Should I take Medicare or keep FEHB?
HTML-код
- Опубликовано: 4 ноя 2021
- UPDATED VIDEO: FEHB versus Medicare 2024 Update
• FEHB versus Medicare 2...
If you're a federal employees that's struggling to determine whether to apply for Medicare or just keep FEHB, this video is for you.
In this video, Thiago discusses the the parts of Medicare, why feds should consider taking at least Part B, the costs, and other considerations.
Read the full article here:
For more info on FEHB ►►► thefedcorner.com/articles-%26...
-----------------------------------------------------------------------------------------------------------------------
►To see more strategies specifically for federal employees check out: thefedcorner.com/
►Want to see more of our videos? Click here: ruclips.net/user/thefedcorner?...
►If you'd like help from a team of Certified Financial Planners (CFP) that specialize in working with federal employees, visit our website at thefedcorner.com/need-help-pl...
--
Make sure you Subscribe to the channel and click the Bell icon to be notified whenever we release new financial strategies for federal employees.
The Fed Corner is a purpose driven channel of information and financial planning strategies specifically designed for Federal Employees. We talk about money, building wealth, navigating your federal benefits, financial planning, the economy, the markets, and more.
Copyright © 2021 The Fed Corner - All Rights Reserved. The things we talk about are not to be taken as advice, visit our site for disclosures. #TheFedCorner
I am retired from federal service for nine months now, having retired 4 months before my 66th birthday. I was so uncertain about what to do with health insurance at retirement, but kept hearing that if I take Medicare Part B as primary and keep my BC/BS plan as secondary, I will have almost no out-of-pocket expenses for medical care. This is huge for me because I have several auto-immune diseases and began needing joint replacements in my early 50s. Where I worked for VA, it was nearly impossible to get real feedback from federal retirees about this issue. But, I took a leap of faith and signed up for Part B as soon as I retired, and I kept my federal BC/BS for secondary. Yes, it's a big chunk of change to pay both premiums every month. However, it's well worth it for me. I just had a hip replacement six weeks ago. I have no medical bills from that. All of my medical care for the past 9 months - same story - no bills. Now, for someone who is super healthy, maybe this isn't such a big deal. But, who knows what the future will bring once we are in our 60s and 70s. My health problems began in my 50s, so I knew I had to have great coverage in retirement. I am so grateful that I had the ability to carry my federal BC/BS into retirement as my secondary insurance. For me, it is worth paying both premiums every month.
This is great, thank you for sharing your experience. Do you mind if we include this in our updated FEHB versus Medicare video that we're working on?
@@TheFedCorner Sue, you can include it. My VA had a virtually non-existent HR service, so it was really hard to get reliable info on this issue moving into retirement. I'd love to think my info can help future retirees.
@@jamminjack3993 Thanks!
We have a very similar situation. Definitely thinking it will be worth it.
Dude please kill the annoying background music so we can hear what is important to know
Will do! Thanks for the feedback!
@@TheFedCorner Glad to see I wasn't the first to complain about this, and I'm glad you responded. 👍
The annoying and loud background music is still there after two years!
Another option that you did not discuss is that Federal retirees can suspend their FEHB coverage in retirement, then restart it again later. That would be another way to keep their options open, but keep their medical expenses down. When they suspend FEHB they could be relying on Medicare and other coverage, such as Tricare retired, Medigap insurance or some other medical plan coverage.
Great point!
Having FEHB and Medicare at once can take a huge chunk of your income. It may be worth it, and it may be not. There's no way to predict your health needs down the road.
Great point. It's a personal decision that should be considered with the factors within your life. If someone has family members with health challenges, it's important to check if their FEHB plan in retirement will cover the care. If not enrolling in Part B, it's critical to keep assets appropriated correctly for any out-of-pocket expenses, both known and unknown.
Great discussion, thanks! Can you please link to the new Medicare FEHB video in the top section?
Here it is: FEHB versus Medicare 2024 Update
ruclips.net/video/ZtBUiefMwxk/видео.html
Thank you for the great information!
Glad to hear you found it helpful.
Another factor in this that people need to consider is coverage outside of the United States. I think Medicare just covers inside the USA. And Tricare and FEHB will cover outside of the us. So if people are planning to live abroad or travel extensively, then that could be a factor for them.
Another great point, thanks for sharing!
Wrong supplement plans cover overseas whereas advantage plans do not.
@@melblacke5726 Right M. Advantage is a specific program, not too many use.
In the late 1990s, Blue Cross Blue Shield developed a bad reputation for paying late and low amounts that doctors dumped them. My doctor did back then. Now I hear doctors love Blue Cross Blue Shield since they pay promptly and play no games. I run into silly games with Mailhandlers and now CompasRose. Just a mess over silly things such as getting a fix for a wrong code put in. Been working this for nine months. Can you do a video on when insurers go bad?
So sorry to hear about this. Unfortunately insurance carriers are private companies that will make decisions predominantly based on profits!
I’m a retired federal employee with FERS bcbs standard (primary). I also have a state pension with “free” bcbs CALPERS gold plan (secondary). Calpers also reimburses my Medicare part B premiums for wife and self. Should I take traditional Medicare parts A&B, drop my federal bcbs and save the monthly premiums, and keep my state bcbs Gold for copays?
Hi Julio, great question. For us to be able to answer this, there are several other pieces of information that you'll need to consider. We'd be happy to discuss them with you on a personal basis, just send our office an email to schedule a call.
Thiago, Thank you for your informative video! If on my 65th birthday and when I retire I elect to buy both coverages (part b and FEHB) what happens? Can I only be seen by Medicare providers? Thanks!
Excellent question! Some healthcare providers don't accept Medicare, but FEHB may cover the additional costs. The healthcare provider should be able to tell you if something is fully covered under a combo FEHB/Part B plan.
Some FEHB plans may provide coverage for certain items that Medicare doesn’t cover, including but not limited to: Routine physicals, and emergency care outside of the United States, some preventive services, dental and vision care.
Medicare may cover some services and supplies that some FEHB plans may not cover, including but not limited to: some orthopedic and prosthetic devices, durable medical equipment, home health care, limited chiropractic supplies.
Hope this helps!
I was told by a fellow retiree the same thing you stated that when you turn 65 your FEHB changes and the your coverage would not be the same. This didn't make sense to me since I'm still paying the same premium and should be treated the same as a Federal employee who is still working and or under 65. I called BCBS and was told that nothing would change in my coverage. It's also noted in the Q&A on OPM's website that your coverage will be the same. Having part B may benefit some federal retirees only because the FEHB plan doesn't cover the service, procedure or device fully or partially in the first place. Having FEHB and plan B would be a great upgrade with almost complete coverage. Am I missing something? thanks for posting the video.
Hi Kevin, FEHB in retirement is the same coverage technically, but we don't have control over what insurance carriers choose to cover. It's possible that they change coverage in the future, or cover less of something, because Medicare covers it fully. In those cases, if you make the choice to go to Medicare Part B, how many years beyond 65 would that be? There's a 10% annual penalty for every year beyond 65. If the additional premiums aren't too much to bear, the combo is just about as comprehensive as you can get.
@@TheFedCorner Thanks for the feed back. No one knows the future and BCBS coverage could change but I don't think it will be significant to alter my life style, but you never know. To answer your question I took part B at 65. I'm considering cancelling part B because my 2023 premiums increased to a level that not sustainable. I believe that it is an error and contacted them but I'm still waiting for a response since January. Thanks again!
@@TheFedCorner Also I don't understand your statement "It's possible that they change coverage in the future, or cover less of something, because Medicare covers it" My understanding is that coverage is the same for both retirees and current employees. Changing a coverage because of a Medicare policy would effect all BCBS members not just retirees. Am I missing something? Thank you
Thanks,all apply to my situation.I just got 800 payback!!had to apply?not automatically,read fine print.
Mike, we're so glad to hear about your success with this. Thanks for sharing!
Thanks for the presentation. But now Im confused- if I keep the same FEHB plan in retirement (which my doctor accepts), you’re saying that if I tack on Part B, that I wouldn’t be covered by my doctor if he doesn’t take Medicare?
Hi Ben, that could be the case. When having Part B and FEHB together, Medicare Part B will always be the primary insurer. If your doctor does not accept Medicare, you should discuss this with them before making any decisions to understand how they would handle this. Good luck! -TG
I will be 66 later this year and still working with FEHB. I plan to retire in mid 2024 or at the end of that year worst case. I have not signed up for Medicare A, but have heard that even if you are working and have coverage you still will be penalized 10% for every year you do not sign up for the part B. I had heard as you say that if you are still working with health coverage that the penalty does not apply. Which is it? Either way i am signing up for part A in the next 3 months, it is just this part B that is the bug-a-boo. For peace of mind i am leaning getting the B even with my FEHB. Thanks for any advice.
Part B comes with late enrollment penalties. If you actively carry a Medicare-equivalent health insurance through work, then the penalties are excluded. FEHB while working counts as equivalent. FEHB in retirement does not.
Trying to understand the FEHB Medigap policy comment as well. I have BCBS Std Option (normal premium) with Medicare Part B (with IRMAA premiums). BCBS Std Option with Medicare does now pick up copays and co-insurance charges that I paid out of pocket before Medicare. Is that what you mean by BCBS Medigap policy or is there actually different FEHB BCBS Medigap programs separate from traditional BCBS Standard or Basic Option. (It hasn’t come up in my research anywhere.)
Hi Deb, you may not see reduced premiums per se, but having both Medicare and FEHB offers more complete health coverage. This may allow you to scale back on your FEHB insurance for less costly plans if you find that Medicare covers such services.
The additional Medicare premium offsets any of the savings except for the copay and coinsurance assistance as you mentioned. When using both, careful planning is required to keep IRMAA as low as possible, as you've experienced firsthand. Hope this helps!
Blue Cross Basic + Medicare B will give you 0 co-pays and give you $800 back per year. $1600 back for self plus one. All you will have to pay are prescription co-pays.
I have Blue Cross Blue Shield. Basic and I have medicare A and B and get $800 back from Blue Cross Blue Shield and I joined an AEtna advantage plan so that they give me $85 back, Because I have prescription drug coverage through blue cross blue. The draw back is that I need to go to the AEtna Doctor's and the cross blue shield doctor network .I thought of setting aside my blue cross blue shield FEHP plan and enrolling in a supplement plan.G, or N what is your opinion about doing that?Thank you
I am trying to decide if a Medigap plan would be a better choice with Medicare than FEHB with Medicare. I regret not signing up for Medicare B and will get a second chance in 2024 with the SEP for PSHB, just trying to decide on Medigap for the long term versus BCBS federal for the long term and the cost of each down the road. Any incite would be appreciated!
FEHB BCBS has incentives that combined with Part B. We’ve not seen people drop FEHB altogether.
Thank you, I think we’ll keep BCBS.
I'm in the same boat with the SEP for postal employees in 2024. I'm going to sign up for Medicare's part B during the SEP to get that penalty waived. Then decide during this next open season to get a medicare advantage plan or see what the PSHBP offers. This way I can go several ways. Of being able to afford both will be the deciding factor, but at 77 I may have some big medical issues that would cost a lot out of pocket , vs no co pays, deductible and etc. So, still undecided. Think at this stage the penalty free sign up for part B is a good thing.
I agree, I received my paperwork to sign up and will do.
If continuing to work does the 10% penalties apply from age 65 for not signing medicare and what about taking spousal ssa benefits I thought once you enroll in social security you are auto enrolled medicare A
If you continue working beyond your age 65 and are on FEHB, there is no penalty for not filing for Part B. Once you retire, you begin the special enrollment window, the end of which you must sign up or face penalties if you do sign up for Part B later on. Soc Sec.: yes, being 65+ and on SS means you are on Part A.
I've been trying to get my Korean wife enrolled through Medicare. However, since I am a retired service member in Korea and my wife is Korean they said I have to go through the US Embassy in the Philippines. I started in March 2021 and some of the delay was sending certified mail to Manila. I did that through a military postal service. It took a month to get to Manila, the Philippines and sat there for 3 months due to a lock down. Finally around October the Medicare section in Manila said all the correct paper work was done and was sent to the US for processing.
My wife still hasn't received anything and now it has been 11 months and 2 weeks since we have started. I contacted Medicare in the US but they said I have to check with the US Embassy in the Philippines. However, the US Embassy says they have to wait for Medicare to finish in the US.
Talk about lazy, worthless and incompetent people. As a retired US Army service member, I was proud to serve my country. My only regret is that we also serve and protect those who could care less about us.
Ernie, I'm so sorry to hear about your experience. Unfortunately, it's not a unique one. There are many families who experience unnecessary delays, and it's compounded if living internationally. Thanks for sharing, and thank you for your service to our country!
For those of us living abroad and knowing that Medicare does not cover overseas, would Medicare take away services from FEHB
Do I need Part B if I have Medicare (primary), BCBS Federal (secondary), and Tricare for Life (tertiary) health insurance?
If you have Tricare, it is likely a superior plan, and when you turn 65 years old you will be required to be on Medicare Part B with Tricare for life. Hope this helps!
@@TheFedCornercould you please make a video or article on this topic? Retired military reservists, also federal employee, and maybe working as a fed past age 65. It's very confusing!
1. I will retire from Federal Gov’t at age 63 and begin drawing Social Security. My plan includes maintaining FEHB into retirement. I’ve been informed that because I’m drawing Social Security, I am required to enroll in Medicare Parts A & B. Is that correct?
2. My research indicates that as a former Federal employee, Part A costs me nothing (i.e., zero premiums). However, I’ve been informed that I am required (as a retired federal employee) to pay Part A deductibles, co-pays, and co-insurance all of which are expensive. Is that correct?
3. My wife will turn 65 next year, and will not draw Social Security. However, I still work for the federal gov’t and she is on my FEHB plan. Is she required to enroll in Medicare Parts A & B? If not, how does she opt out.
Mr. Marcayda,
Social Security and Medicare each have their own eligibility requirements. At 62 (MRA), Social Security becomes available but is permanently reduced. Your Full Retirement Age (FRA) is based on your birthday, and is likely 66/67, at which point you receive your full Social Security benefit. Medicare becomes available at age 65, with the enrollment period starting 3 months before your birthday.
Taking Social Security does not mean that you need to take Medicare Part B. You’ll still enroll in Part A, and if Social Security payroll taxes have been deducted from your pay for at least 10 years, Part A hospital insurance is free. Part B is optional to federal annuitants that maintain FEHB coverage into retirement.
Medicare only covers roughly 80% of medical costs. The additional expenses may be covered by Medicare Supplement policies. FEHB offers carriers that have great “supplemental” policies, such as the ones from BCBS. They offer incentives to help with copays and other expenses a federal retiree may encounter.
Your wife should still enroll in part A if she has had payroll deductions towards it as Part A will likely not cost her anything. If she is covered by FEHB while you’re working, she does not have to enroll in Part B. Once you are retired, FEHB may remain available to you, in which case you do not need Medicare. However, you should consider whether your FEHB coverage will suffice for your medical needs both now and in the future. If you find that it does not and decide to take Part B in the future, you will have a 10% increase in Part B premiums for every year after 65 that you did not have it. FEHB policies count as “Medicare comparable” health insurance while you’re employed as a fed-FEHB does not count as comparable as a retired fed, as related to the 10% increases.
@@TheFedCorner Thank you very much. But just to be clear on Medicare Part A: I understand that it is "free" because I've paid into it through payroll taxes, etc. However, my concerns are the Deductibles, Co-Pay, Co-Insurance. Are you indicating that "free" means ZERO premiums, ZERO deductibles, ZERO Co-Pays, ZERO Co-Insurance?
@@hectormarcayda8608 Part A coverage is free since you've paid over time, but the healthcare itself is not. Part A will cover parts of your hospitalization expenses, but there may be deductibles and coinsurance costs.That's where supplemental policies through FEHB or others would come in.
@@TheFedCorner Thank you very much. That's what I thought and which is very concerning and why it is important to define terms (i.e., what does "Free" mean?). Essentially, I would be liable (Part A) for the deductibles, Co-Pays, etc., etc. IF I did not have additional coverage (FEHB, etc.).
What about the new plan for Postal retirees, to encourage them into Medicare?
More information is now out to help you decide. The penalty free sign up is a good thing. Depends on your age, health & etc. I like the idea of being about 100% covered should a major medical event happen & your facing huge bills to try & pay. You must weigh all possibilities that apply to you. Good luck 👍
Here is my scenario.. I retired as a fed employee last year at age 60 and took my fed health care plan with me and have my husband on the plan as well. He turns 65 this month and signed up for part A. He is still full time employed in the private sector. We are considering just keeping our current fed plan and not opting into Medicare B. We are both of good health at this time. I have him as survivor benefits in case I die first so he can keep our health care plan. What is the down side of doing this, other than a catastrophic illness which would max out our yearly deductible? Are there any other hidden risks?
This is a good question, and really hard to answer. As you know, you don't need Medicare Part B if you are eligible for FEHB in retirement. Other health insurance carriers wouldn't accept a 65+ year old, but FEHB programs do. With FEHB-only, there is always the risk of a carrier deciding that they are not going to cover a specific type of care. There is also the risk of their adjusting OOP amounts, limits, exclusions, etc. This can also be argued for Medicare as well, but I'd think less likely given how many members there are. We're doing a more comprehensive FEHB vs Medicare video for this upcoming open season, so make sure to tune in to hear more about stories from our clients and other relevant details!
@@TheFedCorner I would love to hear from clients who opted out of Medicare B! My health insurance carrier reassures me that the plan will operate basically the same way as if my husband is under 65 ( with some differences). I'll be following your page.
thanks for the information...it is still kind of confusing to me... I took a quick look at how much I would pay for Medicare B and D and it sounds almost like I am paying for FEHB for me and my wife...if I register for B and D will my wife be covered as well? or does she have to register herself?@@TheFedCorner
in my personal situation, I don't see paying for both FEHB and medicare B as an option... it sounds like a lot of money...
same here... will it be too bad to just stay with the FEHB coverage and opting out from medicare b? on the other hand< is it better to go with a< b< and d and drop fehb?
I have not heard of a "FEHB- medigap" policy. Where is that info?
Many plans, like BCBS, have policies within FEHB that are specifically designed to pair with Medicare. Medicare only covers around 80% of expenses, and these "Medi-gap" plans cover the rest. They are formally known as Medicare Supplement plans. FEHB plans offer full plans in retirement, and plans that act as the supplement, where Medicare is primary and the FEHB plan becomes secondary. You can ask a carrier directly for their Supplemental, or "Medigap", type of insurance plans.
@@TheFedCorner thanks for that info. I will check it out.
Check out Aetna Medicare Advantage PPO for feds during open season. It looks very interesting and is about $200/month less that Blue Cross Basic. I’ve had BC Basic for 20 years but seriously considering changing this open season.
So what happens when you have young children and or wife if you go on Medicare.
Only children of a certain age or that are under exception can continue on your health insurance. Your spouse can maintain FEHB as long as you didn't drop FEHB altogether when getting Medicare, and you elected a Survivor Benefit Pension at retirement. We'll be doing an updated FEHB v Medicare video this year near open season so stay tuned.
@@TheFedCorner thank you. Guess my premiums will remain the same.
Sorry, but about halfway through the video I gave up trying to focus over the _loud and unnecessary music._ It's a plague on RUclips informational videos. Why creators think it's necessary or even _beneficial_ is beyond me, though I'm sure some people like it. I'm subscribed to the channel, but if this is typical, that won't be for long.
Hi Mike, yes thank you for bringing this up. We didn't realize how loud it was until well after the publication, and have since adjusted volumes. Unfortunately some of our earlier videos may have the same issue. Will you let us know if you notice it happening again anywhere else so that we can investigate?
We’re planning to suspend FEHB when Medicare is a better deal on a yearly basis.
Sounds reasonable, just make sure that you understand how coverage works. Part B only covers around 80% of care, so you still need supplemental insurance. Some FEHB plans make good supplemental plans.
The annoying and loud background music is still there after two years! I couldn’t tolerate and quitted watching after one minute!!
Yes, RUclips does not allow adjusting the music volume once the video is uploaded. You'll notice newer videos have sound tracks much reduced. Our apologies.