Keri, a former federal employee from Maryland, is facing significant financial strain after being fired, rehired, and fired again from her job at the Department of Commerce. The series of events led to her health insurance being canceled and backdated, leaving her responsible for medical bills incurred after her re-termination date. Keri had taken care to get a minor surgical procedure preapproved while on medical leave recovering from spinal surgery.
However, when she called Blue Cross, they informed her that due to her status change, she would be responsible for the costs incurred after her re-termination date. “We have kids, a mortgage, car payments. I don’t know how we’re going to manage,” Keri admitted.
The job search has also been tough, as many others are in the same predicament. Despite her challenges, Keri remains hopeful due to the support from elected officials advocating for fired federal workers. She also finds solace in seeing “We support federal workers” signs in her community, reminding her that people care.
Federal employees are increasingly anxious as threats loom over their health care plan costs, retirement contributions, and basic job security. Recent actions by the Trump administration have hit close to home for many. Concerns about future federal benefits persist.
One Defense Department employee expressed worry about the possibility of her contribution to the Federal Employee Retirement System (FERS) rising from 0.8% to 4.4% of her salary. This employee estimated the change would cost her an additional $17,000 before retirement. On a positive note, the Federal Employee Health Benefits Plans (FEHBP) program might see improvements.
The Office of Personnel Management (OPM) has asked plan providers to simplify online claims management, enhance provider directories, and improve dispute resolutions. However, there are financial concerns as the House and Senate consider limiting the government’s contribution to health care plans. With last year’s FEHBP premiums increasing by 13%, employees might face more out-of-pocket costs in the future.
Navigating bureaucracy and insurance challenges
Financial planner Thiago Glieger recommends building a financial cushion to cope with job uncertainty, poor market performance affecting Thrift Savings Plans, and other unexpected expenses. Managing personal finances prudently can help mitigate the stress caused by these unpredictable elements.
Danielle Waterfield, another federal employee, was fired, rehired, and fired again from her job at CHIPS for America, part of the Department of Commerce. She fears her health insurance was cut off weeks ago, even though she was told otherwise. Waterfield was already dealing with the shock and disappointment of being fired from a job she loved.
Instead, nearly two months after being fired in the Trump administration’s purge of newer federal employees, Waterfield is entangled in a bureaucratic mess over her health care coverage, fearing her entire family may now be uninsured. Solid benefits have long been seen as a perk of federal jobs, a tradeoff for lower pay. Many federal employees provide health insurance for their families.
However, the administration’s approach to remaking the federal bureaucracy has introduced unprecedented chaos. Fired employees desperate for information have received confusing, conflicting, and, at times, incorrect responses. Moreover, much of the information has come too late, leaving some fearful of accumulating medical bills that will not be reimbursed, while others avoid medical care until they secure new insurance.
Waterfield’s colleague, Keri Murphy, is even more terrified. She had surgery on her foot on April 17 and had confirmed her coverage that morning. Her paystubs showed she had paid her health care premium.
Now, she’s worried she may have to bear the cost of her foot surgery. Tammy Flanagan, a former FBI human resources worker who now runs her consultancy, says these federal workers have done precisely what she would advise — call their insurers. Beyond that, she’s not sure what to tell them.
“Where have government employees ever been fired and then rehired and fired again? It’s unknown territory,” she says.