Working federal employees that dont retire at 65 are still eligible for Medicare. Certain retiring federal employees may want to consider joining Part B of Medicare. For example, individuals with a fee-for-service plan, mail handlers or those with Government Employee Health Association plans may strongly consider Part B coverage.
Should federal retirees enroll in Medicare?
- When should federal retirees enroll in Medicare and in which parts of Medicare?
- Is there a late enrollment penalty for Medicare and when does the penalty apply?
- Which is “primary” coverage – FEHB or Medicare?
Should federal employees enroll in Medicare?
There is a monthly premium for Part D coverage. Most Federal employees do not need to enroll in the Medicare drug program, since all Federal Employees Health Benefits Program plans will have prescription drug benefits that are at least equal to the standard Medicare prescription drug coverage.
How retirees can keep federal employee health benefits?
- After retirement, federal employees enjoy a monthly annuity and medical coverage.
- To qualify for coverage, you’ll need to meet minimum service requirements, including being covered as a federal employee for at least five years.
- Your spouse will receive coverage without the five-year rule.
Do government employees get Medicare?
employees not covered by an agreement or a Social Security equivalent public pension system. Except for workers specifically excluded by law, employees hired after March 31, 1986, also have Medicare protection. State and local governments may also get Medicare coverage for workers not covered by Social Security who
Do retired federal employees get Medicare?
Retired federal employees are entitled to Medicare under the same rules as all other retirees.
Are federal retirees automatically enrolled in Medicare?
Signing Up for Medicare If you are retired and receiving Social Security you will automatically be enrolled in Part A and B and should receive your Medicare card three months before your 65th birthday.
Do federal retirees have to take Medicare Part B?
You don't have to take Part B coverage if you don't want it, and your FEHB plan can't require you to take it. There are some advantages to enrolling in Part B: You must be enrolled in Parts A and B to join a Medicare Advantage plan.
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.
Can federal employees have both FEHB and Medicare?
The answer: yes! FEHB coverage is comparable to Medicare coverage. Therefore, beneficiaries in the federal program may delay joining a Part D plan; likewise, they're exempt from any Part D late enrollment penalties.
Should a federal employee take Medicare Part B?
How does federal health insurance work with Medicare Part B? You don't have to take Medicare Part B coverage if you don't want it, and your Federal Employee Health Benefits (FEHB) plan can't require you to take it.
Do I need Medicare Part D if I have FEHB?
You may choose to suspend your FEHB coverage to enroll in Medicare Advantage or other eligible coverage. You generally don't have to enroll in Medicare Part D if you have FEHB coverage.
Do you really need Medicare and FEHB as a federal employee?
2:0819:12Do You Really Need Medicare and FEHB as a Federal Employee?YouTubeStart of suggested clipEnd of suggested clipPart c and d. Really don't come into play first part d is prescription drugs which your federalMorePart c and d. Really don't come into play first part d is prescription drugs which your federal health plan already covers what part d part d would cover. And you're not gonna need a supplement.
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.
How Medicare works with FEHB plans?
Since you are retired but covered under your working spouse's policy, your spouse's policy is your primary coverage. Medicare will pay secondary benefits and your FEHB plan will pay third.
Is Medicare primary or secondary to FEHB?
primary payerGenerally, if you have Medicare and you (1) are age 65 or older and (2) are not employed in the federal service, Medicare is the primary payer of your health benefits expenses, and your FEHB plan is the secondary payer.
What is an individual retirement account?
An individual retirement account allows after-tax contributions of earned income below a certain level. Investment growth and future withdrawals are tax free.
What are the concerns of people who are within 10 to 20 years of their anticipated retirement date?
One major concern facing individuals who are within 10 to 20 years of their anticipated retirement date is with respect to incurring potentially large medical expenses during their retirement years. Their concerns about potentially large medical bills are certainly legitimate. The cost of health care is one expense item in an individual’s budget that dramatically increases during the retirement years as the individual ages.
How much is Medicare tax?
While in federal service, every federal employee pays the Medicare Hospital Insurance Tax (HIT) payroll tax, equal to 1.45 percent of an employee’s salary (and matched by the employee’s agency). Assuming an employee has paid the Medicare payroll tax for at least 10 years, the employee or annuitant (if retired) becomes eligible to enroll in Medicare Part A (hospital insurance) at age 65. Once enrolled in Part A, there is no premium cost for Part A. Being eligible for Medicare Part A makes the employee automatically eligible to enroll in the other parts of Medicare, which includes Medicare Part B (Medical Insurance), Medicare Part C (Medicare Advantage) and Medicare Part D (Prescription Drug Program). Any individual eligible for Medicare cannot be denied coverage in Medicare for pre-existing conditions.
What is the eligibility for Tricare?
Those federal employees who are military retirees, either for active duty or for reserve duty, are eligible to enroll in TriCare, which is the group health insurance plan covering active-duty members of the uniformed service and retirees of the uniformed services. There are some TriCare plans in which a military retiree must pay a minimum monthly premium. But once a military retiree becomes age 65, he or she needs to enroll in the “original” Medicare in order to be covered by “TriCare-for-Life” in which the enrollee pays $0 premium. This is because at age 65, the “original” Medicare is considered “primary” coverage for a military retiree and TriCare-for-Life is considered “secondary” coverage for a military retiree.
How much does the federal government pay for FEHB?
Fortunately for federal employees who are enrolled in the Federal Employees Health Benefits ( FEHB) program (in which the federal government pays on average 72 to 75 percent FEHB program premiums) employees are eligible to keep FEHB program coverage into and throughout their retirement years.
What is 401(k) account?
A 401k is a retirement-savings account that allows an employee to divert a portion of their salary into long-term investments and provides special tax benefits.
Does Medicare work for retirees?
Medicare choices for retirees have changed immensely over the past 20 years. Among other things, it is important for federal employees and annuitants to understand how Medicare coordinates with the FEHB program. If an annuitant makes the right choices with respect to choosing the right FEHB plan given their specific needs and makes the right Medicare enrollment choices, then it is likely that the annuitant’s out-of-pocket medical expenses will be minimized during the annuitant’s retirement years.
What is a Medicare leave period?
A period of time when you can join or leave a Medicare-approved plan.
How long can you join a health insurance plan?
You can join a plan anytime while you have job-based health insurance, and up to 2 months after you lose that insurance.
What happens if you miss the 8 month special enrollment period?
If you miss this 8-month Special Enrollment Period, you’ll have to wait to sign up and go months without coverage. You might also pay a monthly penalty for as long as you have Part B. The penalty goes up the longer you wait to sign up.
When does the 8 month special enrollment period start?
Your 8-month Special Enrollment Period starts when you stop working, even if you choose COBRA or other coverage that’s not Medicare.
Do you have to tell Medicare if you have non-Medicare coverage?
Each year your plan must tell you if your non-Medicare drug coverage is creditable coverage. Keep this information — you may need it when you’re ready to join a Medicare drug plan. (Don’t send this information to Medicare.)
Does Cobra end with Medicare?
Your COBRA coverage will probably end when you sign up for Medicare. (If you get Medicare because you have End-Stage Renal Disease and your COBRA coverage continues, it will pay first.)
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 a CSRS retiree can have Medicare premiums withheld from their annuity payment?
If you are eligible for Medicare and not eligible for Social Security, you can have Medicare premiums withheld from your annuity payments. OPM must receive a request for the withholding from the Centers for Medicare and Medicaid Services. They cannot withhold premiums based on your direct request or even one from the Social Security Administration. The request must come from the Centers for Medicare and Medicaid Services (CMS) to withhold Medicare premium s from annuity payments.
How to withdraw from Medicare Part B After Signing Up?
Once you withdraw from Medicare B you would have to notify your FEHB provider, Blue Cross Blue Shield in your case , immediately because they would revert back to primary provider for medical services. To cancel Medicare Part B coverage you will have to use form CMS-1763. This form isn’t available online and you must contact your Social Security Administration office to complete the form. They will discuss the consequences of canceling your coverage, including how penalties are accessed, and process the form for you over the phone. The Social Security FAQ titled How do I terminate my enrollment with Medicare Part B when I have other health insurance explains the process in more detail. Typically your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it.
How is Medicare Part B premium determined?
Medicare Part B premiums are determined by your Modified Adjusted Gross Income (MAGI). The more you earn the higher your Part B premium. For most beneficiaries, the government pays a substantial portion—about 75 percent—of the Part B premium, and the beneficiary pays the remaining 25 percent.
How much does Medicare cost a month?
This is referred to as "premium-free Part A." If you must buy Part A, it will cost you up to $411 each month.
What is Medicare Part A and B?
Medicare Part A, B, C and D. The Original Medicare Plan (Medicare Part A & B) is available everywhere in the United States. It is the way everyone used to get Medicare benefits and is the way most people get their Medicare Part A and Part B benefits now. You may go to any doctor, specialist, or hospital that accepts Medicare.
How to contact Medicare Advantage?
To learn more about enrolling in a Medicare Advantage plan, contact Medicare at 1-800-MEDICARE (1-800-633-4227) or at www.medicare.gov. Part D (Medicare prescription drug coverage).
How many parts does Medicare have?
Medicare has four parts: Part A (Hospital Insurance). Most people do not have to pay for Part A. If you or your spouse worked for at least 10 years in Medicare-covered employment, you should be able to qualify for premium-free Part A insurance.
How much is the penalty for not enrolling in Part B?
Because there is a 10 percent per year premium penalty for not enrolling in Part B within a few months of the deadline, annuitants are under great pressure to make a decision and about 70 percent decide to enroll. It can be surmised that this is usually an “everybody does it” rather than well-calculated decision.
Which is better, FEHB or MA?
In particular, FEHB plans have better catastrophic cost protection than MA plans, which operated (and mostly still operate) under a clumsy system with separate catastrophic protection limits for medical and drug costs that taken together are in almost all cases several thousand dollars a year higher than the protection limits in FEHB plans for self only enrollments.
Can you enroll in both FEHB and Parts A and B?
Even with the additional wraparound benefits, it just didn’t make sense to enroll simultaneously in two duplicative insurance plans, particularly when one of them is a top-notch system with many strengths not found in the original Medicare, notably catastrophic expense protection and drug coverage.
Does Medicare Part B pay more than the standard premium?
Some of the Medicare Part B rebates will pay slightly more than the standard Part B premium, but none come close to matching the income- tested premium. Every family’s situation is unique, but for those subject to these higher premiums, the case for enrolling in Part B is far weaker under any of the four strategies.
Does Part B pay off?
It now appears that the “political insurance” of enrolling in Part B has paid off, not by preventing some disastrous change, but by finally adding a benefit change that makes enrolling in Part B a clearly winning financial decision for many — provided, of course, that you are willing to join one of these Kaiser, United, or Aetna plans.
Is FEHB only for Medicare?
The situation has changed radically, however, with the introduction of the Pay Only One (FEHB only) Premium Strategy starting last year. The key to these arrangements is the coupling of premium rebates with the unusually generous Medicare Advantage plans offered by Kaiser and United only to federal annuitants. An important part of the best of these offerings is the payment of all or most of the Part B premium. The FEHB plan now serves as a shell through which the new and unusually generous MA plan is made available for “free.”
Can you have both FEHB and Medicare?
If you have both an FEHB plan and Medicare, your benefits are coordinated so that you don’t have to file claims yourself. Depending on your plan, having both types of coverage may combine to pay almost all of your medical expenses. Some FEHB plans waive their own deductibles and copays for services that are also covered by Part B.
Does Medicare pay for home health?
Medicare may pay for some services that your FEHB plan doesn’t cover, such as home health care, some medical equipment and supplies, and orthopedic or prosthetic devices.
Can you waive FEHB copays?
Some FEHB plans waive their own deductibles and copays for services that are also covered by Part B. If you don’t sign up for Part B when you retire, but need to do so at some future date — for example, if you lose FEHBP coverage or it becomes too expensive to maintain — you would be liable for Part B late penalties.
Key Takeaways
Federal workers enrolled in the Federal Employees Health Benefits Program (FEHBP) may want to delay taking Medicare Part B if you're still working past age 65. Most federal employees and retirees enrolled in FEHBP are not required to enroll into Medicare Part D since all FEHB plans offer prescription drug coverage as good as Medicare’s drug coverage. Activity duty and retired military personnel and veterans also have special considerations for how Medicare will work with TRICARE, TRICARE for Life, and veterans' health coverage..
What is the FICA Tax? And how does it relate to Medicare Part A?
The Federal Insurance Contributions Act or FICA payroll tax helps you earn credits toward Social Security, and helps to fund Medicare Part A and Social Security. Prior to 1983, federal government employees were exempt from contributing toward the Part A, or hospital insurance portion, of FICA.
Medicare & the Federal Employees Health Benefits Program (FEHBP)
Most federal employees participate in the Federal Employees Health Benefits Program (FEHBP), a type of federal health insurance available to non-military, federal government employees and retirees. FEHBP is administered through the Office of Personnel Management (OPM).
Expert Help to Understand Medicare Plan Options
Did you know that Medicare isn’t free, which means you need to consider plan coverage and prices before you enroll? Or that if you don’t enroll on time during your initial enrollment period, you could face a penalty? Navigating your Medicare selection needs and priorities may feel overwhelming.
How does Medicare work with service benefit plan?
Combine your coverage to get more. Together, the Service Benefit Plan and Medicare can protect you from the high cost of medical care . Medicare works best with our coverage when Medicare Part A and Part B are your primary coverage. That means Medicare pays for your service first, and then we pay our portion.
What is Medicare for seniors?
What's Medicare? Medicare is a federal health insurance program for people age 65 or older, people under 65 who have certain disabilities and people of any age who have End-Stage Renal Disease. It has four parts that cover different healthcare services.
How much does Medicare reimburse for a B plan?
Each member of a Basic Option plan who has Medicare Part A and Part B can get reimbursed up to $800 per year for paying their Medicare Part B premiums.
What happens if you don't enroll in Medicare?
If you don't enroll in Medicare, your FEHB plan will pay benefits in full. Your FEHB premiums will not reduce if you enroll in Medicare. You may change your enrollment to any option of any available plan at any time beginning on the 30th day before you become eligible for Medicare.
How to contact Medicare by phone?
Visit FEHB Program and Medicare on our website for further information. You can also find more information about Medicare by calling at 1-800 -MEDICARE (1-800-633-4227) or at www.medicare.gov (external link).
Does FEDVIP reduce if you turn 65?
Turning 65 has no bearing on your FEDVIP enrollment or eligibility. If you are turning 65 years old and you are employed, your coverage continues unreduced. For retirees, your coverage may/may not reduce based on your elections you made at retirement for your Basic and Optional coverages.
Does everyone pay for Medicare Part B?
Everyone is charged a premium for Medicare Part B coverage. The Social Security Administration can provide you with premium and benefit information. Review the information and decide if it makes sense for you to buy the Medicare Part B coverage.
Does Medicare pay for FEHB?
Note: If you are an annuitant, and either you or your covered spouse has Medicare, Medicare must pay benefits first. Your FEHB plan will pay benefits as the secondary carrier. Visit our website for more information about coordination of FEHB benefits with Medicare.
What is Medicare for people 65 years old?
Medicare is a Health Insurance Program for: People 65 years of age and older. Some people with disabilities under 65 years of age. People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant). Medicare has four parts:
How to contact Medicare for managed care?
To learn more about enrolling in a Medicare managed care plan, contact Medicare at 1-800-MEDICARE (1-800-633-4227) or at www.medicare.gov (external link). You can enroll in a Medicare Advantage plan to get your Medicare benefits.
What happens when a FEHB plan is the primary payer?
When the FEHB plan is the primary payer, the FEHB plan will process the claim first. If you enroll in Medicare Part D and we are the secondary payer, we will review claims for your prescription drug costs that are not covered by Medicare Part D and consider them for payment under the FEHB plan.
What is Medicare Advantage?
Medicare Advantage is the term used to describe the various health plan choices available to Medicare beneficiaries. If you are eligible for Medicare, you may choose to enroll in and get your Medicare benefits from a Medicare managed care plan. These are health care choices (like HMOs) in some areas of the country.
How to contact SSA about FEHB?
For more information about this extra help, visit SSA online at www.ssa.gov (external link), or call them at 1-800-772-1213 (TTY 1-800-325-0778) . The FEHB health plan brochures explain how they coordinate benefits with Medicare, depending on the type of Medicare managed care plan you have.
What is the original Medicare plan?
It is the way everyone used to get Medicare benefits and is the way most people get their Medicare Part A and Part B benefits now. You may go to any doctor, specialist, or hospital that accepts Medicare. The Original Medicare Plan pays its share and you pay your share.
How many parts does Medicare have?
Medicare has four parts: Part A (Hospital Insurance). Most people do not have to pay for Part A. If you or your spouse worked for at least 10 years in Medicare-covered employment, you should be able to qualify for premium-free Part A insurance.
Medicare vs. FEHB Coverage
Suspending FEHB For Medicare Plus Supplemental Coverage
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Mail Handlers Insurance and Medicare
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