FEHB Open Season Information and Top 5 Health Benefits Mistakes for Federal Employees to Avoid

As the upcoming FEHB Open Season approaches, it’s a good time to review the five biggest mistakes that federal employees, retirees, and their families can make when it comes to picking a new health plan under the Federal Employee Health Benefits (FEHB) or Postal Service Health Benefits (PSHB) programs. The 2025 Open Season for 2026 plans will begin on the following date: November 10. It ends on December 8. 

Learn more at our annual FEHB Open Season Webinar for active and retired federal workers and their families.

Mistake 5: Not Understanding How FEHB Plan Works with Medicare

Many federal employees and retirees assume their FEHB plan will seamlessly cover all healthcare needs in retirement, but failing to understand how it interacts with Medicare can lead to costly gaps and missed opportunities. Without knowing whether to enroll in Medicare Part B, for example, retirees might face unexpected out-of-pocket expenses, limited provider access, or penalties for late enrollment. Some FEHB plans coordinate well with Medicare, reducing deductibles and copays, while others do not. Misunderstanding this relationship can result in paying for redundant coverage or, worse, lacking critical protection when health needs escalate. For PSHB, Medicare B is required to participate.

Mistake 4: Not Utilizing an FSA or HSA for Qualified Medical Expenses

Skipping an FSA or HSA means leaving tax savings on the table, especially for federal and postal employees with predictable medical expenses. FSAs, available through FSAFEDS, let you use pre-tax dollars for out-of-pocket costs like copays, prescriptions, and dental work, reducing your taxable income. HSAs go further: they offer triple tax advantages (pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified expenses) and can act as a long-term investment vehicle. For those enrolled in high-deductible health plans, an HSA can build a powerful cushion for future healthcare costs. Ignoring these tools can mean paying more than necessary and missing a chance to grow tax-efficient savings.

Mistake 3: Not Considering a High-Deductible Health Plan (HDHP)

Overlooking a High Deductible Health Plan (HDHP) during FEHB open season can mean missing out on long-term savings and flexibility. HDHPs often come with lower premiums and pair with Health Savings Accounts (HSAs), which offer triple tax advantages and can accumulate funds for future medical expenses, even in retirement. Many federal employees dismiss HDHPs due to the higher deductible, but for those with minimal annual healthcare costs or who want to build a tax-efficient safety net, they can be a smart financial move. Not considering one is a mistake rooted in short-term thinking.

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Mistake 2: Assuming Some FEHB Plan Types are Cheaper than Others

Misunderstanding FEHB plan types can quietly drain a federal retiree’s budget. Many assume “self plus one” is the most cost-effective choice for married couples, but in some cases, “self plus family” actually comes with lower premiums, especially as you get older. Similarly, when both spouses are federal employees, opting for two “self only” plans might seem logical, but it can end up costing more than a shared self and family enrollment type. These pricing quirks vary by carrier and plan, and overlooking them during open season can lead to unnecessary expenses year after year.

Biggest Mistake Retired and Active Federal Employees Should Avoid During Open Season

The biggest mistake federal employees can make during open season is defaulting to last year’s health plan without reevaluating their options. FEHB plans change annually: premiums, deductibles, provider networks, and prescription coverage can shift in ways that directly impact your costs and care. By not reviewing the updated plan brochures or comparing alternatives, you risk overpaying, missing out on better coverage, or sticking with a plan that no longer fits your health needs.

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Understanding FEHB Open Season

The Federal Employees Health Benefits (FEHB) Open Season is a crucial period for federal employees and retirees to review and adjust their health benefits. This is the time to make informed decisions about your health plan, dental and vision coverage, and flexible spending accounts. Understanding the FEHB program and navigating the open season effectively can significantly impact your healthcare costs and coverage for the upcoming year.

What is FEHB Open Season?

The FEHB open season, also known as the federal benefits open season, is an annual opportunity for federal employees and retirees to enroll in, change their health benefits, or make changes to their health benefits. During this open season election, federal employees and retirees can select a new FEHB plan, change their enrollment type, or enroll in the FEHB program for the first time. This federal health benefits open season provides a chance to assess your current benefits and explore plan choices that best meet your family’s needs.

Importance of Open Season for Federal Employees

For federal employees and retirees, the open season is vital for several reasons. It’s the prime time to review your current benefits and consider any significant plan changes. You can evaluate whether your current FEHB plan still meets your needs, or if a different option from the available plan choices would offer better coverage or lower premium costs. The open season is the only time outside of qualifying life events when you can adjust your health insurance coverage, dental and vision insurance program, and flexible spending account benefits.

Making Informed Enrollment Decisions and Evaluating Plans

To effectively evaluate FEHB plans, it’s important to follow a structured approach. Begin by assessing your healthcare needs and those of your family. To help with this assessment, consider things like:

• The frequency of doctor visits.
• Prescription medications you take.
• Any chronic conditions you may have.

Then, carefully review the plan brochures and compare the benefits, premiums, co-pays, and deductibles of different FEHB options. Don’t hesitate to use the open season resources available to you to make an informed decision about choosing a health plan.

Tips for a Successful Enrollment

To ensure a successful FEHB enrollment during the open season, start by setting aside dedicated time to review your options. Gather all relevant information, including your current plan details and any notices about plan changes for 2026. Comparing different FEHB plan options involves several steps, including:

1. Evaluating options based on your healthcare needs.
2. Considering your budget.

New Postal Service Health Benefits: Overview of PSHB

The introduction of the New Postal Service Health Benefits presents a notable change for many federal employees and retirees, particularly those connected to the Postal Service. This new health plan option aims to provide specialized benefits tailored to the needs of postal employees and their family members, offering similar premium structures and coverage options compared to standard FEHB plans. 2025 was first plan year for new program, plans effective January 1, selected during the 2024 Federal Benefits Open Season. 

Impact on Postal Employees and Retirees

The impact of the New Postal Service Health Benefits on postal employees and retirees could be significant. Depending on the specific plan choices and the terms negotiated, this new option might offer more affordable premiums, enhanced coverage for specific healthcare services, or access to a different network of providers. For those eligible, the annual open season provides an opportunity to carefully evaluate the potential advantages and disadvantages of enrolling in this new plan versus remaining in their current FEHB plan.

Enrollment Process for Postal Service Health Benefits

Postal employees and eligible family members may enroll in the New Postal Service Health Benefits will likely be similar to that of other FEHB plans during the annual open season. Eligible federal employees and retirees will be able to enroll through the established channels, such as the OPM website or their agency’s human resources department. It’s essential to pay close attention to the federal health benefits open season and follow all instructions carefully to ensure timely enrollment and avoid any disruption in health insurance coverage. Understanding the timeline is key for a smooth enrollment.

Preparing for Future Open Seasons: Strategies and Resources

Long-term health benefits planning requires careful consideration of your future healthcare needs and financial situation. Federal employees and retirees should evaluate their current FEHB plan, consider potential changes in their health status, and assess their ability to afford premiums and out-of-pocket costs in the years to come. Exploring options like the federal employees dental and vision insurance program (FEDVIP) and  federal flexible spending accounts (FSAs) can also help you maximize your benefits and manage healthcare expenses effectively during this federal flexible spending open season.