The Federal and Dental Vision Insurance Program (FEDVIP) offers late-career employees and retirees special provisions of interest to fill gaps within their respective FEHB health insurance coverage. Qualified individuals are enabled to ensure coverage in all aspects of their enrollment. Although annuitants may not be eligible for FEHB, they are eligible for FEDVIP, which significantly benefits retirees unable to obtain FEHB.
For example, let’s say a retiree was facing the discontinuation in their retirement benefits, did not have FEHB for five years before retiring, or had dropped their FEHB. In any case, there are, in fact, several avenues that make a federal employee ineligible for FEHB coverage. FEDVIP is different in that, although FEHB and FEGLI have a service requirement, retirees aren’t required to have been enrolled for the five years leading up to their retirement. Compared to annuitants, active employees must pay premiums using pre-tax money. In short, this distinct difference means FEDVIP is a more expensive option in retirement than it is during active service. FEHB, by comparison, will become more costly in a similar way.
The relationship between FEDVIP and FEHB involves full or partial affiliation through health insurance carriers. Currently, FEHB-enrolled employees are not required to participate in an FEHB-sponsored vision or dental plan. Therefore, the responsibility for coordinating FEHB plan benefits lies with the program carriers as secondary payors.
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Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
