FEHB Premium Conversion

Starting in October 2000 Federal employees began to pay for FEHB coverage using pre-tax dollars UNLESS PARTICIPATION WAS WAIVED. The program is called Premium Conversion and it will normally save you money because you will pay your share of your FEHB premiums from pre-taxed money. This plan is similar to the private sector, which has allowed their employees to deduct health insurance premiums from their taxable incomes for many years.

You may change your participation status in premium conversion during the annual FEHB open enrollment period, or during the calendar year if you have a qualifying life event. Qualifying life events include marriage, birth of a child, or change in a spouse's employment.

Enrollment or participation in premium conversion ends if you terminate or are terminated from Federal government employment. If you are eligible and elect to participate in Temporary Continuation of Coverage (TCC), you pay those premiums directly on an after-tax basis.

For detailed information including pros/cons see the