standard Federal Employees Health Benefits coverage terminates at the end of the pay period in which your separation occurs. Following this, you are automatically provided with a 31-day temporary extension of coverage at no additional cost. This brief, automatic extension provides a grace period, allowing time to arrange for continued health insurance. During this 31-day period, your existing FEHB coverage remains active for all previously covered family members, but you cannot make new enrollment elections. This extension serves as a bridge to other options, such as converting to an individual contract or electing temporary continuation of coverage.

Continuing Coverage Options

Former federal employees can continue health insurance through the Federal Employees Health Benefits Temporary Continuation of Coverage (FEHB TCC) program. The Consolidated Omnibus Budget Reconciliation Act (COBRA) does not cover federal employees; instead, FEHB TCC functions similarly but is specifically designed for the federal workforce. FEHB TCC allows eligible individuals to temporarily continue coverage after their regular enrollment ends due to a qualifying event. Federal employees who separate from service are generally eligible for TCC, as are family members like children who lose coverage due to age or former spouses following a divorce. For separating employees, TCC coverage can last up to 18 months from their separation date, while for eligible family members, it can extend up to 36 months from the qualifying event.

Enrolling in Continued Coverage

To secure continued health insurance through FEHB TCC, specific procedural steps must be followed within strict deadlines. Your agency’s Human Resources (HR) office provides an election notice detailing your TCC rights and options after separation. You must elect TCC within a specified timeframe, generally 60 days from your separation date or 60 days from receiving the TCC notice from your HR office, whichever is later; missing this deadline can result in losing the TCC option. Necessary forms, such as Standard Form (SF) 2809, the Health Benefits Election Form, are available from your agency’s HR department or the Office of Personnel Management (OPM) website. After completing the form, submit it to your former employing agency’s HR office to initiate coverage, and contact your HR office for instructions and to confirm the submission method.

Cost of Continued Coverage

Continuing your health insurance through FEHB TCC involves a significant change in premium financial responsibility. While employed, the federal government contributes a portion of your FEHB premium, but under TCC, you become responsible for paying the full premium amount. In addition to the total premium, a 2% administrative fee is added to the monthly cost. Premiums for TCC are paid directly by you on a monthly basis, rather than through payroll deductions. The specific cost will vary depending on the FEHB plan you select and your chosen enrollment type (e.g., Self Only, Self Plus One, or Self and Family coverage).