Premiums are negotiated annually between the Office of Personnel Management and each insurance carrier. The maximum government contribution is 72 percent of the weighted average cost of all plans, not to exceed 75 percent of the cost of any specific plan.
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All employees in the Executive Branch who are participating in the FEHB and whose pay is issued by an Executive Branch agency are eligible to have their premiums paid with pretax dollars.
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Medicare Part A will help cover some of the costs that an FEHB plan may not cover, such as deductibles, coinsurance, and charges that exceed the plan’s allowable charges. There are other advantages to enrolling in Part A, such as being eligible to enroll in a Medicare managed care plan.
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