Federal employees have something rare: FEHB coverage that can follow them into retirement for life. That leads to a very different Medicare question than most people face. You're generally not required to take Medicare to keep FEHB — but that doesn't mean skipping it is the smart move. The real question is whether adding Medicare to your FEHB improves your coverage enough to be worth the premium. Let's break it down, the SRIG way — and cover the big change that now affects postal retirees.
The Key Difference: FEHB Doesn't Force Your Hand
With most private employers, small-company rules can force you onto Medicare at 65. FEHB is different. As a federal retiree, you are generally not required to enroll in Medicare Part B to keep your FEHB coverage. Your FEHB plan can cover you for life whether or not you ever take Part B.
Still Working Past 65? You Can Wait
If you're an active federal employee past 65, your FEHB counts as current employer coverage — so you can delay Part B without a penalty. When you retire, you get a Special Enrollment Period of 8 months to pick up Part B penalty-free.
Your Three Choices at Retirement
When you retire with FEHB, your Medicare decision generally comes down to three paths:
Keep FEHB + Add Part A & B
Medicare pays first, FEHB pays second. Together they can eliminate most out-of-pocket costs. The most common choice for those who want maximum coverage.
Keep FEHB, Skip Part B
Perfectly allowed. You keep FEHB as-is with Part A only. Just know a Part B penalty applies if you ever change your mind later.
Suspend FEHB for an Advantage Plan
Some retirees suspend FEHB to try a Medicare Advantage plan (often $0 premium). Because you suspended — not canceled — you can return to FEHB later.
The One Mistake You Can't Undo: Suspend vs. Cancel
This is the single most important warning on this page. If you ever step away from FEHB to try something else, how you do it matters enormously.
Suspend — Reversible
Puts your FEHB on hold (for example, to try a Medicare Advantage plan). You can generally return to FEHB during a future Open Season or qualifying event. Your safety net stays intact.
Cancel — Permanent
Ends your FEHB for good. In most cases you cannot get it back — ever. This is the mistake that costs federal retirees one of the best benefits they earned.
Two Money Details Most People Miss
- Part B reimbursements exist. Several FEHB plans reimburse part of your Part B premium each year — but you often have to know to claim it. That can meaningfully offset the cost of Part B. We'll help you check whether your plan offers it.
- FEHB drug coverage is usually creditable for Part D. That means you can generally skip a separate Medicare drug plan without penalty. Confirm it in your plan's annual creditable-coverage notice.
Postal Retirees: The Big 2025 Change (PSHB)
New The rules are different for postal workers now.
Starting January 1, 2025, U.S. Postal Service employees and retirees moved from FEHB into a brand-new program: the Postal Service Health Benefits (PSHB) Program. The headline change: most Medicare-eligible postal retirees are now required to enroll in Medicare Part B to keep their PSHB coverage. That's the opposite of the "Part B is optional" rule that applies to regular FEHB.
There are important exceptions to the PSHB Part B requirement — for example, certain people who retired on or before January 1, 2025, those age 64 or older on that date, and some who qualify through VA or Indian Health Service benefits. The rules are detailed, and getting your specific status right matters.
The Real Question: What Do the Numbers Say?
For most federal and postal retirees, this decision is a cost-benefit comparison, not a guess. It's worth weighing:
- Your FEHB/PSHB premium, deductible, and out-of-pocket maximum vs. adding the Part B premium ($202.90 for most in 2026).
- How your specific plan coordinates with Medicare — some waive deductibles and copays when Medicare is primary, which can offset much of the Part B cost.
- Whether your plan reimburses part of the Part B premium.
- Your health, your doctors, and your prescriptions — and whether a Medicare Advantage or supplement route fits better.
Common Questions
Do federal employees have to take Medicare?
Should I take Part B if I have FEHB?
What's the difference between suspending and canceling FEHB?
Is FEHB creditable for Part D drug coverage?
What is PSHB and does it require Part B?
Your Next Step
Your federal benefits are worth protecting — and getting the Medicare piece right is where the value is won or lost:
- Watch the video above for a plain-English walkthrough.
- Pull your plan brochure so we can see how it coordinates with Medicare and whether it reimburses Part B.
- Book a Blueprint consultation — we'll run your numbers and confirm the postal rules if they apply, free.
Your blueprint is waiting. Let's build it together.