FEHB and Medicare: What Federal Employees Need to Know About Part B

Federal employees with FEHB coverage can usually delay Medicare Part B without penalty while actively employed. Federal retirees often choose to enroll in Part B because it reduces overall out-of-pocket costs — but the decision depends on your specific FEHB plan and Medicare coordination rules.

Key Rules

  • Active federal employees with FEHB can usually delay Medicare Part B without penalty — FEHB counts as employer coverage
  • Federal retirees are NOT required to enroll in Part B to keep FEHB, but many do to reduce out-of-pocket costs
  • If enrolled in both FEHB and Medicare, Medicare typically pays first for most services
  • Coordination rules and cost-sharing benefits vary by FEHB plan — check your specific plan's Medicare integration before deciding