Outstanding video with excellent information! Thank you, sir! You mentioned a term late in the video that all federal employees and retirees need to remember: suspend. When and IF the time comes, SUSPEND your FEHB.....DO NOT GET RID OF IT ALTOGETHER! Suspending your FEHB allows you (or your spouse if you pass away) to get that health care insurance benefit back again if you choose. Very important.
As a postal retiree, the new PSHB give you a choice to volunteer to sign up for part B, if your already retired. If you go that route then you WILL have both the part B premium and the premium for your plan under the PSHB. Deciding to pay for 2 insurance premiums will give you almost 100% coverage where the PSHB plan will cover deductible, co pays & etc. But the additional cost needs to be figured if you want any large medical events that will result in more $ than the additional premium. Since we can't predict the future of our health, each person will need to decide if the extra premium is worth it, or take their chances & get stuck paying those deductible, co pays & etc. Lots to consider, a " catch 62".
I am also a Postal retiree and have listened to my insurers podcast on the subject. It is great coverage for them. Being secondary payer their cost is practically eliminated but there is no reduction in premium costs, making it a real money maker for them. What they don't really talk about is the drug coverage. One chemo treatment and you can hit your catastrophic out of pocket. Having Part B would be of no benefit in this scenario, just more out of pocket having to pay Part B premiums. Will I ever need chemo? Hopefully not. I remain conflicted- take Part B or not.
@kathleenharsha6504 Yes, it's a " sticky" situation. Drugs are handled just like they are now, you have a copay. Yep, you pay all that premium & drug cost is Not any lower with part B- go figure! WAY too much $ & the insurance company makes out like bandits. Only on things medicare doesn't pay will the PSHB pay,plus co-pays, deductibles & etc that medicare doesn't cover. My game plan is get part B, then during open season sign up for a medicare advantage plan with no monthly premium & SUSPEND the PSHB. You would still have co-pays, but of your not too sickly those are FAR cheaper than a high premium from PSHB is surely going to charge. I would use that $ to pay as I go for co-pays, deductible & etc. Surely it will be less than a set monthly premium. This is just for my 1st year. Will see how it goes. Then can always change back to PSHB & drop the medicare advantage plan next time around. That's if you find your needing more care/surgeries and etc. I refuse to pay double premiums at the start until I see how this works out. Getting part B penality free is a good thing I believe. Who knows, down the line the PO may decide not to offer health insurance to retirees and only to working employees. Another stab in the back & if you didn't get part B, you are left with NO insurance at all. In the marketplace it would be unaffordable for me. So, all premiums will go up & we will just have to adjust. At least I would have part B and could get a medicare advantage plan every year. Without part B, you can't do that. Do the research on what medicare advantage plans will be available to you. Try for a 0$ monthly rate, then you will only pay the part B premium. The PO really threw all of us under the bus here, so no answer is perfect & everyone needs are different. For now that's my plan. Hope this helps !
I’ve been retired for 4 years & have Medicare Part A & FEHB. FEHB pays for drug coverage & pays for most medical expenses. Plus if you travel or live overseas Medicare won’t pay, but FEHB will pay. I am happy with my decision.
Blue cross blue shied is very picky in overseas even though they say they cover in overseas, they usually don't. I switched to foreign service benefit plan but more expensive than Blue. Thinking about switching back to Blue because of the plan cost but not sure.
@@ConnieBach I have travelled overseas & used medical facilities & Blue Cross has paid, & I know about other retired federal employees who live overseas with no problems.
This is an upcoming stressful decision for myself as well. Have been researching it for more than a year. On the one hand FEHB coverage is good, but premiums are high. Doing “Medicare part B + a quality supplemental plan G + annually shopping the best overall part D plan” instead of “FEHB + Medicare B” appears to have a lower overall premium with about the same out-of-pocket, and lower drug cost. But if one walks away from FEHB, they can never get it back. From my research, it looks like the FEHB plans are more expensive than doing a combination Plan G supplement and part D plan. What am I missing?
Only problem with your theory, the Po (opm) will not allow you to get a supplement, only a medicare advantage plan. If you insist on a supplement, you Must cancel your fehb/ pshb & you will not get the penalty waived to sign up for part B. You will pay the full amount plus any penalty you may incurred for the rest of your life. Yes supplement &drug plans ARE definitely cheaper, but they won't let you do it that way. So be very careful what & how you choose
That’s what I wonder. Everyone talks about how wonderful FEHB retirement insurance is but several of the major insurance plans offered don’t coordinate with part B drugs and at least the BCBS doesn’t fully coordinate with skilled nursing either. The drug formulary appears to be better than most part D plans though.
@CouchFamilyUSA You also cannot get a supplement plan + drugs plan and keep your fehb. FEHB only let's you SUSPEND their plan to join a medicare advantage plan. So you SUSPEND fehb & join a medicare advantage plan in your area that has a 0 monthly premium. These will only be offered OUTSIDE of ANY plan the PSHB will offer. Then you just have part B premium to pay & 0 premium for the advantage plan you select. Just SUSPEND your fehb so you CAN get it back in the future if you need to.
Your missing that two FEHB plans/ Blue cross basic & Aetna give you money back every year to supplement you Medicare payments I think it’s $900 a person Once you leave the FEHB plans your done
Thank you for these very detailed explanations. My late husband had FEHB and Medicare part A. He had many health issues and never needed to pick up part B. Now that I'm getting closer to 65, I think I will do the same.
This is EXACTLY my situation! I'm a retired federal employee (about to turn 70) and I have Medicare Part A. I've had only one hospital surgery since retirement (plus colonoscopies every 3 years), and so far out-of-pocket expenses haven't affected me financially. With $1m in liquid assets, a mortgage-free home, no one to leave any of my assets to except a charity, a decent pension and annuity income, $4600 gross in SS benefits kicking in in 9 months, $2-$3k monthly expenses, and a part time job, Plan B doesn't seem to make sense for me.
Thanks for sharing! I was thinking I do not need medicare B, just A and my FEHB insurance. But was not sure if I would regret it for not signing up for B. After hearing your story, I will get A only.
But if you don't pick up part B, then isn't your FEHB plan limited by law to pay no more than what Part B would pay? 80%? That 20% gap might be really expensive for a big medical event.
I am a Civil Service Annuitant (CSRS) with Basic BC/BS plus Medicare Parts 1 & 2 as does my husband. Neither of us have had to pay any healthcare cost since retirement. There has been a solid organ transplant, cataract surgeries, eye shots that cost over $1,000 having twice a month, broken ankles, etc., etc. We also receive $800 cash back each year to each of us from our BC/BS Basic. We each have our own policy…no longer need the more expensive family plan. We couldn’t be more pleased with our coverage! Without our federal plan, we are able to travel the world without taking out additional travel health insurance. We’re fully covered.
I'm glad I'm not a retired federal employee. This sounds very complicated - more than regular Medicare is. I did work for the Social Security Administration from 1982 - 1985. I got out of there pretty quickly.
@@Theretirementnerds Ugh -- typical. When my mom passed away in 2013, the funeral home required us to supply her SSN and my deceased father's SSN (since she was receiving widows SS benefits under his SSN). They said that they are required by the government to report the deaths of people receiving SS benefits. We did have to notify every other entity -- her Medicare supplement co, her pension company, etc.
@tomm7505 I've heard this now from multiple people. The Mortuary people we worked with didn't do this for us, so super confused on how that works. They gave us a paper and phone number to contact SS and I took that on instead of my siblings. Would've loved to have them do it for us.
Be ASSURED, that the changes made ONLY to Postal retirees will result in most of them getting shafted. I worked for them for over 35 yrs, and have never seen them do anything to help their employees.
I want to share this info: I just called SSA today 11/2024, you need 2 forms to enroll on Part B. 1) CMS 40B and 2) CMS L564 this form needs OPM to fill out the bottom. Mail to them with a cover letter to return it to you. Once you hand in L564 to SSA, there is no late enrollment penalty. 🎉🎉🎉🎉 My hubby wants to PAUSE FEBH, and enroll in Part B, supplement and D. No more networks. TG!
That is an excellent explanation of a complex topic. My sister-in-law became permanently disabled in 1996. She is covered by her late husband's FEHB plan and Medicare Part A. Since she turned 65 in November, her Social Security Benefit was reduced to cover Medicare Part B, but she does not remember enrolling in Part B and would like to terminate Part B and keep FEHB plus Medicare Part A. What are the implications of dropping Medicare Part B, and how can she implement her plan to un-enroll in Part B?
GEHA (a FEHB plan) has a Medicare Advantage plan that will reimburse you for your Medicare Premium up to $180/month. It costs about the same as basic GEHA.
My parents are enrolled in a FEHB plan plus Medicare parts A and B. They also enrolled in an additional medicare advantage plan specifically offered only for annuitants that have parts A and B and the high option health plan through NALC. They did this because they get unlimited therapy visits and lower prescription costs and a reimbursement of 75 per month each plus dental and vision coverage and other perks. Their premium is 480.54 per month plus the part B premiums. Yes, it adds up to a lot, but they never pay anything for medical needs except prescription drug copays.
@teeduck Yes, they pay a lot in premiums, but since both my parents receive multiple therapy visits each week, whatever they would save on premiums by getting a cheaper NALC plan or a regular Medicare advantage plan would be more than offset by their medical expenses on those plans. Even a $25 copay 3 times a week adds up!
@jannjackson8461 Well, I have to make an update since I made this post. The group NALC sponsored advantage plan was great until it wasn't. My mom had an accident in June and broke her femur bone. After emergency surgery and being admitted into a skilled nursing facility, the advantage plan refused to pay for her skilled rehab stay after 6 weeks, even though her treating doctors said she still needed skilled care. I switched both my parents back to Original Medicare with secondary NALC high option plan because I refuse to have a private, for-profit insurance company make the medical decisions based on benefitting their bottom line rather than medical necessity. I was naive and thought a group employer sponsored advantage plan wouldn't operate like the individual medicare advantage plans, but I learned my lesson the hard way. A for-profit insurance company only has their interests in mind, which isn't getting you the medical care you need and deserve.
I have the same FEHB as your parents. I was curious as to what the 75.00 reimbursement is for. I opted out of the Advantage Plan and opted out of the Silverscripts. Thanks!
Is it possible to delay taking Part A (and B) without penalty? I am a federal CSRS retiree/annuitant turning 65 next month (Feb 2025), my wife is 62. We have FEHB Blue Cross Basic self +1 that has been very good for us. With the upcoming 65th birthday, I'm inclined to take Medicare Part A only, keeping Blue Cross as primary for both me and my wife, at least until she turns 65 when we can consider dropping the Blue Cross for Part B, but I know that comes with a large (30% for 3 year delay) later Part B penalty. It's not in my budget to pay the additional Part B premium now (along with our Blue Cross), so I'm facing a dilemma. Ideally I'd like to delay medicare completely, maintaining status quo until she turns 65 and becomes medicare eligible, considering dropping BCBS for Part B at that time. Is it possible to do so, and without the delay penalty?
One correction on PSHB. They do not require you to take Med B, however employees after 2024 will be required. Prior annuitants have the option to take Part B wo penalty if they did not sign up previously. USPS is picking up the penalty by 9/30/24 and you have till 12/31/24 to cancel if you change your mind. Unfortunately IMO another cart before the horse Quasi Govt rollout. Fewer choices and on first release looks like higher premiums compared to FEHB. They couldn’t leave well enough alone. Do you have numbers if FEDS do or do not usually take Part B.
The PSHB changes are part of the deal to try to save the postal service which has been drowning in debt. Not surprising about the cost difference considering it’s a smaller risk group and one that’s more likely to have medical costs due to the physical work involved in the mission of the postal service.
Perhaps this has already been mentioned but I believe you missed one other important category. That is to not have any Medicare a or B, but to continue with an FEHB plan particularly an HDHP plan with an HSA. This could be a useful option for healthy couples as they reach 65 and beyond. It must be noted that once eligible for full retirement Social Security you are required to take part a. So this would disqualify the HDHP from having an HSA. One could continue with an HRA at that point though the benefits are unlikely to outweigh the cost. The decision at that point is which FEHB plan to take in order to have adequate coverage now that you only have part a. A small minority can find this beneficial if they have a high IRMAA premium as they can still pick up Medicare part B to add to an FEHB plan. Though subject to the penalty someone in a high IRMAA bracket will have saved many years of full IRMAA premiums. certainly more of a corner case but One worth considering with adequate analysis and planning.
Taking Part D inlu of giving up FEHB drug coverage is probamatic to me what do you gain by taking the part d option fehb offers! I know my parents are stuck buying drugs on amazon I don't want that.
1) My husband has FEBH, whenever there is a problem I use a RX coupon. Ex. When he needs RX before refill date. The coupon price is very similar to insurance RX cost. Walgreens has RX coupons on their site. 2) Costco pharmacy has excellent prices. 3) Mark Rubin’ drug site. Hope this helps.
@sct4040 Good RX has a great site that compares prices at locations and has free card. prices vary a lot where you go. Doesn't work all that great for expensive drugs.
A question I can not seem to find the answer to: My situation is retired postal worker at age 62 and non-federal spouse is 67 on Medicare A/B What would be the best approach for a hybrid coverage cost wise? From what I have researched you can not suspend FEHB/PSHB for non federal spouse to sign up for Medicare C Plan , Could I opt for Self Only and spouse opt a Medicare C Plan and return to PSHB plan next open season Self plus One, the risk I see is if upon death under self only the spouse would loose PSHB before you could change back to Self plus One. Does this make sense or should you just have a BCBS Basic Self plus one and spouse keep Medicare A/B, or with the new PSHB Medicare Adv plans one be on self BCBS and spouse on PSHB Medicare ADV self only ?
I think you made a major error at the 4:15 point in the video which you later repeated 10:50 point. If an indiviual is enrolled in the FEHB he/she is enrolled in one of the insurance plans offered by a major insurance company. These companies include BCBS, UHC, Aetna etc. The plans are PPOs and HMOs and they all have networks. You make the statement that if an indivual with an FEHB plan enolls in A and B they have access to any provider that participates in Medicare. This is inaccurate. The networks (and the restrictions) do not change.
Hi Keith, thank you for watching and pointing this out. First, there are some semantics involved here. Second, we could've been more clear in the video, for sure, so for that I apologize. On the semantics side, even with an HMO or PPO FEHB plan, the annuitant still has access to any provider or facility that participates with Medicare with their Part B coverage. Whether or not what Medicare does not cover is paid for by the FEHB plan absolutely depends on what you mentioned - which FEHB plan does the individual have. If someone were to have just the FEHB HMO plan as an example, and no Part B, and that individual visits an out of network provider - they would be liable for the full bill. If that same person had Medicare Part B as well, they would at least have the Medicare coverage of 80%. Hopefully that helps. Totally understand what you're saying and agree that we could've said that better. Thank you!
Good information, but overlook one important issue for federal annuitants approaching 65. Spouse coverage, I'm getting ready to turn 65 my wife who is younger than me gets her insurance through my FEHB, dropping or suspending FEHB is not an option at least until she hits 65.
My spouse has Medicare Part B through a disability retirement and I do not. We have FEHB through the Postal Service and I rarely go to the doctor. My wife however, has chronic conditions. Will she continue to receive Part B and then I wouldn't choose Part B if I just choose FEHB. I am 65 and she is 62 Thank you also you have a great channel.
Thank you so much! From what I understand, if you have postal benefits, they'll be having you take Part B. May need more info on your specific situation if you want to send me an email to erik@theretirementnerds.com
My wife and I are 47. She is a federal employee. When the times comes i want her to enroll in MA only and get Part D from FEHB. How does that sound? Great video. Thanks
Definitely an option. She will need to be enrolled in Medicare Part A and B to get an MA-only plan, so you'll have that Part B premium to consider, but that is definitely a route you can consider.
Advantage plans will have changed dramatically by the time you retire, so you probably want to revisit your decision. Currently, Medicare Advantage can be difficult for people with any type of chronic or critical illness because Medicare Advantage requires preauthorizations on procedures & medications. This means you have to wait until the insurance company approves these things which can take weeks or months. Also, Medicare regulations change every year so you really need to be on top of things when you're about to become Medicare eligible.
@@Roslyn111there are no drug plans that don’t have prior authorizations whether part D or employee retirement plans. Or for that matter active employee plans.
Is their a possibilty that you can assist in giving me further info regarding my current BCBS plan with medicare A/B to change to another FEHB plan with a lower premium.?
FEP Blue Cross is trying to get enrollees to change their drug plan to their Medicare drug plan. I did the math for my husbands situation and it didn’t make sense for us so I opted out. Have you heard about this and what are your thoughts.
I have not :( Since agents really don't have any ability to see or help with the FEHB plans, we're not the most familiar with those workings. OPM is the place to see those. If you have the FEHB plan coverage we could compare it with what's available on the market outside FEHB. 2025 is shaping up to be expensive though :(
As a Federal retiree I was sent a letter in 12/2023 referencing the change of Blue Cross and saying I would have Medicare Prescription Drug Program effective January 1, 2024. Dummie me didn't take this seriously until in June 0f 2024 when I ordered my mail order refill on pain patches (Diclofenac).... never received them.. so in August started inquiring...did still have the letter from BC/BS dated December 4, 2023, explaining would be changes. In my telephone call to number listed in the letter I spoke with "Lonnie" explaining I had the option to "disenroll". I had also spoken with my pharmacist and he was emphatic about how we (FEPB Blue Cross/Blue Shield insured had been screwed! With the tiers, etc. the coverage was way inferior to what we had. Lonnie was very helpful instructing me on what info was needed to do a "diserollment". Thought I could fax this but after preparing the letter and 3 attempts at faxing, I sent by snail mail. Will be interesting to see how this turns out. I am 80 years old and don't need this problem.
I'm turning 62 this Summer. Retired Postal Worker with FEHB that will become PSHB come January 1rst, 2025. Am I required to take Medicare Part B when I turn 65 ? If I take Social Security at 62 am I required to have Medicare Part B ? Thanks
Thank you for watching. 1. Yes, the changes for Postal Workers will require Part B. 2. If you take Social Security at 62, you will automatically be signed up for Medicare Part A and B at 65. You can proactively decline Part B if you want, but it sounds like you'll want to keep that one going with your PSHB.
@@gman-xd5hdthis change is part of a plan to save the postal service which is drowning in debt. The postal leadership including Unions agreed to it. We’ll see if it works. Also, lose not loose.
In 2025, Postal benefits change are you aware of this and can explain? Also, can you communicate to me tips or knowledge for postal workers that plan to keep working past 65 for few yrs if able - thank you
Related..... But not Medical... Can anyone comment on availability for adding spouse on ( federal) life insurance ( at time of application to retire?) ... Obviously.. rates wont b cheap . But ... Is the option there ? ...
@@steveb.4809 you can add a beneficiary at anytime with no additional cost. The older you get, the life insurance is more expensive and by age 65 decreases in value. If you are healthy I recommend outside life insurance policy.
So if you are doing Tricare for Life, you need to get Part A and Part B. VA only is different. If you have access to Tricare for Life, take Medicare A and B and then TFL
I wasn’t aware that that I had to cancel FEHB in order to get Medicare Supplement coverage. In other words, this means that a person with FEHB cannot suspend FEHB and have Supplemental coverage. Can I suspend Medicare and only have FEHB?
Many retirees believe their fehb coverage changes at age 65. That is false, but there could be a change in how you are billed as discussed in: 5 CFR Part 890 Subpart I -- Limit on Inpatient Hospital Charges, Physician Charges, and FEHB Benefit Payments. Hospitals, physicians cannot bill you more than the amount that medicare would approve, provided the hospital/physician takes medicare. You will get indirect medicare benefits by not even having medicare. Your coinsurance might even be less if you are billed at the medicare rate, which is usually lower. Its a different story if a provider is a medicare opt out.
I had to sign a form RI79-9 to suspend in Oct 2019 when I got my Adv Plan, but now I see OPM website says you don't need to suspend when you get an Adv Plan.
As far as I’ve been able to tell most FEHB retirees plan’s don’t coordinate with Medicare on part B drugs which if I understand it correctly means they’re not covering the part B 20% coinsurance. They are starting to offer part D plans as part of the retirement policies if you’re signed up for part A&B.
Is this the automatic switch in the Drug plan to a Medcare one, unless you wanted stay in the old one and fill out paperwork. It's supposed to be better, but I don't know yet. They will reject many of your drugs unless your doctor asks for authorization.
I am a retired federal employee, and have Medicare A and B, as well as FEHB. This year, I received a notification that I would be enrolled in Medicare Part D or could opt out. I opted in. In this instance, the Medicare Part D program for prescriptions overrides the FEHB prescription plan. It is of no extra cost to me. I find this works out well for me, as my income as single is under the $103,000, so my Medicare premium is $174.70 monthly. My question is, since I now have Medicare Part D at no cost, and it overrides my FEHB prescription plan, why is my FEHB premium the same amount? If I can’t use the FEHB prescription plan because I now have Medicare Part D, shouldn’t my FEHB monthly premium reflect a reduction for no longer covering prescriptions? Or is the reason why the Medicare Part D is no cost to me because I’m already paying for it in my FEHB premium? If this is so, is the $ portion of my FEHB plan that is for prescriptions somehow being transferred to Medicare Part D. And if not, then people paying the same FEHB premium as if they have the prescription coverage, are overpaying, no?
I think the share of insurance premiums that go to the drug benefit are being transferred to the new part D program so it’s not really ‘free’ it’s replacing that part of the active employee insurance plans for retirees. If you’re in the postal service you will have no choice but to take the new part D plan.
@ I was not in the postal service. I worked for DoD. So if I understand you correctly, the reason why I do not have to pay for Medicare part D is because my FEHB insurance (which is Federal BC/BC) prescription plan $ are transferred to the Medicare Part D prescription plan? Is there somewhere I can verify that?
Ive read dozens of opm and professional advisor articles on fehb/medicare when you reach age 65. My conclusion, medicare b is not necessary. Dont forget, even with a fehb plan that reimburses you for the partial amount of medicare b premium, at a minimum, you will be paying $1100 more in premiums each year if you take medicare b. That amount will cover alot of copays/coinsurance with just your fehb plan. My policy has a $5000 catastrophic max, and Im ok with that.
Ok, say 65 years old and still working as civ and have fehb. If I decide to take medicare Part A does Medicare become primary? I was not sure when it becomes primary when you take A or B?
@@DesignBuildFixReview VA employee still working here. I’m 65 and have BCBS BASIC SELF +1. As long as you are still working BCBS is primary. My spouse (71) retired , is on my FEHB plan and has part A (Hospital) only. BCBS is still Primary. Once I retire, then Medicare will become primary and BCBS will be Secondary for both of us. Hope this helped.
@tinascott1997 So you don't get any discounts from BCBS yet due to having medicare while still working? I know we get a few thousand dollar discount for self plus 1 in the future.
You may be wrong ... Medicare allows those "annuitants" that wish to keep FEHB coverage - instead of signing up for "Part B" - to NOT INCUR the 10% penalty per year if at some point in the future that person decides to switch from FEHB to Part B. This is an allowed exception where as long as Medicare is notified that the person is keeping (and paying for) FEHB coverage then deferring enrolling in Part B at a later day does not incur any penalties ... may want to revisit your research and correct your video if warranted.
Hi there, thank you for watching and your support. Unfortunately, this isn't how we understand it, nor is it our experience, and it's also not how OPM defines it. Remember, we are talking about Retired people with FEHB and they qualify for Medicare... "Annuitants." What you are referring to are those who are still working (or their spouse is), have FEHB, and are Medicare eligible. This is different, and yes, once you stop working if it's after 65, you do have a special enrollment period with no penalty. Here is what OPM has to say: www.opm.gov/healthcare-insurance/healthcare/medicare/medicare-part-b-coverage/ *What Happens If I Don't Take Part B as Soon as I'm Eligible?* If you do not enroll in Medicare Part B during your initial enrollment period, you must wait for the general enrollment period (January 1- March 31 of each year) to enroll, and Part B coverage will begin the following July 1 of that year. If you wait 12 months or more, after first becoming eligible, your Part B premium will go up 10 percent for each 12 months that you could have had Part B but didn't take it. You will pay the extra 10 percent for as long as you have Part B. If you didn't take Part B at age 65 because you were covered under FEHB *as an active employee* (or you were covered under your spouse's group health insurance plan and he/she was an active employee), you may sign up for Part B (generally without an increased premium) within 8 months from the time you or your spouse stop working or are no longer covered by the group plan. You also can sign up at any time while you are covered by the group plan. Hope that helps! It's an important topic for sure!
@@Theretirementnerds Yes, @VirtualJohnDoe is indeed mistaken. I'm a federal employee with USAF approaching retirement. The WAIVER of the 10%/year-of-delay after initial eligibility penalty regards current FEHB enrollees who remain actively employed beyond the age 65 initial eligibility period as you state. In fact I know of an individual who retired, did NOT pick up Medicare B when first eligible, then later paid the penalty to enroll.
So as a 67yo retiree covered under my wifes FEHB, with part A only for now, I will be good until 8 months after her retirement to be able get part B without penalty is the way I understand it.
You said you can't think of a reason to not sign up for part A. If you are enrolled in any part of Medicare (even just part A), you are not eligible to contribute to an HSA. Therefore, in 2024 a federal employee who signs up for part A would not be eligible to contribute $8300 (family limit) into an HSA. Many feds will be in the current 22/24% tax bracket due to their pensions. That is an opportunity cost of nearly $2000 for some feds. Don't forget that HSAs do not have earned income requirements, so a fed can lower their tax bill by contributing to the HSA even without W2 income.
@@Theretirementnerds Thats the point, yes they can. It is a consideration in choosing a FEHB plan. You can continue with a HDHP plan and contribute to a HSA in retirement. In fact, you can do it with TSP (fed 401k) funds so that it is super charged "Roth" style conversion. Because it is an HSA and not a Roth, you save twice on taxes. Don't get me wrong, I have no idea if anybody's actually doing this, but it is possible. It is an obscure reason for choosing to delay Medicare part A.
Very, very very sound explanation of a super complex topic. Thank you!
Thank you so much!
Outstanding video with excellent information!
Thank you, sir!
You mentioned a term late in the video that all federal employees and retirees need to remember: suspend.
When and IF the time comes, SUSPEND your FEHB.....DO NOT GET RID OF IT ALTOGETHER!
Suspending your FEHB allows you (or your spouse if you pass away) to get that health care insurance benefit back again if you choose.
Very important.
Thank you!!
As a postal retiree, the new PSHB give you a choice to volunteer to sign up for part B, if your already retired. If you go that route then you WILL have both the part B premium and the premium for your plan under the PSHB. Deciding to pay for 2 insurance premiums will give you almost 100% coverage where the PSHB plan will cover deductible, co pays & etc. But the additional cost needs to be figured if you want any large medical events that will result in more $ than the additional premium. Since we can't predict the future of our health, each person will need to decide if the extra premium is worth it, or take their chances & get stuck paying those deductible, co pays & etc. Lots to consider, a " catch 62".
I am also a Postal retiree and have listened to my insurers podcast on the subject. It is great coverage for them. Being secondary payer their cost is practically eliminated but there is no reduction in premium costs, making it a real money maker for them. What they don't really talk about is the drug coverage. One chemo treatment and you can hit your catastrophic out of pocket. Having Part B would be of no benefit in this scenario, just more out of pocket having to pay Part B premiums. Will I ever need chemo? Hopefully not. I remain conflicted- take Part B or not.
@kathleenharsha6504
Yes, it's a " sticky" situation. Drugs are handled just like they are now, you have a copay. Yep, you pay all that premium & drug cost is Not any lower with part B- go figure! WAY too much $ & the insurance company makes out like bandits. Only on things medicare doesn't pay will the PSHB pay,plus co-pays, deductibles & etc that medicare doesn't cover. My game plan is get part B, then during open season sign up for a medicare advantage plan with no monthly premium & SUSPEND the PSHB. You would still have co-pays, but of your not too sickly those are FAR cheaper than a high premium from PSHB is surely going to charge. I would use that $ to pay as I go for co-pays, deductible & etc. Surely it will be less than a set monthly premium. This is just for my 1st year. Will see how it goes. Then can always change back to PSHB & drop the medicare advantage plan next time around. That's if you find your needing more care/surgeries and etc. I refuse to pay double premiums at the start until I see how this works out. Getting part B penality free is a good thing I believe. Who knows, down the line the PO may decide not to offer health insurance to retirees and only to working employees. Another stab in the back & if you didn't get part B, you are left with NO insurance at all. In the marketplace it would be unaffordable for me. So, all premiums will go up & we will just have to adjust. At least I would have part B and could get a medicare advantage plan every year. Without part B, you can't do that. Do the research on what medicare advantage plans will be available to you. Try for a 0$ monthly rate, then you will only pay the part B premium. The PO really threw all of us under the bus here, so no answer is perfect & everyone needs are different. For now that's my plan. Hope this helps !
I’ve been retired for 4 years & have Medicare Part A & FEHB. FEHB pays for drug coverage & pays for most medical expenses. Plus if you travel or live overseas Medicare won’t pay, but FEHB will pay. I am happy with my decision.
Thank you for sharing!
Blue cross blue shied is very picky in overseas even though they say they cover in overseas, they usually don't. I switched to foreign service benefit plan but more expensive than Blue. Thinking about switching back to Blue because of the plan cost but not sure.
@@ConnieBach I have travelled overseas & used medical facilities & Blue Cross has paid, & I know about other retired federal employees who live overseas with no problems.
This is an upcoming stressful decision for myself as well. Have been researching it for more than a year. On the one hand FEHB coverage is good, but premiums are high. Doing “Medicare part B + a quality supplemental plan G + annually shopping the best overall part D plan” instead of “FEHB + Medicare B” appears to have a lower overall premium with about the same out-of-pocket, and lower drug cost. But if one walks away from FEHB, they can never get it back. From my research, it looks like the FEHB plans are more expensive than doing a combination Plan G supplement and part D plan. What am I missing?
Only problem with your theory, the Po (opm) will not allow you to get a supplement, only a medicare advantage plan. If you insist on a supplement, you Must cancel your fehb/ pshb & you will not get the penalty waived to sign up for part B. You will pay the full amount plus any penalty you may incurred for the rest of your life. Yes supplement &drug plans ARE definitely cheaper, but they won't let you do it that way. So be very careful what & how you choose
That’s what I wonder. Everyone talks about how wonderful FEHB retirement insurance is but several of the major insurance plans offered don’t coordinate with part B drugs and at least the BCBS doesn’t fully coordinate with skilled nursing either. The drug formulary appears to be better than most part D plans though.
The one part you got wrong is that you can get your FEHB back if you suspend it instead of walking away.
@CouchFamilyUSA
You also cannot get a supplement plan + drugs plan and keep your fehb. FEHB only let's you SUSPEND their plan to join a medicare advantage plan. So you SUSPEND fehb & join a medicare advantage plan in your area that has a 0 monthly premium. These will only be offered OUTSIDE of ANY plan the PSHB will offer. Then you just have part B premium to pay & 0 premium for the advantage plan you select. Just SUSPEND your fehb so you CAN get it back in the future if you need to.
Your missing that two FEHB plans/ Blue cross basic & Aetna give you money back every year to supplement you Medicare payments I think it’s $900 a person
Once you leave the FEHB plans your done
Thank you for these very detailed explanations. My late husband had FEHB and Medicare part A. He had many health issues and never needed to pick up part B. Now that I'm getting closer to 65, I think I will do the same.
This is EXACTLY my situation! I'm a retired federal employee (about to turn 70) and I have Medicare Part A. I've had only one hospital surgery since retirement (plus colonoscopies every 3 years), and so far out-of-pocket expenses haven't affected me financially. With $1m in liquid assets, a mortgage-free home, no one to leave any of my assets to except a charity, a decent pension and annuity income, $4600 gross in SS benefits kicking in in 9 months, $2-$3k monthly expenses, and a part time job, Plan B doesn't seem to make sense for me.
Thanks for sharing! I was thinking I do not need medicare B, just A and my FEHB insurance. But was not sure if I would regret it for not signing up for B. After hearing your story, I will get A only.
But if you don't pick up part B, then isn't your FEHB plan limited by law to pay no more than what Part B would pay? 80%? That 20% gap might be really expensive for a big medical event.
I thought I had done a thorough job researching this, but I totally missed the 2-year "lookback" for income. Thank you.
So glad it was helpful! Thank you so much for watching!
Thank you for the information on Medicare benefits
Thank you Eddie!!
I am a Civil Service Annuitant (CSRS) with Basic BC/BS plus Medicare Parts 1 & 2 as does my husband. Neither of us have had to pay any healthcare cost since retirement. There has been a solid organ transplant, cataract surgeries, eye shots that cost over $1,000 having twice a month, broken ankles, etc., etc. We also receive $800 cash back each year to each of us from our BC/BS Basic. We each have our own policy…no longer need the more expensive family plan. We couldn’t be more pleased with our coverage! Without our federal plan, we are able to travel the world without taking out additional travel health insurance. We’re fully covered.
I'm glad I'm not a retired federal employee. This sounds very complicated - more than regular Medicare is. I did work for the Social Security Administration from 1982 - 1985. I got out of there pretty quickly.
There are pros and cons for sure :)
Had to call SSA to stop benefit payments to my mom.
Estimated wait time... 1 hr 10 minutes...
@@Theretirementnerds Ugh -- typical. When my mom passed away in 2013, the funeral home required us to supply her SSN and my deceased father's SSN (since she was receiving widows SS benefits under his SSN). They said that they are required by the government to report the deaths of people receiving SS benefits. We did have to notify every other entity -- her Medicare supplement co, her pension company, etc.
@tomm7505 I've heard this now from multiple people. The Mortuary people we worked with didn't do this for us, so super confused on how that works. They gave us a paper and phone number to contact SS and I took that on instead of my siblings. Would've loved to have them do it for us.
Be ASSURED, that the changes made ONLY to Postal retirees will result in most of them getting shafted. I worked for them for over 35 yrs, and have never seen them do anything to
help their employees.
@@carlsanders7824 then why work there?
Best video on the subject I’ve seen. Thanks.
Thank you!!
Outstanding video and how you explained it in detail. The links in your description help me out. Thank you.
Thank you so much!
Well this one didn't pertain to me, but I had to watch for the support aspect of it. I did learn a new word, "Annuitant" Great Job!
You're the best! Annuitant is an interesting word to say out loud :) Thank you for your support!
Thanks for giving me the true answer regarding the FEHB advantage plan disadvantages that's what I needed for an inform decision. Thanks again.
Of course! Thank you for watching!
I want to share this info:
I just called SSA today 11/2024, you need 2 forms to enroll on Part B. 1) CMS 40B and 2) CMS L564 this form needs OPM to fill out the bottom. Mail to them with a cover letter to return it to you. Once you hand in L564 to SSA, there is no late enrollment penalty. 🎉🎉🎉🎉
My hubby wants to PAUSE FEBH, and enroll in Part B, supplement and D. No more networks.
TG!
That is an excellent explanation of a complex topic. My sister-in-law became permanently disabled in 1996. She is covered by her late husband's FEHB plan and Medicare Part A. Since she turned 65 in November, her Social Security Benefit was reduced to cover Medicare Part B, but she does not remember enrolling in Part B and would like to terminate Part B and keep FEHB plus Medicare Part A. What are the implications of dropping Medicare Part B, and how can she implement her plan to un-enroll in Part B?
One thing thing not mentioned about cost coverage. Some FEHB plans will pay part of the Part B to encourage people to apply for it.
Thank you for adding this!
My husband has Medicare A & B and my FEP Blue Cross. This year BC reimbursed $800 of part B premium.
I have PSHB Federal BLUE CROSS BASIC and A and B Medicare. Do I have to make sure I am in the BLUE CROSS Providers and Medicare list
GEHA (a FEHB plan) has a Medicare Advantage plan that will reimburse you for your Medicare Premium up to $180/month. It costs about the same as basic GEHA.
As always your thoroughness in explaining options are first rate.😁
Thank you so much!! :) Appreciate you watching and your support!
My parents are enrolled in a FEHB plan plus Medicare parts A and B. They also enrolled in an additional medicare advantage plan specifically offered only for annuitants that have parts A and B and the high option health plan through NALC. They did this because they get unlimited therapy visits and lower prescription costs and a reimbursement of 75 per month each plus dental and vision coverage and other perks. Their premium is 480.54 per month plus the part B premiums. Yes, it adds up to a lot, but they never pay anything for medical needs except prescription drug copays.
They’re paying around $7k year in premiums. Too much coverage
@teeduck Yes, they pay a lot in premiums, but since both my parents receive multiple therapy visits each week, whatever they would save on premiums by getting a cheaper NALC plan or a regular Medicare advantage plan would be more than offset by their medical expenses on those plans. Even a $25 copay 3 times a week adds up!
@@Loveandlight325 Makes sense! You know what is best for your parents if you have done the research.
@jannjackson8461 Well, I have to make an update since I made this post. The group NALC sponsored advantage plan was great until it wasn't. My mom had an accident in June and broke her femur bone. After emergency surgery and being admitted into a skilled nursing facility, the advantage plan refused to pay for her skilled rehab stay after 6 weeks, even though her treating doctors said she still needed skilled care. I switched both my parents back to Original Medicare with secondary NALC high option plan because I refuse to have a private, for-profit insurance company make the medical decisions based on benefitting their bottom line rather than medical necessity. I was naive and thought a group employer sponsored advantage plan wouldn't operate like the individual medicare advantage plans, but I learned my lesson the hard way. A for-profit insurance company only has their interests in mind, which isn't getting you the medical care you need and deserve.
I have the same FEHB as your parents. I was curious as to what the 75.00 reimbursement is for. I opted out of the Advantage Plan and opted out of the Silverscripts. Thanks!
Is it possible to delay taking Part A (and B) without penalty? I am a federal CSRS retiree/annuitant turning 65 next month (Feb 2025), my wife is 62. We have FEHB Blue Cross Basic self +1 that has been very good for us. With the upcoming 65th birthday, I'm inclined to take Medicare Part A only, keeping Blue Cross as primary for both me and my wife, at least until she turns 65 when we can consider dropping the Blue Cross for Part B, but I know that comes with a large (30% for 3 year delay) later Part B penalty. It's not in my budget to pay the additional Part B premium now (along with our Blue Cross), so I'm facing a dilemma. Ideally I'd like to delay medicare completely, maintaining status quo until she turns 65 and becomes medicare eligible, considering dropping BCBS for Part B at that time. Is it possible to do so, and without the delay penalty?
One correction on PSHB. They do not require you to take Med B, however employees after 2024 will be required. Prior annuitants have the option to take Part B wo penalty if they did not sign up previously. USPS is picking up the penalty by 9/30/24 and you have till 12/31/24 to cancel if you change your mind. Unfortunately IMO another cart before the horse Quasi Govt rollout. Fewer choices and on first release looks like higher premiums compared to FEHB. They couldn’t leave well enough alone. Do you have numbers if FEDS do or do not usually take Part B.
The PSHB changes are part of the deal to try to save the postal service which has been drowning in debt. Not surprising about the cost difference considering it’s a smaller risk group and one that’s more likely to have medical costs due to the physical work involved in the mission of the postal service.
Perhaps this has already been mentioned but I believe you missed one other important category. That is to not have any Medicare a or B, but to continue with an FEHB plan particularly an HDHP plan with an HSA. This could be a useful option for healthy couples as they reach 65 and beyond. It must be noted that once eligible for full retirement Social Security you are required to take part a. So this would disqualify the HDHP from having an HSA. One could continue with an HRA at that point though the benefits are unlikely to outweigh the cost. The decision at that point is which FEHB plan to take in order to have adequate coverage now that you only have part a. A small minority can find this beneficial if they have a high IRMAA premium as they can still pick up Medicare part B to add to an FEHB plan. Though subject to the penalty someone in a high IRMAA bracket will have saved many years of full IRMAA premiums. certainly more of a corner case but One worth considering with adequate analysis and planning.
How do we find you?
My email is erik@90daysfromretirement.com
Feel free to send me an email. I'll just need to know what state you're in 🙂
Good job and well done. I do believe however that the rate at which you spoke awas a tad tad bit too fast
In the video settings, change "Playback Speed" to 0.75 if you want to hear him speak more slowly.
@@Radmando5 I keep forgetting about that, thanks
is there someone that I can talk to about FEHB, Medicare and VA so I can make a better informed choice??
Got your email! Just responded!
Would you post a follow up to what you learn? I’m in the same boat very soon.
Taking Part D inlu of giving up FEHB drug coverage is probamatic to me what do you gain by taking the part d option fehb offers! I know my parents are stuck buying drugs on amazon I don't want that.
1) My husband has FEBH, whenever there is a problem I use a RX coupon. Ex. When he needs RX before refill date. The coupon price is very similar to insurance RX cost.
Walgreens has RX coupons on their site.
2) Costco pharmacy has excellent prices.
3) Mark Rubin’ drug site.
Hope this helps.
@sct4040 Good RX has a great site that compares prices at locations and has free card. prices vary a lot where you go. Doesn't work all that great for expensive drugs.
A question I can not seem to find the answer to: My situation is retired postal worker at age 62 and non-federal spouse is 67 on Medicare A/B What would be the best approach for a hybrid coverage cost wise? From what I have researched you can not suspend FEHB/PSHB for non federal spouse to sign up for Medicare C Plan , Could I opt for Self Only and spouse opt a Medicare C Plan and return to PSHB plan next open season Self plus One, the risk I see is if upon death under self only the spouse would loose PSHB before you could change back to Self plus One. Does this make sense or should you just have a BCBS Basic Self plus one and spouse keep Medicare A/B, or with the new PSHB Medicare Adv plans one be on self BCBS and spouse on PSHB Medicare ADV self only ?
I carry FEHB and Medicare. My wife is covered by my FEHB benefits.
I think you made a major error at the 4:15 point in the video which you later repeated 10:50 point. If an indiviual is enrolled in the FEHB he/she is enrolled in one of the insurance plans offered by a major insurance company. These companies include BCBS, UHC, Aetna etc. The plans are PPOs and HMOs and they all have networks. You make the statement that if an indivual with an FEHB plan enolls in A and B they have access to any provider that participates in Medicare. This is inaccurate. The networks (and the restrictions) do not change.
Hi Keith, thank you for watching and pointing this out.
First, there are some semantics involved here. Second, we could've been more clear in the video, for sure, so for that I apologize.
On the semantics side, even with an HMO or PPO FEHB plan, the annuitant still has access to any provider or facility that participates with Medicare with their Part B coverage.
Whether or not what Medicare does not cover is paid for by the FEHB plan absolutely depends on what you mentioned - which FEHB plan does the individual have.
If someone were to have just the FEHB HMO plan as an example, and no Part B, and that individual visits an out of network provider - they would be liable for the full bill.
If that same person had Medicare Part B as well, they would at least have the Medicare coverage of 80%.
Hopefully that helps. Totally understand what you're saying and agree that we could've said that better.
Thank you!
😮
Can i include my child when I retire 0:08 in my FEHB without election of survivor anuity?
Depends on child age and student status
@@David-cv3bp He is 15 y/o. Thanks for your reply.
@@sallypizan1343 a 15 yr old would be eligible for your health benefits, up until @25 with school.
So it is alright not to elect survivor anuity to have FEHB for my son my current health insurance is Self plus one thank you for your information.
@@David-cv3bp So it alright not to select survivor benefits I have self plus one health insurance my son is 15 y/o thanks for your information.
Good information, but overlook one important issue for federal annuitants approaching 65.
Spouse coverage, I'm getting ready to turn 65 my wife who is younger than me gets her insurance through my FEHB, dropping or suspending FEHB is not an option at least until she hits 65.
My spouse has Medicare Part B through a disability retirement and I do not. We have FEHB through the Postal Service and I rarely go to the doctor. My wife however, has chronic conditions. Will she continue to receive Part B and then I wouldn't choose Part B if I just choose FEHB. I am 65 and she is 62 Thank you also you have a great channel.
Thank you so much!
From what I understand, if you have postal benefits, they'll be having you take Part B. May need more info on your specific situation if you want to send me an email to erik@theretirementnerds.com
My wife and I are 47. She is a federal employee. When the times comes i want her to enroll in MA only and get Part D from FEHB. How does that sound? Great video. Thanks
Definitely an option. She will need to be enrolled in Medicare Part A and B to get an MA-only plan, so you'll have that Part B premium to consider, but that is definitely a route you can consider.
Advantage plans will have changed dramatically by the time you retire, so you probably want to revisit your decision. Currently, Medicare Advantage can be difficult for people with any type of chronic or critical illness because Medicare Advantage requires preauthorizations on procedures & medications. This means you have to wait until the insurance company approves these things which can take weeks or months. Also, Medicare regulations change every year so you really need to be on top of things when you're about to become Medicare eligible.
@@Roslyn111there are no drug plans that don’t have prior authorizations whether part D or employee retirement plans. Or for that matter active employee plans.
Is their a possibilty that you can assist in giving me further info regarding my current BCBS plan with medicare A/B to change to another FEHB plan with a lower premium.?
Unfortunately, FEHB doesn't work with agents like us. It is its own entity. We can give general guidance, but OPM runs FEHB and any plan changing.
FEP Blue Cross is trying to get enrollees to change their drug plan to their Medicare drug plan. I did the math for my husbands situation and it didn’t make sense for us so I opted out. Have you heard about this and what are your thoughts.
I have not :( Since agents really don't have any ability to see or help with the FEHB plans, we're not the most familiar with those workings. OPM is the place to see those. If you have the FEHB plan coverage we could compare it with what's available on the market outside FEHB. 2025 is shaping up to be expensive though :(
As a Federal retiree I was sent a letter in 12/2023 referencing the change of Blue Cross and saying I would have Medicare Prescription Drug Program effective January 1, 2024. Dummie me didn't take this seriously until in June 0f 2024 when I ordered my mail order refill on pain patches (Diclofenac).... never received them.. so in August started inquiring...did still have the letter from BC/BS dated December 4, 2023, explaining would be changes. In my telephone call to number listed in the letter I spoke with "Lonnie" explaining I had the option to "disenroll". I had also spoken with my pharmacist and he was emphatic about how we (FEPB Blue Cross/Blue Shield insured had been screwed! With the tiers, etc. the coverage was way inferior to what we had. Lonnie was very helpful instructing me on what info was needed to do a "diserollment". Thought I could fax this but after preparing the letter and 3 attempts at faxing, I sent by snail mail. Will be interesting to see how this turns out. I am 80 years old and don't need this problem.
this doesn't cover switching to a FEHB advantage plan ...
Thank you so much!
Thank you so much for watching!
I'm turning 62 this Summer. Retired Postal Worker with FEHB that will become PSHB come January 1rst, 2025. Am I required to take Medicare Part B when I turn 65 ? If I take Social Security at 62 am I required to have Medicare Part B ? Thanks
Thank you for watching.
1. Yes, the changes for Postal Workers will require Part B.
2. If you take Social Security at 62, you will automatically be signed up for Medicare Part A and B at 65. You can proactively decline Part B if you want, but it sounds like you'll want to keep that one going with your PSHB.
Yep, you have to get it--- like it or not !!
I know you just didn't plan for this, how could you? So the postal service now saves money, that means someone has to loose money. Who would that be?
@@gman-xd5hdthis change is part of a plan to save the postal service which is drowning in debt. The postal leadership including Unions agreed to it. We’ll see if it works.
Also, lose not loose.
In 2025, Postal benefits change are you aware of this and can explain? Also, can you communicate to me tips or knowledge for postal workers that plan to keep working past 65 for few yrs if able - thank you
Related..... But not Medical... Can anyone comment on availability for adding spouse on ( federal) life insurance ( at time of application to retire?) ... Obviously.. rates wont b cheap . But ... Is the option there ? ...
@@steveb.4809 you can add a beneficiary at anytime with no additional cost. The older you get, the life insurance is more expensive and by age 65 decreases in value. If you are healthy I recommend outside life insurance policy.
So I am Retired Military and currently working for Federal Government. So I get Medicare Part A and count on TRICARE for part B?
So if you are doing Tricare for Life, you need to get Part A and Part B.
VA only is different. If you have access to Tricare for Life, take Medicare A and B and then TFL
Will the FEHB become like part B after part A?
Yes
I wasn’t aware that that I had to cancel FEHB in order to get Medicare Supplement coverage. In other words, this means that a person with FEHB cannot suspend FEHB and have Supplemental coverage. Can I suspend Medicare and only have FEHB?
No, you cannot suspend Medicare
There are now some rehab Medicare supplement coverages, look at ll options during open season
Keep Part A, it’s free anyway with 40 quarters.
You must keep part A but you can drop part B unless you’re in the postal service. If you want to go back to it though there will be penalties.
Many retirees believe their fehb coverage changes at age 65. That is false, but there could be a change in how you are billed as discussed in:
5 CFR Part 890 Subpart I -- Limit on Inpatient Hospital Charges, Physician Charges, and FEHB Benefit Payments.
Hospitals, physicians cannot bill you more than the amount that medicare would approve, provided the hospital/physician takes medicare. You will get indirect medicare benefits by not even having medicare. Your coinsurance might even be less if you are billed at the medicare rate, which is usually lower.
Its a different story if a provider is a medicare opt out.
FEHB PLANS NOW HAVE ADVANTAGE PLANS WITHIN WHERE YOU DON'T HAVE TO SUSPEND RIGHT?
I had to sign a form RI79-9 to suspend in Oct 2019 when I got my Adv Plan, but now I see OPM website says you don't need to suspend when you get an Adv Plan.
my medicare + Geha high = no bills
As far as I’ve been able to tell most FEHB retirees plan’s don’t coordinate with Medicare on part B drugs which if I understand it correctly means they’re not covering the part B 20% coinsurance. They are starting to offer part D plans as part of the retirement policies if you’re signed up for part A&B.
Is this the automatic switch in the Drug plan to a Medcare one, unless you wanted stay in the old one and fill out paperwork. It's supposed to be better, but I don't know yet. They will reject many of your drugs unless your doctor asks for authorization.
@@SandfordSmytheyes but you usually need pre authorization on the regular drug formulary too.
I am a retired federal employee, and have Medicare A and B, as well as FEHB. This year, I received a notification that I would be enrolled in Medicare Part D or could opt out. I opted in. In this instance, the Medicare Part D program for prescriptions overrides the FEHB prescription plan. It is of no extra cost to me.
I find this works out well for me, as my income as single is under the $103,000, so my Medicare premium is $174.70 monthly.
My question is, since I now have Medicare Part D at no cost, and it overrides my FEHB prescription plan, why is my FEHB premium the same amount? If I can’t use the FEHB prescription plan because I now have Medicare Part D, shouldn’t my FEHB monthly premium reflect a reduction for no longer covering prescriptions?
Or is the reason why the Medicare Part D is no cost to me because I’m already paying for it in my FEHB premium? If this is so, is the $ portion of my FEHB plan that is for prescriptions somehow being transferred to Medicare Part D.
And if not, then people paying the same FEHB premium as if they have the prescription coverage, are overpaying, no?
I think the share of insurance premiums that go to the drug benefit are being transferred to the new part D program so it’s not really ‘free’ it’s replacing that part of the active employee insurance plans for retirees. If you’re in the postal service you will have no choice but to take the new part D plan.
@ I was not in the postal service. I worked for DoD.
So if I understand you correctly, the reason why I do not have to pay for Medicare part D is because my FEHB insurance (which is Federal BC/BC) prescription plan $ are transferred to the Medicare Part D prescription plan? Is there somewhere I can verify that?
Don’t unenroll FEHB, put it on pause instead. Once you unenroll, you are out of the program for life.
Ive read dozens of opm and professional advisor articles on fehb/medicare when you reach age 65.
My conclusion, medicare b is not necessary. Dont forget, even with a fehb plan that reimburses you for the partial amount of medicare b premium, at a minimum, you will be paying $1100 more in premiums each year if you take medicare b. That amount will cover alot of copays/coinsurance with just your fehb plan. My policy has a $5000 catastrophic max, and Im ok with that.
Well said!
You forgot that a future Congress could decide to limit or even eliminate FEHB coverage for retirees.
@@jrasterback7826 One can only make a decision based on what we know today and not what might be.
@@jrasterback7826 Yes, and Future Congress could also draft you into the Army at 70yo and then you would be covered by VA Insurance for free.
Ok, say 65 years old and still working as civ and have fehb. If I decide to take medicare Part A does Medicare become primary? I was not sure when it becomes primary when you take A or B?
A is primarily with hospitalizations. B is primary for in office visits and vaccines.
@@DesignBuildFixReview VA employee still working here. I’m 65 and have BCBS BASIC SELF +1.
As long as you are still working BCBS is primary.
My spouse (71) retired , is on my FEHB plan and has part A (Hospital) only. BCBS is still Primary. Once I retire, then Medicare will become primary and BCBS will be Secondary for both of us.
Hope this helped.
@tinascott1997 Thank you, I really want to hold off on having primarys switched as long as possible.
@tinascott1997 So you don't get any discounts from BCBS yet due to having medicare while still working? I know we get a few thousand dollar discount for self plus 1 in the future.
@ You are very welcome!
Also, I might mention that BCBS BASIC Will pay you up to / and or $800 per year for part B Medicare premiums
You may be wrong ... Medicare allows those "annuitants" that wish to keep FEHB coverage - instead of signing up for "Part B" - to NOT INCUR the 10% penalty per year if at some point in the future that person decides to switch from FEHB to Part B. This is an allowed exception where as long as Medicare is notified that the person is keeping (and paying for) FEHB coverage then deferring enrolling in Part B at a later day does not incur any penalties ... may want to revisit your research and correct your video if warranted.
Hi there, thank you for watching and your support.
Unfortunately, this isn't how we understand it, nor is it our experience, and it's also not how OPM defines it.
Remember, we are talking about Retired people with FEHB and they qualify for Medicare... "Annuitants."
What you are referring to are those who are still working (or their spouse is), have FEHB, and are Medicare eligible. This is different, and yes, once you stop working if it's after 65, you do have a special enrollment period with no penalty.
Here is what OPM has to say:
www.opm.gov/healthcare-insurance/healthcare/medicare/medicare-part-b-coverage/
*What Happens If I Don't Take Part B as Soon as I'm Eligible?*
If you do not enroll in Medicare Part B during your initial enrollment period, you must wait for the general enrollment period (January 1- March 31 of each year) to enroll, and Part B coverage will begin the following July 1 of that year. If you wait 12 months or more, after first becoming eligible, your Part B premium will go up 10 percent for each 12 months that you could have had Part B but didn't take it. You will pay the extra 10 percent for as long as you have Part B.
If you didn't take Part B at age 65 because you were covered under FEHB *as an active employee* (or you were covered under your spouse's group health insurance plan and he/she was an active employee), you may sign up for Part B (generally without an increased premium) within 8 months from the time you or your spouse stop working or are no longer covered by the group plan. You also can sign up at any time while you are covered by the group plan.
Hope that helps! It's an important topic for sure!
@@Theretirementnerds Yes, @VirtualJohnDoe is indeed mistaken. I'm a federal employee with USAF approaching retirement. The WAIVER of the 10%/year-of-delay after initial eligibility penalty regards current FEHB enrollees who remain actively employed beyond the age 65 initial eligibility period as you state. In fact I know of an individual who retired, did NOT pick up Medicare B when first eligible, then later paid the penalty to enroll.
@@BRFRGF thank you for confirming!
Yes, your wrong about that, but it's been clarified in another response. Be careful what you do in the end
So as a 67yo retiree covered under my wifes FEHB, with part A only for now, I will be good until 8 months after her retirement to be able get part B without penalty is the way I understand it.
You said you can't think of a reason to not sign up for part A. If you are enrolled in any part of Medicare (even just part A), you are not eligible to contribute to an HSA. Therefore, in 2024 a federal employee who signs up for part A would not be eligible to contribute $8300 (family limit) into an HSA. Many feds will be in the current 22/24% tax bracket due to their pensions. That is an opportunity cost of nearly $2000 for some feds. Don't forget that HSAs do not have earned income requirements, so a fed can lower their tax bill by contributing to the HSA even without W2 income.
This video is specifically for those who have retired.
Are retired federal employees taking HSA retirement plans?
@@Theretirementnerds Thats the point, yes they can. It is a consideration in choosing a FEHB plan. You can continue with a HDHP plan and contribute to a HSA in retirement. In fact, you can do it with TSP (fed 401k) funds so that it is super charged "Roth" style conversion. Because it is an HSA and not a Roth, you save twice on taxes. Don't get me wrong, I have no idea if anybody's actually doing this, but it is possible. It is an obscure reason for choosing to delay Medicare part A.
# 4 should not even be discussed. It just confuses people
@@charlesdavaro8554 I believe it should be there as an option. He did mention it as an unpopular option. Thank you for the video.
You’re overthinking it all.