As a federal employee, most people probably want to talk about the fantastic retirement benefits. However, there’s more to being a federal employee than retirement. After retirement, for example, you have access to something that hasn’t always been available – a selection of insurance benefits.
Before the millennium turn, retirees had to choose between the Federal Employees Health Benefits program and the Federal Employees Group Life Insurance. Essentially, they both said that coverage could continue even after retirement and leaving the world of employment. Then, in 2000, ‘premium conversion’ was considered in a federal sense, and premiums could be bought using pre-tax dollars. After it found success with employees, it quickly expanded, and we saw the introduction of the Federal Employees Dental and Vision Program.
From here, it snowballed, and we welcomed the Federal Long-Term Care Insurance Program. Here, federal employees could protect assets and savings if long-term care was required by either the worker or a close family member, and it became a ground-breaking plan. As of late 2019, we have the FLTCIP 3.0 with comprehensive coverage, premium stability, and a stay-at-home benefit.
People will often say that premiums for long-term care insurance aren’t tax-deductible from retirement benefits or salaries. However, you can pay premiums through health savings accounts.
If we look back to 2003, this saw the beginnings of a new flexible spending account program for federal workers. Now called FedFlex, those who have adopted the plan can also participate in FSAFEDS or Federal Flexible Spending Account Program. With FSAFEDS, federal workers can use a Health Care or a Limited Expense Health Care flexible spending account to pay for any health care expenses that arise. If there are expenses that the dental/vision plan or health plan doesn’t cover, this savings account comes in to help. Of course, these types of accounts must be used for eligible expenses under the guidelines; an unused balance is forfeited, and expenses must have been generated during the year in question.
If you’re looking to carry over a balance from an HCFSA or LEX HCFSA, the maximum amount allowed from 2020 to 2021 is $550. As the COVID-19 pandemic gripped the country, participants in an FSAFEDS were allowed to make election changes during a 60-day window thanks to the Office of Personnel Management (this ended on August 29th).
For those with eldercare or young children expenses, there’s a dependent care FSA available with FSAFEDS.
Examples of eligible health care FSA expenses include:
• Vasectomies
• X-rays
• Acupuncture
• Wheelchairs
• Adoption fees
For dependent care FSA funds, they can go towards:
• Babysitting (work-related)
• After-school programs
• Senior daycare programs
• Nursery school
If you have a health savings account and a high deductible health plan, the LEXFSA will allow funds to be used for a host of vision and dental services. If you want to learn more about eligible expenses, head over to the FSA website.
As you may know, the next health benefits open season will run from November 9th to December 14th, and we’re set to learn more about what will happen in the coming weeks. For example, we know that the Federal Employees Dental and Vision Insurance Program will welcome one new vision and two dental packages; the latter will be HealthPartners as a regional plan and UnitedHealthCare PPO.
With a significant chunk of federal employees still working from home, this open season will undoubtedly be unique. Since fairs and events will be canceled or reduced in size, FedPoint is hosting a virtual event. Be sure to check this, and others like it, so you don’t miss out on open season this year
Contact Information:
Email: [email protected]
Phone: 6232511574
Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then 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, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.
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