The Federal Employees Health Benefits Act (FEHBA) of 1959 made health insurance coverage, including coverage for physician services, available to almost all persons who were in Federal employment after 6/30/60, and to their spouses and to persons receiving an annuity as the surviving spouse of such a Federal employee. This 1959 FEHB Act should not be confused with the Retired Federal Employees Health Benefits Act (RFEHBA) enacted on 9/8/60. The RFEHB Act provided health insurance for those annuitants who could not then (in 1960) obtain FEHB coverage because their Federal employment ended before 7/60. Under a 1974 amendment to the FEHB Act (P.L. 93-246), annuitants who are enrolled for or eligible to enroll for coverage under the RFEHB Act may elect and be awarded FEHBA coverage effective no earlier than 7 /1/74.

Coverage under RFEHBA does not necessarily preclude HI entitlement. However, persons may in certain cases be precluded from deemed insured HI entitlement based on FEHBA eligibility or enrollment, as explained in B. below.

A claimant is precluded from becoming entitled to HI under the deemed insured provision if:

1. 1. 

   they had FEHB coverage on 2/16/65; or

2. 2. 

   they had FEHB coverage in the first month in which all the entitlement requirements of HI 00801.047, including the application requirement, were met; or

3. 3. 

   they could have had FEHB coverage in such first month if they (or spouse) had taken advantage of a right to enroll for and maintain FEHB coverage as a Federal employee after 2/15/65.

However, if FEHB coverage was, or would have had to be, terminated because Federal employment ended, the FEHB preclusion does not prevent a claimant from qualifying for HI for months after the month in which the employment ended.

Where a person's FEHB coverage begins later than HI, it does not terminate or preclude HI. Such a situation would rarely occur except where a retiree with RFEHB coverage, who has qualified for HI under the transitional “deemed insured” provision, converts RFEHB to FEHB coverage. As explained in A. above, the annuitant's FEHB can begin no earlier than 7/74; if HI began before the first month of FEHB coverage it will not be affected. Under B. above, FEHB coverage precludes HI entitlement only where it exists as of the first month in which all requirements of HI 00801.047 are met; FEHB coverage beginning after these requirements for HI are met does not preclude or terminate entitlement to HI under the deemed insured provision.

Example 1:

Individual was entitled to HI under the deemed insured provision beginning 4/68, the month attained age 65. HI will not be affected when converts RFEHB to FEHB coverage.

Example 2:

Individual first files for HI under the deemed insured provision on 12/15/ 74 at age 73. (person could have filed and been entitled to HI at any time since 1966.) Person retired before 7/60, has no QC's (and needs none for HI). Though previously enrolled under an RFEHB plan, applied for and was awarded FEHB coverage beginning 7/74. Since HI application is effective 12 months prior to the month of filing, i.e., 12/73, person may be entitled to HI effective 12/73. The fact that one had FEHB in 8/74 does not preclude entitlement to HI. However, if one first filed for HI in 8/75 or later and had FEHB coverage for the first month for which this HI application is effective (8/74), the FEHBA preclusion applies and the application must be disallowed.