Medicare vs FEHB
 

I am retiring from the fed, for the final time, next month. I am making the Medicare decision. I am curious how many retired feds chose to keep their FEHB and decline Part B.

I plan on traveling quite a bit, so a Medicare Advantage plan isn’t in the picture. I am considering Blue Cross Standard and decline Part B ; or change to Blue Cross Basic and Medicare. Experiences? Comments?

That is exactly what I did. I have the Blue Cross standard plan, and I do not have Medicare Part B. In my case, the Medicare premiums would cost more than half of the Blue Cross $5,000 annual catastrophic limit. Since I can afford to pay the catastrophic limit, if necessary, it makes no sense to have Medicare. The Blue Cross plan is accepted almost everywhere. So far, I have saved thousands of dollars every year by not paying the Medicare premiums. Do the math.

I've seen numbers in the range of 15 to 20% go with FEHB only.


I assume you will have Medicare A.

As a provider, my patients seem to do better with Medicare Part A and keeping Federal Blue Cross...

Of course, YMMV...

Thanks for the three replies so far. Further clarification for my situation - Yes, I currently have BC/BS Standard option Self+1 and Medicare Part A. My wife is a few years younger and won't be eligible for Medicare for another 5 years.
Both of us very active and in good health.

At this point I plan on keeping the BC/BS Standard Option and Part A. But it appears the BC/BS Basic option and Part A/B may be significantly less expensive.

Standard Option - $608/month, $7300/year Catastrophic Limit $5000,year

Basic Option - $$410/month, $4,900/yr, + Part B $1728/year, minus BC/BS Reimbursement $800/year, Total $5,800/year, Catastrophic Limit $5,500/ year, with Part B.

With Basic save approximately $1,500/year in premium costs.

Granted with Basic, you MUST use preferred providers, but those seem to be numerous; even with Standard your reimbursement is reduced when you do not use a preferred provider. My understanding, if you use the Basic Option and Part B, you have greatly reduced out-of-pocket expenses. Is this correct? What am I missing/not considering?

Thanks for the three replies so far. Further clarification for my situation - Yes, I currently have BC/BS Standard option Self+1 and Medicare Part A. My wife is a few years younger and won't be eligible for Medicare for another 5 years.
Both of us very active and in good health.

At this point I plan on keeping the BC/BS Standard Option and Part A. But it appears the BC/BS Basic option and Part A/B may be significantly less expensive.

Standard Option - $608/month, $7300/year Catastrophic Limit $5000,year

Basic Option - $$410/month, $4,900/yr, + Part B $1728/year, minus BC/BS Reimbursement $800/year, Total $5,800/year, Catastrophic Limit $5,500/ year, with Part B.

With Basic save approximately $1,500/year in premium costs.

Granted with Basic, you MUST use preferred providers, but those seem to be numerous; even with Standard your reimbursement is reduced when you do not use a preferred provider. My understanding, if you use the Basic Option and Part B, you have greatly reduced out-of-pocket expenses. Is this correct? What am I missing/not considering?

Looking at your calculations, I’m assuming this does not apply to you; however, be sure you understand and, if applicable to you, factor in the IRMAA (income-related monthly adjustment amount) surcharge that is applied to Part B. Without going into detail about my personal financial situation, I will say the IRMAA was a critical factor in my recent decision to stay with BC/BS Standard and Medicare Part A only for at least the next two years. And, if you choose the BC/BS Standard + Part A option, be sure to factor in the Part B non-enrollment penalty that will apply should you opt to switch at a later time.

I agree with your plan. It wouldn't work for me because my Part B premium would be too high. You won't have any trouble finding preferred providers using the Blue Cross basic plan. The standard plan would not be worth the extra cost.

Geha
 

I'd suggest considering GEHA. Less expensive than BCBS and I have not paid a medical bill iin 6 years beyond my premium costs. And I don't have to worry about preferred providers, referrals, etc. FEHB considers Medicare primary. And I think other plans make payouts based on Medicare rates whether you choose to be covered or not. Also recommend you not give up FEHB. Once you do you can't get it back unless a FEHB qualified spouse is involved.