Federal employees and federal retirees are covered under the Federal Employee Health Benefits Program (FEHBP), but that doesn’t mean they will not be affected by a possible repeal of the Affordable Healthcare Act, better known as Obamacare. In fact, repealing Obamacare will directly affect current employees and retirees, many of whom participate in Medicare, which benefits greatly from Obamacare provisions.
Most federal employees are eligible to participate in Medicare Part A (hospital insurance) at age 65 because they have paid into the program through payroll tax while working. Even though they may already have health insurance through FEHBP, the Office of Personnel Management (OPM) encourages them to enroll in Medicare Part A because it can reduce their out of pocket expenses and FEHBP costs, which helps moderate FEHBP premiums.
Federal retirees with higher healthcare needs also opt for Medicare Part B (medical insurance), which provides coverage for areas not covered by their FEHBP plans. Medicare Part B beneficiaries pay a monthly premium and are subject to deductible payments for some services, though under the ACA, some preventive health services are provided at no cost to them.
Many federal employees who are 65 or older and still working are enrolled in Medicare. And in these cases, Medicare is their primary insurance and FEHBP is supplementary. Any cuts to Medicare will affect them.
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