Critical Deadline: 60 Days for TCC
You generally must elect Temporary Continuation of Coverage (TCC) by submitting SF-2809 within 60 days of separation or the date you received the specific RIF notice, whichever is later. Missing this deadline means permanently losing the TCC option.Overview & Timeline
When you separate from federal service due to a RIF, your Federal Employees Health Benefits (FEHB) coverage undergoes several transitions. Understanding the timeline and options is essential for maintaining continuous coverage.
Key Timeline Events
Your regular FEHB coverage as an employee ends. Your agency processes SF-2810 to terminate your enrollment.
Free 31-Day Extension Period: Your FEHB coverage continues automatically for 31 days at no cost. This provides a grace period.
Decision Deadline: You must elect Temporary Continuation of Coverage (TCC) by submitting SF-2809 within 60 days of separation or the date of the specific RIF notice, whichever is later.
If no action is taken, your FEHB coverage terminates unless you've elected TCC, converted, enrolled in a spouse's FEHB, or are eligible for retirement with continued FEHB.
If you elect TCC, your coverage can continue for up to 18 months at 102% of the total premium.
31-Day Free Extension
After separation, your FEHB coverage automatically continues for 31 calendar days at no cost to you. This extension provides time to arrange for continued coverage through one of the available options.
Key Points:
- Coverage is identical to your employee coverage.
- No premiums are charged during this period.
- All family members previously covered remain covered.
- No action is required to receive this extension.
- Continue using your current ID cards.
Strategic Tip
Schedule pending medical procedures, specialist visits, or prescription refills during this 31-day period, if possible, to maximize your free coverage.Temporary Continuation of Coverage (TCC)
TCC allows you to maintain your FEHB coverage for up to 18 months after separation. This is valuable for maintaining continuity of care, especially if you have pre-existing conditions.
TCC Features
- Same plan options and benefits as active employees.
- Covers the same family members.
- Ability to change plans during Open Season.
- No medical exam required; covers pre-existing conditions.
TCC Costs & Limits
- Premium is 102% of the total plan premium (employee + government share + 2% admin fee).
- Significantly higher cost than employee premiums.
- Limited to 18 months.
- Must apply within 60 days (see deadline above).
- Premiums paid directly (not payroll deducted).
TCC Application Process:
- Request TCC information from your agency's HR office immediately upon receiving RIF notice.
- Complete SF-2809 (Health Benefits Election Form) indicating TCC enrollment.
- Submit the completed form to your agency's HR office within the 60-day deadline.
- Await confirmation and premium payment instructions from the TCC administrator.
- Make the first premium payment promptly to activate coverage.
Spouse's FEHB Options
If your spouse is also a federal employee or annuitant with FEHB coverage, you may be eligible to join their plan as a family member. This is often the most cost-effective option.
Key Points:
- Your separation qualifies as a Qualifying Life Event (QLE) for your spouse.
- Your spouse has 60 days from your separation date to change their enrollment (e.g., from Self Only to Self Plus One or Self and Family) using SF-2809.
- Coverage is effective the first day of the pay period after your spouse submits the change.
- Premiums are at the standard employee rate (significantly lower than TCC).
- Coverage continues as long as your spouse remains eligible.
Recommendation
If your spouse is also a federal employee/annuitant, enrolling under their FEHB plan is usually the most financially advantageous option. Ensure they submit the change within the 60-day QLE window.Healthcare Marketplace (ACA) Options
The Health Insurance Marketplace created by the Affordable Care Act (ACA) provides another option. Loss of FEHB coverage due to separation qualifies you for a Special Enrollment Period (SEP).
Marketplace Advantages
- Potential premium subsidies (tax credits) based on income.
- No pre-existing condition exclusions.
- Variety of plan options (Bronze, Silver, Gold, Platinum).
- SEP allows enrollment within 60 days of losing FEHB coverage.
Marketplace Considerations
- Provider networks differ from FEHB plans.
- Deductibles and out-of-pocket maximums vary.
- Coverage typically begins the first day of the month after enrollment.
- Subsidy eligibility depends on projected annual income.
Application Process:
- Visit Healthcare.gov or your state's marketplace website.
- Create an account and complete the application, indicating loss of job-based coverage.
- Provide documentation of coverage loss (e.g., letter from agency, SF-50).
- Review available plans, compare costs/coverage, and select a plan.
- Complete enrollment and make the first premium payment.
Subsidy Eligibility
Premium tax credits depend on your estimated household income for the entire calendar year. This includes pre-separation salary, severance, unemployment, and any new income. Use the tools on Healthcare.gov to estimate potential subsidies.Retirement & FEHB Continuation
If you're eligible for retirement, including Discontinued Service Retirement (DSR) due to the RIF, you can often continue your FEHB coverage into retirement. This usually provides the best long-term value.
Eligibility Requirements ("5-Year Rule"):
- Must be eligible for an immediate annuity (including DSR).
- Must have been continuously enrolled in FEHB (or covered as a family member under FEHB) for the 5 years immediately preceding retirement, OR for the full period(s) of service since your first opportunity to enroll.
- Must elect to continue FEHB coverage on your retirement application.
Key Benefits:
- Premiums remain at the employee rate (government continues to contribute).
- Same plan options and benefits.
- Coverage continues for life (and potentially for eligible survivors).
- Premiums deducted from annuity payments.
Discontinued Service Retirement (DSR) Eligibility Check:
You generally qualify for DSR if separated involuntarily (RIF qualifies) AND:
- Age 50 with at least 20 years of creditable service, OR
- Any age with at least 25 years of creditable service.
Quick DSR Eligibility Check
Medicare Considerations
If you're approaching age 65 or already eligible for Medicare, consider how it interacts with your post-separation health options.
Key Points:
- Retiring with FEHB: You can have both. Medicare typically becomes primary payer at 65. You might choose to keep FEHB (perhaps a lower-cost plan) as secondary coverage. Enrolling in Medicare Part B may or may not be necessary immediately if you keep FEHB, but review OPM guidance carefully.
- Using TCC or Marketplace: You generally should enroll in Medicare Part A & B when first eligible (usually age 65) to avoid permanent late enrollment penalties. Your TCC or Marketplace plan may coordinate with Medicare, but Medicare becomes primary.
- Special Enrollment Period (SEP): If you delayed Medicare enrollment past 65 because you had active employee FEHB coverage, you get an 8-month SEP to enroll in Medicare Part B without penalty after your employment/FEHB ends.
Avoid Penalties
Carefully research Medicare enrollment rules based on your specific situation (retiring vs. TCC/Marketplace) to avoid lifetime late enrollment penalties for Part B and Part D.Health Insurance Option Comparison
Evaluate the key features of each option.
| Feature | 31-Day Extension | TCC | Spouse's FEHB | Marketplace (ACA) | Retirement FEHB |
|---|---|---|---|---|---|
| Duration | 31 days | Up to 18 months | Indefinite (while spouse eligible) | Annual renewal | Lifetime |
| Monthly Cost (Approx.) | \$0 | High (102% Premium) | Employee Rate | Varies (Subsidies possible) | Employee Rate |
| Provider Network | FEHB | FEHB | FEHB | Marketplace Networks | FEHB |
| Application Deadline | Automatic | 60 days* | 60 days* (by spouse) | 60 days* (SEP) | With Retirement App |
| Coverage Start | Immediate | Day 32 post-sep | Pay period after change | 1st of month after enrollment | Continuous |
| Long-term Value | Bridge Only | Moderate | High | Moderate (Income Dependent) | Highest |
| Eligibility | All | All | Eligible Fed Spouse | All Legal Residents | Retirement Eligible + 5yr FEHB Rule |
| Best For | Short-term | Bridge coverage, Continuity | Spouse is Fed | Significant Subsidies | Retiring Employees |
| *Generally 60 days from separation or notice date, whichever is later. Verify specific deadlines. | |||||
Agency-Specific Health Benefit Provisions
Some agencies may offer enhanced benefits like TCC subsidies for RIF-affected employees. Check with your specific agency's HR department.
Examples of provisions *sometimes* offered by agencies (these are NOT guaranteed and vary widely):
- TCC Subsidies: Paying the government's share of TCC premiums for a limited time (e.g., 3-6 months).
- Extended Counseling: Additional, specialized benefits counseling sessions.
- Priority Processing: Expedited handling of benefit continuation forms.
Action: You MUST contact your agency's HR or benefits office directly to inquire about any specific RIF-related health benefit provisions or subsidies available to you.