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Federal Employees Health Benefits Act (FEHBA)
Practical Law Glossary Item w-031-3377 (Approx. 3 pages)
Glossary
Federal Employees Health Benefits Act (FEHBA)
A federal statute that regulates federal governmental health plans, which are exempt from the Employee Retirement Income Security Act of 1974 (ERISA). Under the FEHBA, the Office of Personnel Management (OPM) is responsible for:
- Contracting with private insurers to provide and administer health plans under the Federal Employees Health Benefits (FEHB) Program.
- Developing and issuing implementing regulations.
- Evaluating the FEHB Program, and the plans offered under the program—and reporting its findings to Congress.
For example, the FEHB Program includes a federal flexible benefit plan (which is intended to qualify as a cafeteria plan under Section 125 of the Internal Revenue Code) through which eligible federal employees have a choice between cash or pre-tax coverage under a health plan, vision plan, dental plan, a health flexible spending arrangement (health FSA), or a dependent care FSA (26 U.S.C. § 125).
For more information on the FEHBA and the FEHB Program, see OPM's website.