Colorado's federal workforce
Colorado is home to major federal installations including the Denver Federal Center, Buckley Space Force Base, NOAA's Earth System Research Laboratories, the U.S. Geological Survey, the U.S. Mint, and national laboratories managed by contractors (NREL). Many Colorado federal employees and retirees need to understand how FEHB and Medicare work together.
Should federal retirees enroll in Medicare?
FEHB coverage continues into retirement — you don't lose it. However, most federal retirees benefit from enrolling in Medicare Part B because:
- Medicare becomes the primary payer, and FEHB becomes secondary — together, they cover nearly 100% of your costs
- Some FEHB plans reduce premiums or waive cost-sharing when you have Medicare
- You get the security of two layers of coverage
The trade-off: You'll pay the $202.90/month Part B premium in addition to your FEHB premium. But for most retirees, the reduced out-of-pocket costs and enhanced coverage more than offset this cost. A licensed agent can help you run the numbers for your specific FEHB plan.
Medicare Part A for federal employees
Federal employees hired after January 1, 1983 pay Medicare taxes and qualify for premium-free Part A. If you were hired before 1983 under the old CSRS system, you may not have enough Medicare-taxed quarters. Check with Social Security to verify your eligibility.
PSHB changes for postal workers (2025+)
Starting in 2025, postal workers and retirees transitioned from FEHB to the new Postal Service Health Benefits (PSHB) program. PSHB requires Medicare-eligible postal retirees to enroll in Medicare Part B. If you're a Colorado postal worker approaching retirement, this is a significant change — talk to both your benefits coordinator and a Medicare agent.
Key FEHB + Medicare resources
- OPM Healthcare & Insurance — Official FEHB information
- Colorado SHIP counseling: 1-888-696-7213
- Working Past 65 guide — If you're still working as a federal employee
- 2026 Medicare costs — Current premiums and deductibles