The FERS Healthcare Loophole HR Isn’t Telling You About

Every federal employee counts on their FEHB coverage to follow them into retirement.

But what if I told you that some employees lose that coverage—not because they did anything wrong, but because no one told them one critical detail?

And what if the opposite is also true—some qualify to keep it, even when it looks like they don’t?

The Overlooked Exception That Saves Retirements

It’s called the “spouse coverage loophole.”

If you were enrolled under your spouse’s FEHB plan—even if the coverage was in their name and not yours—those years might count toward the 5-year rule required to carry FEHB into retirement.

Most HR reps don’t mention it. Some don’t even know it exists.

But for some feds, it’s the difference between lifelong coverage—and thousands in unexpected costs.

The MRA+10 Trap That No One Warns You About

There’s another catch buried in the FERS fine print.

If you retire under the Minimum Retirement Age + 10 (MRA+10) option and delay your annuity, your FEHB coverage doesn’t automatically continue.

In fact, it gets suspended until your annuity starts. That means any gap in timing—even by a few days—can trigger a break in coverage.

And if that happens? You could lose eligibility entirely.

Why This Matters So Much

➡ Spouse FEHB counts. Coverage through your spouse’s federal plan may apply to your 5-year requirement—but you need to document it.

➡ Annuity start date is everything. For MRA+10 retirees, missing your timing window can mean no FEHB until it’s too late.

➡ OPM won’t fix it for you. If the coverage breaks, it's on you to notice and act—HR won't flag it, and OPM doesn’t have to offer leniency.

What Should You Do Right Now?

1. Audit your own FEHB history. Were you ever covered under your spouse’s federal health plan?

2. Check your retirement timeline. Especially if you're retiring under MRA+10—confirm your annuity starts without delay.

3. Talk to HR—but don’t stop there. Cross-check their advice against OPM guidelines. It’s your future on the line.

Most people assume their health coverage will just continue into retirement.

That’s a costly assumption.

Take just five minutes now. Because one overlooked detail could protect your most important retirement benefit for life.

—FWR

P.S. Plan to Retire Outside the US? Read This.