Navigating health insurance after retirement can feel overwhelming—especially when you’re juggling both the Foreign Service Benefit Plan (FSBP) and Medicare. If you’re a retiree from the foreign affairs community, understanding how these two programs work together can help you make smarter decisions
What Is the Foreign Service Benefit Plan?
The Foreign Service Benefit Plan is a health insurance option under the Federal Employees Health Benefits (FEHB) Program. It’s tailored for active and retired U.S. government employees who have worked in foreign service roles—think diplomats, international development professionals, and others who have served abroad.
What makes FSBP stand out? It offers worldwide coverage, meaning it travels with you whether you're living overseas, relocating, or just taking extended trips. From hospital stays to preventive care and prescriptions, it’s a comprehensive plan designed for global lifestyles.
A Quick Refresher on Medicare
Once you hit age 65, you become eligible for Medicare, the federal health insurance program. It comes in parts:
Part A (Hospital Insurance) – Covers inpatient care and is usually free.
Part B (Medical Insurance) – Covers outpatient care like doctor visits. You pay a monthly premium for this.
Part D (Prescription Drug Coverage) – Optional, and often unnecessary if you have other drug coverage like FSBP.
How FSBP and Medicare Work Together
When you're enrolled in both FSBP and Medicare (especially Parts A & B), the two plans coordinate your coverage. Here’s how it typically works:
Medicare becomes your primary insurer and pays first.
FSBP becomes your secondary plan, covering any leftover costs Medicare doesn’t pay (like deductibles and copays).
This combination often results in very low or no out-of-pocket costs for most medical services. It’s a powerful duo that offers excellent value—especially if you’ve built your career serving abroad.