What You Need to Know: Insurance Benefits

Almost all federal jobs come with eligibility to enroll in four types of insurance: health, life, dental/vision and long-term care. In each case the benefits are provided not by the government itself but by private sector companies under contract and premiums that are set at lower, group rates.

The health insurance program and the dental/vision program allow employees to choose from a number of providers. Those two programs conduct an open enrollment period each autumn, with choices effective at the start of the calendar year.

The life insurance and long-term care insurance programs offer benefits through only one company each, but the benefits can be tailored in a variety of ways. Eligible persons may enroll in the long-term care program at any time; there are restrictions on enrolling in the life insurance program later than two months after hiring.

Each program is voluntary. The large majority of employees enroll in the health insurance and life insurance programs, in part because the government contributes toward the cost. The cost of long-term care insurance and dental/vision insurance is paid entirely by the enrollees and enrollment in them is lower, in part for that reason and in part because those two programs are relatively new.

Enrollment, or lack of it, in one of the programs does not affect eligibility to enroll in another.

Another good feature of the programs is that generally, coverage in each can be carried into retirement. However, none of them cover domestic partners.

Here's a rundown:

Health Insurance--The Federal Employees Health Benefits (FEHB) program covers employees under a group health benefits plan regardless of medical condition; there are no waiting periods and no pre-existing condition limitations. Employees may cover themselves, their spouses and unmarried dependent children under age 22.

All employees may choose from a variety of national and localized plans. The number of plans available to an individual depends largely on how many health maintenance organization plans participate in the employee's area. There are ten nation-wide plans, although some of them have restrictions on eligibility. There are nearly 300 plans in all.

On average, the government pays 70 percent of the cost. Employees can pay their share of premiums from pre-tax dollars, effectively reducing their cost.

Retirees don't get that tax break but they pay the same premiums as do active employees: a huge benefit because older people typically consume more health care.

Life Insurance--Unless they waive coverage, all employees are automatically covered under the Federal Employees Group Life Insurance (FEGLI) program, with no physical examination required. The basic benefit is equal to an employee's annual basic pay plus $2,000. Additional coverage is provided for free for employees under age 45. The government pays about a third of the premium for basic insurance.