Federal Employee and medicare?

[GypsySooners]

Hi everyone and thanks in advance for any help.

I just turned 64 and have begun trying to figure out medicare.

I retired from the Postal Service two years ago.

I'm healthy to a fault and had a perfect checkup recently, the first in four years.

I am currently insured by FEHP, BCBS, Standard Option. My portion of the policy is about $160 a month.

I understand that I must pay $99 a month for Medicare Part B when I turn 65, is that correct?

I know that my great health could change at any time but I just can't see paying $3100 a year for medical that I probably won't use. Doesn't Medicare Part A cover anything major? Would I be better off just saving my money and paying the difference if something did happen?

I need help! I'm so confused by all of this!

Thanks again!

[zcaveman]

Usually when you go on Medicare, Medicare becomes your primary and your other insurance becomes your secondary carrier. They know you are turning 65 and will change your rate accordingly. I would call FEHP, BCBS, Standard Option and verify this or at least find out what will happen.

[animal lover]

This is a good question. I will be in same predicament in a few years. The FEHB program mentioned a few years ago that they might come up with a reduced plan for medicare eligible enrollees but so far I haven't seen anything. Check with Medicare and find out if you do not sign up for Part B right now, can you get it later with no penalty if anything changes with your current plan.

[RichieB]

Usually when you go on Medicare, Medicare becomes your primary and your other insurance becomes your secondary carrier. They know you are turning 65 and will change your rate accordingly. I would call FEHP, BCBS, Standard Option and verify this or at least find out what will happen.

"Z" has got this correct.

In addition, Medicare Part A covers hospital expenses, while Part B covers doctor's charges.

If you went on Soc Sec prior to age 65, you will go on Medicare automaticallyy at age 65. If that is not the case, you must apply for Medicare about 3 months prior to you 65th birthday. My company benefits dept is already "prepping" me for this.

I will be right behind you, since I turn 65 in May of next year. :sigh:

Where did all the time go ? :ohdear: :shocked:

[Madelaine Amee]

AARP might also be able to help with your question. You need some really good professional advice before you make up your mind NOT to take Medicare. It's probably the best insurance you can buy!

[skyguy79]

Usually when you go on Medicare, Medicare becomes your primary and your other insurance becomes your secondary carrier. They know you are turning 65 and will change your rate accordingly. I would call FEHP, BCBS, Standard Option and verify this or at least find out what will happen.I just started on Medicare this month and what you've explained (and other posters) sounds exactly like what I'm experiencing. I worked for the State of New York and where $100 was deducted from my SS payment, $99.90 was credited to my retirement payment. No changes in my coverage except for as you describe... Medicare is primary then my NYSHIP/Empire Plan takes care of the rest. I don't know why there is a $0.10 difference between the Fed charge and the State credit, but I ain't about to complain over the dime it's costing me for the coverage.

[RichieB]

AARP might also be able to help with your question. You need some really good professional advice before you make up your mind NOT to take Medicare. It's probably the best insurance you can buy!

:agree:

AARP can pbe helpful here, and yes, you should make sure about your decision on Medicare.

[RichieB]

I don't know why there is a $0.10 difference between the Fed charge and the State credit, but I ain't about to complain over the dime it's costing me the coverage.

I wouldn't either......... :smiley:

[skyguy79]

I wouldn't either......... :smiley:...but then, if it was 20 cents... :p

[RichieB]

...but then, if it was 20 cents... :p

Then, go for it - ABSOLUTELY ! :22yikes: :a20:

[campy]

Without a crystal ball no one knows whether its best to take medicare right away or pay the penalty when you pick it up later during open season. As a federal employee on medicare, medicare is the primary and BCBS is secondary. Between the two you probably wouldn't have any co-payments. If you are a NARFE member, you could always speak with them, however, no one will be able to tell you what would be most cost effective for you.

[KayakerNC]

Usually when you go on Medicare, Medicare becomes your primary and your other insurance becomes your secondary carrier. They know you are turning 65 and will change your rate accordingly. I would call FEHP, BCBS, Standard Option and verify this or at least find out what will happen.

Nope, no rate change from BCBS when you go on Medicare. The Fed policies have to lump everyone in the large pool, so no separate pool for Medicare and non-Medicare.
The OP can however change to a lower cost insurance, like the BCBS Basic plan, if he wants to lower his monthly costs.
Since nobody knows what the future holds, I would go with the Medicare A and B. It is, after all, insurance against really bad things happening that could wipe out you and your family. And that 10 pct yearly penalty is a real deal breaker if things go south.
Even if you stay with the BCBS Standard and Medicare, you have a whole lot of coverage for a LOT less money than retirees without the benefit of FEHB plans.
And yes, I'm a retired Fed with BCBS and Medicare. :beer3:

[zcaveman]

Nope, no rate change from BCBS when you go on Medicare. The Fed policies have to lump everyone in the large pool, so no separate pool for Medicare and non-Medicare.
The OP can however change to a lower cost insurance, like the BCBS Basic plan, if he wants to lower his monthly costs.
Since nobody knows what the future holds, I would go with the Medicare A and B. It is, after all, insurance against really bad things happening that could wipe out you and your family. And that 10 pct yearly penalty is a real deal breaker if things go south.
Even if you stay with the BCBS Standard and Medicare, you have a whole lot of coverage for a LOT less money than retirees without the benefit of FEHB plans.
And yes, I'm a retired Fed with BCBS and Medicare. :beer3:

Which is why I said to call FEHP, BCBS, Standard Option and verify this or at least find out what will happen. Not all plans are the same.

[JeffAVEWS]

If you don't take the Medicare and later decide to get it it's will cost you more.
"Q. What Happens If I Don't Take Part B as Soon as I'm Eligible?
A. 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."

I would get the part B and hope that FEHB gives you an option for a "Supplemental Pan" at a later date. I'm Military so I get Tricare as a supplemental, but under Tricare you have to take the part B coverage as primary.

[aljetmet]

Sounds like you may want to gamble on your health which is not such a great idea but here is something to try.

If you can opt out of your current plan and get back into it later that might suit you well.

Then I would sign up for a Medicare Advantage plan. You can get one through AARP and its $0 out of pocket/month. The best thing is that it reduces your costs if you do need hospital or doctor services. It also has a drug plan.

Beware though, you can use only those Doctors and hospitals that are in the plan.

You can check out the Drs and hospitals in your area before committing to anything.

Now as you get older and want say more choices in Drs and hosiptals you may be able to opt back into your current plans if that is possible.

You just need to do a little homework.

Good luck!

[Bavarian]

According to what I have read in NARFE magazine, the only advantage to taking Medicare B is that it would cover copays. Per NARFE, FEHP is considered good enough not to require fee if one adds Medicare B later. Medicare A is free and automatic. At least under CSRS.

Don't listen to or have any dealings with AARP, they do not like retired Feds. Join NARFE if you haven't already. Awhile back, I wrote to AARP asking them to join the fight against GPO and WPE, they repiled nastily that Feds make too much in retirement. I dropped them and have never gone back.

[bovelsky]

here is a link that might help. http://www.myfederalretirement.com/public/247.cfm

[buggyone]

As stated, Medicare Part A is free. Part B is around $110 per month. Your FEHB Blue Cross costs around $110 per month. The Blue Cross and Part B do the same things so Part B is redundant and not necessary.

With FEHB, you cannot be dropped from your health insurance for any reason except for non-payment.

[Geewiz]

Contact your personnel specialist at your old office...I will be in the same situation in 5 years....assuming we are not so demonized that the benefits we worked and paid in for don't disappear. I know that folks who worked in private industry have lost much/most of promised benefits.

Still, Feds accepted lower pay and bonuses in exchange for job security and promised benefits. For myself, I turned down several high 6 figure salary offers for security (sorry - I'm systems literate and kinda sorta gifted at figuring out systems scams and this combination offers high compensation...my half-brother is brilliant at options and he used to laugh at my salary - in our economy we award achievement...for better or worse).

Feds have nothing to apologize for....in good times they are fools and in bad times they are greedy. Ignore the critics.

Don't count on anyone to advise you except for a fed benefit specialist and even then...double check.

[784caroline]

Nope, no rate change from BCBS when you go on Medicare. The Fed policies have to lump everyone in the large pool, so no separate pool for Medicare and non-Medicare.
The OP can however change to a lower cost insurance, like the BCBS Basic plan, if he wants to lower his monthly costs.
Since nobody knows what the future holds, I would go with the Medicare A and B. It is, after all, insurance against really bad things happening that could wipe out you and your family. And that 10 pct yearly penalty is a real deal breaker if things go south.
Even if you stay with the BCBS Standard and Medicare, you have a whole lot of coverage for a LOT less money than retirees without the benefit of FEHB plans.
And yes, I'm a retired Fed with BCBS and Medicare. :beer3:

QUESTION: If I switch from FEHB Standard to Basic...how would that effect my prescription plan...the switch would be dramatic for prescriptions!

[batman911]

I believe Medicare Part B cost is tied to your level of income. You will be penalized if you do not start it when you are 65.

[Geewiz]

Don't downgrade coverage...ever...you'll never get it back.

[KayakerNC]

QUESTION: If I switch from FEHB Standard to Basic...how would that effect my prescription plan...the switch would be dramatic for prescriptions!
BCBS Basic does not include the Mail Service Pharmacy.
With mail service, many 90-day supplies cost the same as a 30 or 60-day supply, depending on the medication.
Depending on your usage, it may or may not make a big difference.

[Bavarian]

NARFE has said often, do not take the optional Part B, we have better coverage under FEHP.

[KayakerNC]

NARFE has said often, do not take the optional Part B, we have better coverage under FEHP.

Really? Where/When did they say that?:shrug:
(Highlights are mine)
National Active and Retired Federal Employees Association (NARFE) (http://www.narfe.org/departments/home/articles.cfm?ID=2940)

For example, if you had a Blue Cross/Blue Shield (BC/BS) plan along with Medicare Part A and Part B, you would have little, if any, out-of-pocket expenses. BC/BS would waive your calendar-year deductibles, your co-pays and your coinsurance amounts. You would have to continue paying your full BC/BS premiums and full Medicare Part B premiums, which are $99.90 per month in 2012. You will need to look at your medical expenses and see whether you will have more than $1,200 out-of-pocket expenses each year ($99.90 x 12 months). If you do, you probably would want to pick up Part B.

You are not required to enroll in Part B immediately – you may enroll during any General Enrollment Period, which is held January-March of each year. HOWEVER, if you don’t pick up Part B at your first enrollment opportunity, you will be charged a 10 percent penalty for each 12 months that you aren’t enrolled. It may make financial sense to wait a few years until you enroll. However, if you wait too many years, you might not be able to afford it.

[2BNTV]

Original posts is 4/12/12 so the original poster is past their enrollment period.

I believe it is an eight month window to sign-up for Part B as part A, you are automatically enrolled in at 65. It sounds like the OP should get a Medicare Advantage Plan as they indicate they are healthy. To do without insurance is pure folly as one never knows when they might get sick and need it.

It seems like this person would be duplicating their coverage and doesn't sound cost effective. However, I would check to see if their federal plan would pick-up cost that are not covered my medicare and see if it worth keeping.

[dolpterry]

Medicare part A is free, part B is about 99 per month. If you drop BCBS then you will be without any drug coverage unless you add part D. You can go to a advantage plan that includes all but will have to drop ferderal BCBS. Or you can keep regular medicare as your primary and BCBS as secondary but it will not go down.

[Bavarian]

As stated, Medicare Part A is free. Part B is around $110 per month. Your FEHB Blue Cross costs around $110 per month. The Blue Cross and Part B do the same things so Part B is redundant and not necessary.

With FEHB, you cannot be dropped from your health insurance for any reason except for non-payment.

Where do you find $110/mo for FEHB BCBS Standard option 105? I pay $430 a month for my wife and I. Must buy family plan as no Self +1 like FEDIV.

Were you Postal Employee? I know their's is cheaper than us DOD retirees?

[2BNTV]

In CT, when I first started to pay part B it was $115 and now is $105. Plus I pay an additional $20 to my AARP Medicare Complete carrier. It is worth it because it includes drug coverage and I get to see my regular doctors.

[KayakerNC]

Were you Postal Employee? I know their's is cheaper than us DOD retirees?

FEHB rates are the same for RETIRED DoD and USPS folks.

[HMLRHT1]

Postal employees pay the same as anyone else when they retire because they then fall under Federal Employees coverage rather than USPS coverage.