When they retire they have several choices for health care, including staying in their original plan or switching to Medicare as their primary coverage and having an FEHB
Federal Employees Health Benefits Program
The Federal Employees Health Benefits Program is a system of "managed competition" through which employee health benefits are provided to civilian government employees and annuitants of the United States government. The government contributes 72% of the weighted average premium of all plans, not to exceed 75% of the premium for any one plan.
Full Answer
Do postal retirees have to switch to Medicare?
About 20% of postal retirees do not sign up for Medicare, preferring their current federal plan. Under this legislation, they would have to switch to Medicare, but they would keep a new Postal Service version of the FEHB plan as secondary coverage.
Should the postal service integrate Medicare with federal employee health benefits?
• Integrating the Postal Service’s Federal Employee Health Benefits (FEHB) plans with Medicare would benefit both USPS and its retirees. When postal employees retire and are enrolled in Medicare, their Medicare coverage becomes their primary health coverage and their FEHB plans become their secondary health coverage.
Are FEHB plans better for postal retirees with Medicare?
In addition, the FEHB plans that cater to retirees with Medicare as primary coverage generally have lower premiums than those that don’t offer such incentives. About 75% of current Medicare-eligible retirees are enrolled in Parts A and B and according to the American Postal Workers Union, 80% of eligible postal retirees are, too.
Does retiree insurance work with Medicare?
Your retiree insurance can work with Medicare. It’s best to enroll in Part A and Part B during your Initial Enrollment Period to avoid penalties. In general, Medicare will be your primary insurance, and your retiree insurance will be secondary. What are the costs and coverage of retiree insurance?
Do retired postal workers need Medicare?
Law requires postal retirees to enroll in Medicare. The landmark Postal Service Reform Act (H.R. 3076) Congress passed this week ends the mandate that the Postal Service pre-fund its retiree health benefit costs and requires postal workers to enroll in Medicare Parts A and B when they turn 65.
Do FERS retirees get Medicare?
Retired federal employees are entitled to Medicare under the same rules as all other retirees.
Do I need both FEHB and Medicare?
Answer #1 —You don't need both. However, to quote OPM “generally, plans under the FEHB program help pay for the same kinds of expenses as Medicare.” In many cases FEHB proves to be more comprehensive, often including emergency care outside the U.S., as well as dental and vision, which Medicare does not cover.
Do postal workers get health insurance when they retire?
Similar to most other federal agencies, the USPS offers health care benefits to its employees, retirees, and their dependents through the Federal Employees Health Benefits Program (FEHB), which is administered by the Office of Personnel Management (OPM).
Is Medicare Advantage better than FEHB?
Most MA plans are comparable to FEHB plans in hospital and medical benefits, but the prescription drug benefits will not be as good as in the FEHB program because the plans have a “coverage gap” where you are responsible for all or most drug costs until you reach a catastrophic limit.
Do most federal retirees enroll in Medicare Part B?
About 70% of federal retirees enroll in Part B, which means paying two premiums and in essence two duplicative insurance programs. A portion of the retirees that join Part B might do so as a hedge against the elimination of FEHB retiree benefits.
What happens to my FEHB when I turn 65?
Your FEHB coverage will continue whether or not you enroll in Medicare. If you can get premium-free Part A coverage, we advise you to enroll in it. Most Federal employees and annuitants are entitled to Medicare Part A at age 65 without cost.
Who pays first FEHB or Medicare?
When FEHB and Medicare Coordinate Benefits, Which One Pays Benefits First? Medicare law and regulations determine whether Medicare or FEHB is primary (that is, pays benefits first).
Do federal retirees need Medicare Part B FEHB?
Unlike most people with retiree coverage, who must enroll in Medicare Part A and Part B when they're first eligible, enrollment in Medicare is not mandatory if you have federal retiree coverage through the Federal Employee Health Benefits Program (FEHB).
What insurance do retired postal workers have?
The Federal Employees Dental and Vision Insurance Program (FEDVIP) is available to eligible Federal and Postal employees, retirees, and their eligible family members on an enrollee-pay-all basis.
What benefits do retired postal workers get?
Any postal worker hired after 1984 takes USPS retirement under the Federal Employment Retirement System (FERS). FERS pays less than CSRS, but postal workers are eligible for Social Security and Thrift Savings Plan (TSP) payments. Postal workers pay into FERS and Social Security each pay period.
Do postal workers pay Medicare?
Employees covered for Medicare only contribute 1.45 percent of their gross wages with the Postal Service contributing a like amount. The Medicare rate is scheduled to remain the same through 1999.
How does Medicare work with my job-based health insurance when I stop working?
Once you stop working, Medicare will pay first and any retiree coverage or supplemental coverage that works with Medicare will pay second.
When & how do I sign up for Medicare?
You can sign up anytime while you (or your spouse) are still working and you have health insurance through that employer. You also have 8 months after you (or your spouse) stop working to sign up.
Do I need to get Medicare drug coverage (Part D)?
Prescription drug coverage that provides the same value to Medicare Part D. It could include drug coverage from a current or former employer or union, TRICARE, Indian Health Service, VA, or individual health insurance coverage.
How Does Medicare Work with Retiree Insurance?
In general, if you have Medicare and retiree insurance, Medicare will pay your health care bills first. In this case, your group coverage is your secondary insurance. Thus, it acts similar to a Medicare Supplement policy. To get full benefits from your retiree insurance, you’ll want to enroll in Part A and Part B when you become eligible.
How to Get Answers to Retirement Insurance and Medicare Questions
We know that navigating coverage options can be confusing. That’s where we come in. We’re here to help you understand your options from the inside out. As a result, you’ll feel better prepared when it’s time for you to choose the best combination of coverage.
Why does the Postal Service want to put all retirees under Medicare?
The Postal Service wants to put all retirees under Medicare in order to save billions of dollars. When this is considered by Congress, look out for a similar change proposed for the remainder of the federal workforce.
Is the postal service a private company?
The Postal Service is a large organization. It is unique in that it acts both as a federal agency and as a private company. It resembles the rest of the federal workforce in many ways but unions negotiate on many topics that are out of reach of most federal employee unions.
Does the postal service have Medicare?
The Postal Service wants to integrate Medicare into our health benefits for retirees. We are the second largest payer into Medicare behind the U.S. government, and we don’t get to take full advantage of its offerings [such as requiring retirees to use Medicare as their primary insurance].
Do federal retirees have to take part B?
The way it stands now most federal retirees take part b at 65 and switch to the lowest cost fehb plan. The employee and employer still pay the carriers a full premium for the fehb plan even though it is now secondary at the point in life where most people start having more health problems.
Can a doctor take patients with Medicare A-B?
Doctors are NOT hesitant to take patients who have BOTH Medicare A-B and FEHBP because they can charge up to the Medicare Limiting Charge of 115% for these patients. The extra 15% will be paid by your FEHBP fee-for-service plan. You will pay nothing out-of-pocket.
Do you have to have Medicare at 65?
At 65 she is required to have Medicare as her primary helth care plan and switch her other health care plan to a supplemental plan at a higher cost. Keep this in mind if you keep your insurance and also take Medicare your health insurance cost is going to be higher, quite a bit higher.
Do you pay more for FEHB insurance after retirement?
And, with the exception of those who receive an extra agency contribution to their FEHB premiums, you do not pay any more as a retiree than you do as a current federal employee although you will pay for your insurance out of after-tax dollars. (See Retirement Myths: FEHB Premium Increases After Retirement)
What happens if you lose your job based insurance?
When you lose job-based insurance you may be offered COBRA continuation coverage. If you decide not to take COBRA coverage, you can enroll in a Marketplace plan instead. If you’ve already started COBRA coverage, you have different options.
Can I get health insurance if I retired?
If you recently retired and aren’t eligible for Medicare yet, you may be able to get health insurance through the Health Insurance Marketplace®. While retiring from a job alone doesn’t qualify you for a Special Enrollment Period, losing health insurance does. If you lost health insurance when you retired, you have 60 days to enroll in ...
Can I get Marketplace health insurance if I drop my retirement plan?
If you have retiree health insurance but want to buy a Marketplace plan instead, you can. But you won’t be able to get premium tax credits and other savings in the Marketplace. If you voluntarily drop your retiree health coverage, you don’t qualify for a Special Enrollment Period.
What happens if you don't enroll in Medicare?
As a federal retiree, if you don’t enroll in Medicare, your FEHB plan will act as your primary insurer and won’t pay less because you qualify for Medicare.
How long before you can change your FEHB coverage?
You may want to make changes to your FEHB coverage when you are nearing Medicare eligibility, and will have the option to do this starting 30 days before you qualify for Medicare. Changes can only be made once during this window. You can also wait until FEHB Open Season to change your coverage. Back to top.
Can you suspend your Medicare Advantage plan?
You can suspend your enrollment in FEHB to enroll in Medicare Advantage or other eligible coverage by contacting your agency’s retirement system, and providing them documentation that you enrolled . If you do this , you’ll be allowed to leave your Medicare Advantage plan and return to FEHB.
Is FEHB covered by Medicare?
While FEHB plans cover most of the same types of expenses that Medicare covers, FEHB plans’ coverage may be more limited than Medicare Part B when it comes to orthopedic and prosthetic devices , durable medical equipment, home healthcare, medical supplies, and chiropractic care.
Can you pay Medicare excess?
Some states don’t allow excess Medicare charges. If you live in one of these states – or you see a doctor in any state that accepts Medicare’s rate as full payment – you’d only have to pay the difference between what Medicare and your FEHB plan pay and Medicare’s rate.
Can you reenroll in FEHB after the Advantage plan ends?
You can re-enroll in FEHB if this other coverage ends through no fault of your own.
Is FEHB more generous than Medicare?
Although FEHB coverage can be more generous overall than Medicare Advantage or Original Medicare, having additional coverage may not be helpful if you can’t afford its premiums. If you qualify for the Medicare Savings Program (MSP) or Medicaid, you may find your healthcare costs are lower overall if you don’t use FEHB.
Do you have to take Part B if you are retired?
You are in a position that many retirees would kill for, but you still have decisions to make. While most retirees must take Part B once they or their spouse are no longer actively employed, such is not the case for federal retirees. You basically have three choices, all with pros and cons.
Is FEHB a Medigap?
This will be more expensive because you will be paying two sets of premiums, but your FEHB plan will now function as a Medigap plan for both your hospital and doctor bills, and cover your drugs as it always did.
Medicare As An Automatic
In some cases, Medicare is an automatic. For instance, Medicare.gov says that if you receive benefits via either Social Security or the Railroad Retirement Board (RRB) for more than four months before turning 65, you automatically receive Medicare Part A (hospital insurance) and Part B (medical insurance).
Choosing the Private Insurance Option
If none of these situations apply to you and you want to use private insurance instead, it’s important to understand that there is only a seven-month window in which you can apply for Medicare benefits, according to Medicare.gov.
Using Medicare With Other Insurances
You can also have both Medicare and private insurance to help cover your health care expenses. In situations where there are two insurances, one is deemed the “primary payer” and pays the claims first. The other becomes known as the “secondary payer” and only applies if there are expenses not covered by the primary policy.