Retiree Health Benefits
Are you an active employee with questions about retiree health? Contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911. Representatives are available Monday–Friday from 7 a.m. to 7 p.m., CT.
This page provides general information about health care benefits available to eligible employees when you retire from FedEx, including information about the FedEx retiree health benefits for eligible pre-65 and post-65 retirees.
For plan options and rates, view the current enrollment guide on the overview page for your operating company.
IMPORTANT: If you retire in 2023 and choose to enroll in COBRA instead of enrolling in the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (Plan), you will not be eligible for the Plan’s post-65 Health Reimbursement Arrangement (HRA) benefit in 2023 or the Retiree Health Premium Account (RHPA) in 2024.
The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan (the Ground Retiree Plan) will close and be replaced with the FedEx Corporation Retiree Health Reimbursement Arrangement on January 1, 2024. With the implementation of one FedEx, eligible FedEx Ground employees and their legally married spouses retiring on or after January 1, 2024, will receive a one-time, lump-sum Retiree Health Premium Account (RHPA) credit based upon age at retirement to cover eligible retiree healthcare premiums. Eligible FedEx Ground retirees will have the option to enroll in health insurance obtained through other sources, like a health insurance exchange, an insurance company, or an insurance broker and use RHPA funds for reimbursement of eligible premiums. FedEx retirees will also have the option to use GetCovered powered by HealthMarkets at 1-866-925-0120 or www.getcovered.com/uhc to find affordable pre-65 medical, dental or vision coverage and post-65 supplemental Medicare plans. A complete list of eligible RHPA expenses, the RHPA chart, and more information about the RHPA can be found below.
Effective January 1, 2024, your (and, if applicable, your Spouse’s) FedEx Ground Post-65 HRA is being replaced with the FedEx Corporation RHPA. Your (and, if applicable, your Spouse’s) FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan’s Post-65 Health Reimbursement Arrangement (FXG HRA) benefit of $180 dollars per month ($2,160 annually) will be replaced with a one-time, lump-sum Retiree Health Premium Account (RHPA) under the FedEx Corporation Retiree Health Reimbursement Arrangement. Your (and, if applicable, your Spouse’s) new RHPA will be available beginning January 1, 2024.
You may continue to use the balance of your FXG HRA through December 31, 2023. The deadline to submit claims for reimbursement from the FXG HRA is December 31, 2024. Any balance you have in the FXG HRA will not carry over to your new RHPA.
If you are currently enrolled in the Pre-65 FedEx Retiree Health Plan, your access to the Medical Health Reimbursement Account (HRA) associated with the FedEx retiree medical plan options also will end at midnight on December 31, 2023. If you have funds in your Medical HRA, you must use them before midnight on December 31, 2023, or the funds will be forfeited. You have until December 31, 2024, to submit claims for the 2023 plan year. If you have questions about your Medical HRA or need assistance, contact Optum Financial at 1.833.298.9044 or log on to myoptumfinancial.com/fedex.
More information about the RHPA
FedEx provides a one-time, lump-sum retiree health credit in a Retiree Health Premium Account (RHPA credit*) to help eligible retiree health plan participants reimburse eligible health care premiums (including Medicare supplement premiums, if age 65 or older). You can use the account until it is depleted. If you have an eligible, qualified Spouse, your Spouse will receive a separate RHPA credit.
Summary of RHPA’s key features
- It’s a one-time, lump-sum credit.
- It does not earn interest.
- It is not taxable if applied to eligible expenses.
- It cannot be taken as a lump sum or used for anything other than eligible expenses.
- Accessing the RHPA might impact eligibility for government subsidies, like the federal premium tax credit.
- Retirees can irrevocably suspend RHPA access for a calendar year, which may allow eligibility for subsidies like the federal premium tax credit.
- Consult a tax professional or contact the FedEx RHSC for information about irrevocably suspending RHPA access for a calendar year.
You can determine the amount of your RHPA by referring to the RHPA chart below. The amount you’ll receive depends on your age as of January 1, 2024. If you have an eligible Spouse, they will receive their own RHPA based on their age as of January 1, 2024. Dependent children will not receive their own RHPA, but your or your Spouse’s RHPA can be used to cover their eligible health care premiums.
| Age at Retirement | One-Time Credit Amount Per Covered Individual |
|---|---|
| 55* or younger | $39,000 |
| 56 | $37,000 |
| 57 | $35,000 |
| 58 | $33,000 |
| 59 | $30,000 |
| 60 | $27,000 |
| 61 | $25,000 |
| 62 | $22,000 |
| 63 | $20,000 |
| 64 | $18,000 |
| 65 or older | $11,000 |
Note: Retiree is one “individual,” and retiree’s spouse is a separate individual. If you’re married to an eligible Spouse, you will both get an RHPA, independent of each other.
*Not applicable to retirees. Only the retiree’s spouse may be younger than Age 55.
If you have questions, contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911, Monday-Friday from 7 a.m.-7 p.m., Central time.
If this is a new term for you, an “exchange” is simply an online resource where insurance providers advertise and sell their services. There is no uniform model. Some are run by companies and others are run by a state government or the federal government. In some markets, competition among plan providers works in your favor, and there’s a potential for better value and lower rates. This gives you the option to research various coverage options and possibly select different coverage, based on your needs.
Exchange Examples and Options:
- Insurance exchange
- Insurance broker
- Insurance company
- Federal Marketplace
- State-based Marketplace
Public exchanges are accessible to all employees, regardless of eligibility for FedEx retiree health benefits. You can shop for coverage through a public exchange administered by your state or the Federal Health Insurance Marketplace, where you might qualify for the annual federal premium tax subsidy.
If you choose this option, you can’t use both the FedEx Retiree Health Premium Account (RHPA) and the federal premium tax subsidy in the same year. You must choose one or the other. If you choose to use the federal premium tax subsidy, you will still have access to your RHPA the year after you stop using your federal premium tax subsidy.
To see if a public exchange is available in your state, go to healthcare.gov. Open enrollment for 2024 coverage in Federal Health Insurance Marketplace options begins November 1, 2023 and enrollment must be complete by December 15, 2023 to ensure coverage on January 1, 2024.
Learn more about the Federal Health Insurance Marketplace or the federal premium tax subsidy at healthcare.gov.
You can purchase health care coverage from an insurance broker or insurance company. The private exchange through Alight Retiree Health Solutions (ARHS) and its partner eHealth offers post-65 retirees access to additional health care coverage options. As an eligible post-65 retiree, you may find supplemental Medicare medical, prescription drug (pharmacy), dental and vision coverage that’s right for you.
You can also contact GetCovered powered by HealthMarkets for pre-65 medical, dental, and vision coverage and post-65 supplemental Medicare plans at 1.866.925.0120 or by visiting www.getcovered.com/uhc.
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Q. What is one FedEx?
A. One FedEx is an effort to consolidate FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation to streamline corporate structure, to unify people, and reduce redundancies in processes and policies.
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Q. Why am I no longer able to enroll in FedEx Retiree Health insurance?
A. The FedEx Corporation Retiree Group Health Plan and FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan will close effective January 1, 2024. Year-over-year participant enrollment decline in these Plans has indicated more FedEx retirees are choosing to find health care coverage elsewhere.
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Q. Where can I find health insurance?
A. You can find health insurance through a health insurance exchange, such as healthcare.gov, an insurance company, or an insurance broker. For help finding pre-65 medical, dental and vision coverage and post-65 Medicare supplemental plans, you can also contact GetCovered powered by HealthMarkets at 1-866-925-0120 or www.getcovered.com/uhc.
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Q. Will I be able to find health insurance if I have a pre-existing condition?
A. Health insurers generally are prohibited from charging or denying coverage to you or your dependents for pre-existing conditions.
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Q. What will happen to my medical HRA?
A. You cannot submit claims for expenses incurred after December 31, 2023, to a Medical Health Reimbursement Account (HRA) associated with your FedEx retiree medical plan option coverage. For eligible expenses incurred on or prior to December 31, 2023, you have one year from the date the expense was incurred to submit the claim. If you have questions about your Medical HRA or need assistance, contact Optum Financial at 1.833.298.9044 or log on to myoptumfinancial.com/fedex.
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Q. I am currently on the FedEx retiree group health plan through COBRA. What will happen to my insurance?
A. Your FedEx COBRA coverage will end with Cigna December 31, 2023, and transfer to United Healthcare January 1, 2024, where you will be covered until you decide to drop, or your COBRA continuation period is exhausted.
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Q. What is the RHPA?
A. The RHPA is a one-time, lump-sum credit into a notional account based upon your age as of January 1, 2024.
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Q. Can I use my RHPA if I am receiving or plan to receive the federal premium tax credit for my purchase of a health plan on the federal or a state health insurance marketplace?
A. You generally are not eligible for the federal premium tax credit when you have access to the RHPA. Retirees can irrevocably suspend RHPA access for a calendar year, which may allow eligibility for subsidies like the federal premium tax credit. Consider consulting a tax professional. To irrevocably suspend RHPA access for a calendar year, contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911, available Monday-Friday from 7 a.m. to 7 p.m., CT.
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Q. What expenses can the RHPA be used for?
A. The RHPA credit can be used to reimburse for only healthcare premiums and contributions — such as medical (including Medicare and Medicare supplement premiums), prescription drug, vision, and dental plans — up to the amount in the account. It can also be used to reimburse yourself for healthcare premiums and contributions for after-tax plans obtained through a health insurance exchange, an insurance company, or an insurance broker and other eligible insurance plans. If there are any credits remaining in the RHPA once you begin receiving Medicare, you can continue to use the RHPA to reimburse eligible Medicare premiums, premiums for Medicare supplements, and premiums for other eligible coverage. Because it's a tax-free account, you don't pay taxes on your balance or reimbursements. For more on RHPA eligible expenses, visit retirement.fedex.com.
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Q. Can I use my RHPA to pay other premiums besides medical and prescription drug coverage, like dental and vision coverage?
A. Yes, you can use the RHPA to pay for premiums for medical, dental, vision (on an after-tax basis) and prescription drugs (pharmacy).
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Q. Can I use my RHPA to pay for other health care expenses besides health care premiums?
A. No, the RHPA is intended to cover some or all of your health care premiums and contributions. It cannot be used for other expenses, even those related to health care. You can view the list of eligible expenses on the Retiree Health Overview page at retirement.fedex.com.
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Q. How can I check my RHPA balance?
A. You can view your RHPA balance and transactions and manage your reimbursement requests through your My Choice Account. Log on to retirement.fedex.com/enrollnow.
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Q. How can I learn more about the RHPA?
A. Eligible participants will receive a welcome letter that explains the RHPA and provides helpful account information, including a list of eligible expenses. Once the account is activated at retirement.fedex.com/enrollnow, participants can locate RHPA materials in the document center. If you have questions about FedEx Retiree Health benefits, please contact the Retiree Health Service Center at 1-888-715-1911.
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Q. What happens once my initial RHPA funds are exhausted?
A. RHPA funds are a one-time allocation. Once the funds in the credit have been exhausted, no additional funds are allocated.
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Q. When will my RHPA expire?
A. RHPA funds are a one-time allocation. Once the funds have been exhausted, no additional funds are allocated.
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Q. Is the RHPA taxable?
A. The RHPA is not intended to be subject to income tax. You generally are not subject to taxes on your balance or reimbursements of eligible expenses if you participate in the plan subject to its terms.
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Q. What happens to the balance of my RHPA when I die?
A. If you have an eligible spouse who survives you, they will become the account holder of the balance of your RHPA. If you don’t have an eligible spouse, the remaining balance will be forfeited and won’t be paid out as part of your estate.
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Q. Can money be transferred between a retiree account and a spouse account?
A. No, money cannot be transferred between RHPA accounts, but you may submit claims for the retiree and spouse from either account.
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Q. Where do I go on the website to submit a claim?
A. Log on to retirement.fedex.com/enrollnow. On your home page, click the "MyChoice Accounts" button. You can also select "MyChoice Accounts" from the drop-down menu next to your name in the upper right corner of the home page.
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Q. Who can I call with questions about my RHPA?
A. If you have questions or need assistance, contact the FedEx Retiree Health Service Center (RHSC) at 1.888.715.1911. Representatives are available Monday-Friday from 7 a.m. to 7 p.m., CT.
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Q. What if I want help outside of the FedEx Retiree Health Service Center hours?
A. You can use your virtual assistant Sofia, who is available 24/7/365 and will engage with you while you are in the system. She is part of the team as the Chat Assistant. Access Sofia in the MyChoice Mobile App or in the bottom right corner of retirement.fedex.com/enrollnow.
The FedEx Corporation Retiree Group Health Plan and FedEx Corporation Retiree Health Reimbursement Arrangement (Plans) are governed by formal Plan documents and, in the event of any conflict between this communication and the Plan documents, the formal Plan documents will control. This communication does not alter any terms of the Plans or related agreements. FedEx reserves the right to amend or terminate any of its employee benefit plans, in whole or in part, at any time and for any reason.
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Q. Why am I no longer able to enroll in FedEx retiree health insurance for 2024 and beyond?
A. The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan has seen year-over-year declines in participant enrollment, indicating that more FedEx retirees are choosing to find health care coverage elsewhere. To support the changing health care landscape, the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan will close effective January 1, 2024.
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Q. Why is my benefit changing to the RHPA?
A. Earlier this year, we introduced one FedEx — an effort to consolidate FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation. To support the implementation of one FedEx, the FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan will close effective January 1, 2024, and be replaced with the FedEx Corporation Retiree Health Reimbursement Arrangement, making retiree health benefits the same across operating companies offering retiree health benefits.
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Q. What will happen to my $2,160 FedEx Ground Post-65 HRA?
If you or your spouse are currently receiving a FedEx Ground HRA benefit of $180 dollars per month ($2,160 annually), it will be replaced with a one-time, lump-sum $11,000 Retiree Health Premium Account (RHPA) January 1, 2024.
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Q. How much will I receive in my RHPA?
A. The amount of your RHPA depends upon your age on January 1, 2024. View the RHPA chart below.
Age at Retirement One-Time Credit Amount Per Covered Individual 55* or younger $39,000 56 $37,000 57 $35,000 58 $33,000 59 $30,000 60 $27,000 61 $25,000 62 $22,000 63 $20,000 64 $18,000 65 or older $11,000 Note: Retiree is one “individual,” and retiree’s spouse is a separate individual. If you’re married to an eligible Spouse, you will both get an RHPA, independent of each other.
*Not applicable to retirees. Only the retiree’s spouse may be younger than Age 55.
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Q. Will my spouse receive the RHPA?
A. Legally married spouses will receive an RHPA based upon their age January 1, 2024.
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Q. When will I receive the RHPA one-time credit?
A. Your (and, if applicable, your Spouse’s) new RHPA will be available beginning January 1, 2024.
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Q. Will Ground retirees have a deadline for FedEx Ground Post-65 HRA reimbursements?
A. Yes. You may continue to use the balance of your FedEx Ground Post-65 HRA through December 31, 2023, and submit any 2023 claims for HRA reimbursement through December 31, 2024. The deadline to submit your 2023 claims for reimbursement from the FedEx Ground Post-65 HRA is one (1) year after the date the expense was incurred and in no event later than December 31, 2024. Any balance you have in the FedEx Ground Post-65 HRA December 31, 2024, will not carry over to your new RHPA. For Ground Pre-65 employees participating in a medical plan option with an integrated medical HRA, see “What will happen to my medical HRA?” above for information about your medical HRA.
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Q. Will the RHPA be added to my FedEx Ground Post-65 HRA?
A. No, you will receive your RHPA based on your age January 1, 2024. If you are age 65 during the plan change, you will receive an RHPA for $11,000.
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Q. Will Ground spousal accounts be established (dollar value) based upon spouses age on January 1, 2024?
A. The amount you’ll receive depends on your age as of January 1, 2024. If you have a legally married spouse, they will receive their own RHPA based on their age as of January 1, 2024.
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Q. Will my dependent children receive an RHPA?
A. Dependent children will not receive their own RHPA, but your or your Spouse’s RHPA can be used to cover your dependent children’s eligible health care premiums.
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Q. I previously retired and I waived coverage (did not enroll in a FedEx Ground retiree medical, dental or vision plan). Am I eligible for the RHPA?
A. No. If you waived coverage during your initial enrollment period (meaning you did not enroll within 31 days of your retirement date), you are NOT eligible for the RHPA.
The FedEx Ground Package System, Inc. Retiree Medical, Dental and Vision Care Plan and FedEx Corporation Retiree Health Reimbursement Arrangement (Plans) are governed by formal Plan documents and, in the event of any conflict between this communication and the Plan documents, the formal Plan documents will control. This communication does not alter any terms of the Plans or related agreements. FedEx reserves the right to amend or terminate any of its employee benefit plans, in whole or in part, at any time and for any reason.
Retiree Health Premium Account (RHPA)
Eligible Expenses for Reimbursement
| Expense | Covered? | More Details |
|---|---|---|
| Active FedEx COBRA premiums - Premiums for continuation of group medical, dental, or vision coverage under the FedEx Corporation Group Health Plan (for active employees) | NO |
Premiums for COBRA continuation coverage under the FedEx Corporation Group Health Plan (for active employees) is not reimbursable from the RHPA (i.e., employee retires and extends active coverage through COBRA for 18 months or less). |
| Retiree FedEx COBRA premiums - Premiums for continuation of retiree group medical, dental, or vision coverage under the FedEx Corporation Retiree Group Health Plan | YES |
Premiums for COBRA continuation coverage under the FedEx Corporation Retiree Group Health Plan is reimbursable from the RHPA (e.g., upon the occurrence of a qualifying event, such as divorce, resulting in the spouse losing eligibility for the FedEx Retiree Health Plan; the spouse can choose to extend FedEx Retiree Health Plan coverage under COBRA). |
| Non-FedEx COBRA premiums – Premiums for continuation of coverage under a plan offered by someone other than FedEx, such as the non-FedEx employer of a spouse. | YES |
Premiums for COBRA continuation coverage under a group health plan sponsored by an employer other than FedEx, such as a plan sponsored by the non-FedEx employer of a spouse, is reimbursable from the RHPA. |
| IRMAA and late enrollment penalties | YES |
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| Long-term care premiums - Premiums paid on a policy for future long-term care needs | NO |
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| Medicare Part B Premiums | YES |
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| Medicare Part D Premiums | YES |
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| Premiums for dental insurance - Premiums paid on an after-tax basis for any type of dental insurance coverage, including premiums for private insurance not provided by an employer | YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the dental premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for medical insurance - Premiums paid on an after-tax basis for any type of medical insurance coverage, including premiums for private insurance not provided by an employer and Medicare Part A, C, F, G, K, L, M and N | YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the medical premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for vision insurance - Premiums paid on an after-tax basis for any type of vision insurance coverage, including premiums for private insurance not provided by an employer | YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the vision premium expense. Handwritten or verbal confirmation won't be accepted. |
| Premiums for prescription drug insurance - Premiums paid on an after-tax basis for any type of prescription drug coverage, including premiums for private insurance not provided by an employer | YES |
You must provide proof that the premium is after-tax when a payroll or retirement statement is used to document the prescription premium expense. Handwritten or verbal confirmation won't be accepted. |
Legal Disclaimer: Each benefit described here is based on a formal plan document or contract. While this information is intended to be accurate, the benefits discussed here are subject to the detailed provisions of the applicable plan documents. This web page is not a summary plan description or part of a summary plan description. The details of the benefits can be found in the applicable plan documents and/or the applicable summary plan description. If there is a conflict between this communication and the terms of the applicable plan document, the terms of the plan document will control. FedEx reserves the right to amend or terminate any benefit plan at any time and for any reason.