After you quit a federal job, your Federal Employees Health Benefits (FEHB) coverage continues for 31 days at no cost to you. Beyond that free window, you can extend coverage for up to 18 months through a program called Temporary Continuation of Coverage (TCC), though you’ll pay the full premium yourself. Those are the two main timelines, but the details around cost, dependents, and other benefits like dental, vision, and life insurance each work differently.
The Free 31-Day Extension
When you resign from federal service, your FEHB enrollment doesn’t end the moment you walk out the door. You automatically get a 31-day temporary extension of your existing health coverage at no cost. This applies to you and any family members enrolled under your plan. You don’t need to apply for it or fill out paperwork.
During this 31-day window, you have two choices to make. You can apply for Temporary Continuation of Coverage to keep your FEHB plan going longer, or you can convert to an individual (non-group) policy offered through your insurance carrier. If you do nothing, your coverage simply ends when the 31 days are up.
Temporary Continuation of Coverage (TCC)
TCC lets you stay enrolled in your same FEHB plan for up to 18 months after you leave federal service. It works similarly to COBRA in the private sector. You keep access to the same network of doctors and the same benefits you had as an employee.
The catch is cost. As a federal employee, the government paid roughly 72% of your premium. Under TCC, you pay the entire premium yourself, both the employee share and the government share, plus a 2% administrative fee on top. For many plans, that means your monthly cost will roughly triple or quadruple compared to what you were paying through payroll deductions. The one exception: if you were a Department of Defense employee separated due to a reduction in force, you continue paying only the normal employee share.
You must elect TCC within 60 days after losing coverage, or within 60 days of being notified of your eligibility, whichever comes later. Coverage is retroactive to the day after your 31-day free extension ends, so there’s no gap even if you take a few weeks to decide.
What Happens to Dependent Coverage
Your family members enrolled under your FEHB plan follow the same timeline you do. They get the 31-day free extension, and if you elect TCC, they stay covered under your enrollment for the full 18 months.
Family members who lose eligibility on their own, such as a child aging out of coverage or a spouse after a divorce, get a separate and longer option. They can enroll in TCC in their own right for up to 36 months from the date of the event that caused their loss of eligibility. However, if that event happens while you’re already on TCC as a former employee, their coverage can’t extend beyond 36 months from your original separation date.
Marketplace Plans as an Alternative
Losing your FEHB coverage qualifies as a life event that triggers a Special Enrollment Period on the Health Insurance Marketplace (HealthCare.gov). You have 60 days from the date you lose coverage to enroll in a Marketplace plan. You can also apply up to 60 days before your coverage ends if you know your separation date in advance.
For many former federal employees, a Marketplace plan ends up being cheaper than TCC, especially if your household income qualifies you for premium tax credits. It’s worth comparing costs before committing to TCC, since you can’t switch back and forth. If you’re under 26, you may also be able to join a parent’s plan during this window.
Dental, Vision, and Life Insurance
Your federal dental and vision benefits (FEDVIP) don’t follow the same rules as FEHB. FEDVIP coverage ends on the last day of the pay period after you separate. There is no 31-day grace period and no temporary continuation option. You’ll need to find replacement dental and vision coverage on your own, either through a Marketplace plan that includes these benefits or through a standalone policy.
Federal life insurance (FEGLI) does offer a conversion option. When your coverage terminates, your agency will give you a Notice of Conversion Privilege form. You have 31 days to send it in and convert some or all of your group life insurance to an individual policy. No medical exam is required. The individual policy can be any type the insurer customarily offers except term insurance or universal life. You choose from a list of companies approved by OPM.
Flexible Spending Accounts
If you have a Health Care Flexible Spending Account (HCFSA), it terminates on your separation date with no extensions. You can still submit claims for eligible expenses you incurred before that date, but anything after separation won’t be reimbursed, even if money remains in your account. One small consolation: if you spent more than was deducted from your paychecks before you left, you won’t owe the difference.
Dependent Care FSAs work differently. Your remaining balance stays available to cover eligible dependent care expenses through December 31 of that benefit year, or until the balance runs out. You won’t qualify for the grace period, though, since that requires active employment through the end of the year.
Retiring vs. Quitting: A Key Difference
If you’re leaving federal service and eligible for retirement, the rules change dramatically in your favor. Retirees who meet two conditions can keep FEHB for life, with the government continuing to pay its share of the premium. Those conditions are: you must retire on an immediate annuity (one that starts within a month of your separation), and you must have been continuously enrolled in FEHB for the five years of service immediately before retirement. If you had less than five years of service, you need to have been enrolled for all of it since your first opportunity.
Breaks in federal service don’t necessarily disqualify you. If you left government, came back, and maintained FEHB during both stints, those periods can be combined to meet the five-year requirement. But if you voluntarily canceled your FEHB while still employed and then re-enrolled later, the five-year clock restarts from the date you re-enrolled. If you’re close to retirement eligibility, this distinction between quitting and retiring could mean the difference between 18 months of self-paid coverage and decades of subsidized coverage.
Timeline at a Glance
- Days 1 through 31: Free extension of your existing FEHB coverage, automatic, no action needed.
- Days 32 through roughly 549 (18 months): TCC available if elected within 60 days. You pay full premium plus 2%.
- Within 60 days of losing coverage: Marketplace Special Enrollment Period opens for ACA plans.
- Within 31 days of separation: Deadline to convert FEGLI life insurance to an individual policy.
- Separation date: Health Care FSA terminates immediately. FEDVIP ends at the close of that pay period.