Thread: Medicare and FEHB

Not a bad idea, thanks.

I promised myself after my Vietnam tour of duty not to go anywhere near a VA facility and I've held that promise.

Had a briefing on Medicare today during training weeks. It was presented by a person representing a FEHP provider but seemed pretty straight forward. The fed hosting the speaker seems pretty much a no BS person and I trust this person. I will be an active Fed when I turn 65.

What I took from this was

1. Sign up for medicare part A during your 65 window since it costs nothing.
FEHP will still be your primary insurance. Medicare becomes primary once you retire.
2. Sign up for part B during your window. For me it will be within 8 months of retiring. Somewhat expensive.
3. Keep FEHP in to retirement. Somewhat expensive. This MAY cover the part B 20% no payment. You should check out reducing the coverage IF it will still cover the Medicare part B deductible.
4. IF you are using TriCare you will be converted to TriCare for life at age 65 IF you have Medicare part B OR a qualifying coverage. I am told FEHP will qualify. I need to check that out. If you do not have a qualifying plan, TriCare will dump you. Thanks for your service.
5. Seems like whatever you do, you need to sign up for Medicare part B during your window. If you don’t the premium goes up 10% per year after 65. This year it is $104 per month per person.
6. Medicare (all parts) is NOT a family plan. It is only for the eligible individual.
7. Best deals are Medicare A+B and FEHP reduced plan or Medicare A+B and TriCare for life if eligible.
After the presentation there was a personal Q&A time. I asked about the spouse during my 65^th year and retirement since she will not be Medicare eligible. The reply was if I reduce FEHB coverage she will be covered at that level. She must apply for Medicare parts A and B when she is eligible. I THINK the Tricare for life brochure says she is still covered under Prime until eligible for Medicare. Cannot find that info right now.
PO

I found the TriCare for life brochure, it says a lot about if your spouse is eligible for Medicare before you are. Nothing I can find about spouse (dependent of retired military) who is not Medicare eligible when I am.

Also about getting Medicare part B I find this:

If you are entitled to premium-free Medicare Part A, you must also have Part B to remain TRICARE-eligible, even if you have group
health plan coverage based on current employment. Sign up for Part B before you retire or lose group health plan coverage to ensure your TRICARE coverage under TFL will begin immediately following the end of your group health plan coverage. Your TFL coverage begins on the first day you have both Medicare Part A and Part B coverage.

Crystal clear? Not to me. Sounds like I need part B Medicare even while covered by FEHB.

No info so far on what covers 61 year old dependent after I am thrown out of TriCare. Thanks for your service. FEHB confuses the issue.

Anyone who experienced this have any advice?

PO

Posted In 'That Other Thread' Reposted Here

It's an old thread but I turn 65 in 6 months, therefore I am being bombarded with offers for health insurance! The whole world seems to know I am soon to be eligible for Medicare and would I care for any additional health insurance?

It was a quandary until I reduced it to an inequality like SS itself. In SS you can take it 'early' at 62 and get 2/3rds or wait until 'full retirement' and get it all. Work it out and you will see you must wait until ten years after 'full retirement' to break even. I took it 'early' after I consulted the actuarial tables.


In Medicare you get Part A free so no consideration there. Part B you pay X dollars for monthly. Part B replicates what I get from BCBS and costs a lot less but applies only to me. (If I took it I would still have to carry BC for my younger wife, canyadigit?) Not taking Part B incurs a 10% per year penalty on the premium should one decide to take it later. Supposing we planned to go on Medicare completely once she is eligible 5 years hence, should I sign up now and pay for nothing or should I wait and incur the penalty?

The answer is in the 10% penalty. It equates to ten years payout before you break even, just like SS. That is, if I take Part B now and pay the premiums meanwhile, it will be ten years after wifey turns 65 that we begin to see any cost savings.

Answer is, don't take Part B now, take it later if at all. I'll be 80 years old before the inequality turns against me and I don't think I'll care much one way or the other at that stage.

FERS/CSRS: I am FERS and happy. SS about equals my pension and the TSP kicks in 40% of my annual income. I have more pocket money now than when I was working.

I was CSRS and retired 2 months from 65 with a wife 5 1/2 years younger than me. I retained BCBS [Basic] so far it covers evrything that Medicare doesn't cover. Part "B" only pays 80% and BCBS gets the rest including doctors visits coinsurance etc. There is a payment of $150 for emergency room and $125 for Hospital if admitted, $7,000 catastrophic, no other deductable. The Wife is covered 100% by BCBS including Prescriptions. I get the Prescription thing from BCBS all for $321 a month + $104 for Medicare part "B".

I retired in 2006 and did the same thing Norm did. It's worked out for us as well. I had to have a total thyroidectomy earlier this year (Cost for doctor's, hospital, etc : Over 34K). I ended up paying about $1800 out of pocket after everything was said and done. I feel like I was well taken care of.

FS

Originally Posted by nnuut

I was CSRS and retired 2 months from 65 with a wife 5 1/2 years younger than me. I retained BCBS [Basic] so far it covers evrything that Medicare doesn't cover. Part "B" only pays 80% and BCBS gets the rest including doctors visits coinsurance etc. There is a payment of $150 for emergency room and $125 for Hospital if admitted, $7,000 catastrophic, no other deductable. The Wife is covered 100% by BCBS including Prescriptions. I get the Prescription thing from BCBS all for $321 a month + $104 for Medicare part "B".

So you kept BCBS and picked up Medicare Part "B" as well as Part "A".

YES, Medicare part "A" was free and if I would have not brought FEHB into retirement I would lose it for ever. I surely didn't want Obamacare.

Norm, you make a good point. For a long time you have been a heavy user of our health benefits. Were I able to say the same, I would certainly buy Part B. With BCBS Basic we pay hefty co-pays but get a break on premiums by staying in network. If you visit the doctor three times a month you will probably recover the $104 premium for Part B in co-pays you don't have to pay, if you get me. Medicare becomes your primary provider, BCBS picks up the co-pays.

Stuff happens but as it stands we've paid just a few co-pays last year and this. I can still change my mind later and come out ahead, as I mentioned.

Thanks for the replies. OTW retirement is going swell except for the recent swoon in the market, haven't seen drops in the indexes like that since around 2008. Since 2011 I've taken $100k from the account and it stands right where it was when I left service.