FEHB Plan Options: How to Pick What’s Right for You

if not stay tuned for the next episode of All About FERS. Hi, I'm John Rawley, Certified Financial Planner with All About FERS, and today we're going to spend time talking about one of your best benefits, one of your most costly benefits, and one of your most important benefits that you have, your FEHB, Federal Employee Health Benefit. Now I know there's a lot to discuss in a short episode, but the importance of the decisions you make on your FEHB plan can possibly be one of the biggest

financial decisions that you make for you and your family. Let's review the four main types of plans. The first one Fee For Structure Plans, FFS. There are two types of FFS plans, non PPO and PPO. FFS plans are your traditional health insurance plans. These plans pay your health provider directly or reimburse you after you've paid the doctor and filed a claim with your health insurance company, both plans PPO and non

PPO normally have a deductible and a co insurance payment. PPOs will normally save you some money, non PPOs you visit the healthcare provider of your choice. PPO policies you need to visit the healthcare provider that's in your network. This causes, sometimes non PPOs to be more expensive and require some extra paperwork. Sadly, PPOs are not guaranteed in all areas of the country. The second type of plan we're going to talk about

are Health Maintenance Organizations, HMOs. They provide a comprehensive set of services, as long as you use the doctors or hospitals affiliated with your HMO. HMOs usually charge a co-payment for a primary position and specialist visit, and generally no deductible or coinsurance for in hospital care. The third type of plan option you have are Consumer Driven Health Plan, CDHP. They give you more incentive to control the cost of your health benefit and your

healthcare. You have a designated amount you can spend, and you share a higher share of expenses after you've used up your designated amount with CDHP plans, catastrophic limits are usually higher than other common plans. The fourth type of plan we're going to talk about are High Deductible Health Plans, HDHP. These type of plans can have an annual out of pocket amount, a first dollar coverage with no deductible and a higher

amount of pocket for out of network. They also allow you to use HSAs Health Savings Account, where you can pay for medical expenses from pre-tax dollars. I just went to the OPM website, and in Florida alone, where I'm at, you have over 37 different options to choose from. Unfortunately, most of the time, the biggest decisions made in picking your FEHB plan is based not on your needs or your family's needs, but based on the

cost of the plan. Deciding your health plan through FEHB is decision that you really need to spend time on, you have incredible options to choose from and protect you and your family. To choose the right plan and do the best for your family, you really have to understand how these plants work. Now, if you don't understand it and need some help, that's great. There are resources available to you, but remember to get help from

those who understand your specific needs. I hope this sheds a little light on your options and consideration for choosing the right FEHB plan for you and your family, and of course, if you have questions, send them to us, and we may use them on the next episode of All About FERS. Until next time, Happy Planning!