By Reg Jones
CSRS and Medicare
April 30th, 2013 | Medicare RETIREMENT
Q. I retired in 2009 under CSRS. I am close to 65, and the answer to one of the questions asked states that people in CSRS are not eligible for Medicare because they didn’t pay into Social Security.
I was in CSRS before the change to FERS and stayed with CSRS. I had Medicare deductions taken from my pay from 1983-84 till I retired in 2009.
Do the Medicare funds I paid since 1983 make me eligible for Medicare or just part of it?
So which is right? I need to know so I can do what needs to be done — enroll or not. I’m currently insured under federal BCBS.
Tags: CSRS, FERS, Medicare Part A, Medicare Part B, SOCIAL SECURITY
Medicare Part B
April 9th, 2013 | HEALTH INSURANCE Medicare spouse benefits Uncategorized
Q. I will apply for Medicare Part A when I reach 65 as a FERS retiree. My wife will not be eligible for eight years after, and I will retain my federal Blue Cross/Blue Shield family policy. She also has a state BC/BS policy in which I am included. Her policy does not carry over into retirement, so I will keep mine until she is eligible for Medicare. If I wait until she no longer has me under her policy, will I be entitled to then apply for Medicare Part B without penalty under the Substantially Equal Periodic Payment exception, or do I need to do it when I am eligible for Medicare to avoid the 10 percent-per-year penalty?
Tags: enrollment penalty, FERS, Medicare Part A, Medicare Part B
Medicare Part B
March 30th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am a recent retiree and have to decide whether to obtain Medicare Part B coverage. I have, and intend to keep, my Blue Cross coverage. I am trying to determine whether I should opt for Medicare Part B for my wife and I, even though I have Blue Cross. The Medicare Part B monthly payments would range about $150 for each of us.
Tags: Blue Cross/Blue Shield, FEHB, Medicare Part B, monthly premium payment, RETIREMENT
Medicare Part B
March 30th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am retired military. I am 65 years old now. Do I have to pay for Medicare Part B even though no expense now?
Tags: age, enrollment, Medicare Part B, military, RETIREMENT
12 questions on VERA
March 21st, 2013 | DOWNSIZING HEALTH INSURANCE High-3 Medicare PAY SOCIAL SECURITY Uncategorized VERA
Q. I am a letter carrier, age 52, started in 1985 and have 28 years of creditable service.
If I understand what I’ve gleaned from the posts here and the Postal Service were to offer me a Voluntary Early Retirement Authority this year,
1. Would I begin my annuity immediately?
2. Would I have no reductions in calculations of my annuity? (average high-3 x 1 percent x 28)
3. Would I receive credit for half of my sick leave and all of my annual leave? (How are these applied?)
4. Would I receive the special retirement supplement beginning at age 56 (my minimum retirement age), and receive it until I reach age 62?
5. Would I be able to continue carrying my current health and life insurance at non-USPS rates? (I couldn’t find how long these could be carried. Until death?)
6. Could I begin receiving Social Security as early as age 62?
7. Any withdrawal from my Thrift Savings Plan prior to age 59½ would be penalized 10 percent as per Internal Revenue Service regulations? (Can I continue to contribute to TSP after retirement?)
8. As a FERS annuitant, is there no limit to what I can earn after separation from the Postal Service as it pertains to my annuity payment?
9. At age 56 (my MRA), the special retirement supplement from Social Security would begin and would be subject to yearly income limits. Would supplement payments be reduced by approximately $1 for every $2 I earned above that year’s Social Security income limit?
10. At age 65, I’d be eligible for Medicare parts A and B? (Would this affect my health insurance coverage through Federal Employees Health Benefits?)
11. Would there be cost-of-living increases at any point for my annuity?
12. Is there a date during the year that maximizes the benefits of retirement?
Did I get this right, and are there any other things I should know before considering a VERA if it is offered?
Tags: 401(k), annual leave, annuity, cost-of-living adjustment, creditable service, early withdrawal penalty, enrollment, FEHB, high-3, income, IRA, IRS, LIFE INSURANCE, lump sum, Medicare Part A, Medicare Part B, minimum retirement age, Postal Service, sick leave, SOCIAL SECURITY, special retirement supplement, TSP, VERA
Medicare Part B premium
March 21st, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am going to retire Jan. 1, 2014, and I realize that my modified adjusted gross income will cause my Medicare Part B premium to at least double. But once I retire, my income will go down. Does the Medicare Part B premium get adjusted annually? Or is it set for life as of your retirement date?
Tags: income, Medicare Part B, premiums, RETIREMENT
Turning down Medicare Part B but taking it later
March 15th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am 65 years old and am employed full time by the federal government. I will continue my federal employment for several years. I am covered under Federal Employees Health Benefits and pay for Blue Cross/Blue Shield insurance. If I decline Part B now and decide to take it later, will I be subject to the Medicare Premium penalty?
A. Yes, you can decline Part B while you are still employed without penalty. When you are no longer employed, you’ll have an eight-month window in which to enroll, penalty-free, which begins the first full month after you retire.
Tags: age, Blue Cross/Blue Shield, enrollment, Medicare Part B, penalty, RETIREMENT
Medicare Part B
March 14th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I will be a CSRS retiree soon enrolled on my younger wife’s FEHB family plan. Does it make sense for me to enroll in Medicare part B being on her plan? Will her premiums be affected if I do?
A. Her premiums won’t be affected one way or the other. Whether you should enroll in Medicare Part B is up to you to decide based on your current and projected health needs. Just remember this: If you don’t enroll in Part B and later decide that you want to do that, the cost of those premiums will be 10 percent higher for each full 12-month period you could have enrolled in Part B and didn’t.
Tags: CSRS, enrollment, family plan, FEHB, Medicare Part B, RETIREMENT, spouse
Medicare Part B penalty
March 6th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am 59 years old and covered under Federal Employees Health Benefits as the spouse of a CSRS annuitant. Due to a covered disability, I have been receiving Social Security Disability Benefits for the past 18 months and was just advised that I will be eligible for Medicare Parts A and B in June. If I decline Part B and decide to take it later, will I be subject to the Medicare Premium penalty?
A. Yes.
Tags: annuity, CSRS, disability, FEHB, Medicare Part A, Medicare Part B, penalty, SOCIAL SECURITY, spouse
Retirees, Medicare and the ‘creditable plan’
March 5th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am retired with Blue Cross/Blue Shield and will be signing up for Medicare Part A soon to avoid penalties for Part B and Part D. Does my BC/BS meet the “creditable plan” requirement to avoid penalties? I have been told “yes and no” on the phone by Medicare. If I sign up for an HMO with a lower cost, will I meet “creditable plan” standards if I drop Federal Employees Health Benefits? Can I re-sign up for BC/BS later if I don’t like the coverage?
A. The “creditable plan” feature you’re referring to only applies to those who are currently employed or are covered by a family member who is employed. It doesn’t apply to retirees, regardless of the plan they are in.
If you drop your FEHB coverage, you can’t re-enroll in it unless you return to work for the government in a position that allows you to be covered by the FEHB program.
Tags: Blue Cross/Blue Shield, FEHB, Medicare Part A, Medicare Part B, Medicare Part D, re-enrollment, RETIREMENT
FEHB and Tricare for Life
March 1st, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. On Jan. 18, there was question about which is primary between these two programs, and the answer ended with “whether you keep both [Federal Employees Health Benefits] and Tricare is something you’ll have to decide.” How do you decide? Where can I find a clear, side-by-side comparison of my FEHB (BC/BS standard in my case) and Tricare for Life — one that is not comparing apples to oranges? I have been told I don’t really need FEHB because TFL is “very comprehensive,” but how can I find out exactly what, if anything, FEHB would cover that TFL wouldn’t. P.S. I’m in excellent health and am also covered by Medicare Parts A and B.
A. Unfortunately, no one has made such a comparison, nor is it likely that anyone will. While Tricare and Medicare A and B are monolithic, with their benefits spelled out in detail, there are around 200 plans in the FEHB program. And what they cover varies, not only in the services covered but in the level of reimbursement, co-payments and deductibles. If you want to make such a comparison, you can do so by carefully reviewing what your own FEHB plan provides with what Tricare does.
In closing, you mentioned that others have told you that you don’t need the FEHB coverage because Tricare is very comprehensive. While I don’t know if that’s true, I’ve been told the same by other former members of the military who made the decision to suspend their FEHB coverage and were happy with the decision. Whether you’d be happy if you did the same is something I can’t predict.
Tags: Blue Cross/Blue Shield, FEHB, Medicare Part A, Medicare Part B, Tricare for Life
Health insurance
March 1st, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am enrolled in Medicare Part A and B. I also have Tricare for Life and Federal Employees Health Benefits (Blue Cross/Blue Shield). My doctor has opted out of Medicare and wants $5,000 for a hip replacement. Will FEHB pay his fee?
A. The only way to find out how much of your doctor’s fee your FEHB plan will pay is to ask them.
Tags: Blue Cross/Blue Shield, FEHB, Medicare Part A, Medicare Part B, Tricare for Life
Suspending FEHB
February 25th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. When I turn 65, I can enroll in Medicare Parts A and B. The other parts do not interest me. At this time, I am enrolled in a Federal Employees Health Benefits plan. I am a veteran who is 60 percent disabled, and the Veterans Affairs Department covers my medical needs at 100 percent plus meds if I use its facility. At age 65, I would like to suspend my FEHB plan and use Medicare Parts A and B plus my VA. Can I suspend my FEHB under this situation?
A. No, you can’t.
Tags: disability, enrollment, FEHB, Medicare Part A, Medicare Part B, suspending
Medicare Part B
February 19th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am retired and have Blue Cross/Blue Shield Basic for my health plan. I will be 65 in May and need to make a decision on whether I should get Part B when I have my current FEHB coverage. If I decide to take Part B, there will be another monthly cost. Is there any FEHB plan that would benefit me to enroll in and also keep the costs down if I decided to take Part B? This is confusing to me.
A. It’s confusing to you because it’s confusing to everyone faced with that decision. Unfortunately, there isn’t any way to make it less confusing. You’ll have to consider your current and anticipated health care needs. Then you’ll need to review the pluses and minuses of your current plan and Medicare Part B to see if there’s anything to be gained by enrolling in Part B. Finally, you’ll need to look at some other FEHB plans with lower premium costs to see if they’ll provide you with what you need and want, while offsetting some of the cost of Part B.
Tags: age, Blue Cross/Blue Shield, enrollment, FEHB, Medicare Part B
Medicare Part B
February 18th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am a Bureau of Prisons retiree with GEHA health insurance. Should I enroll in Medicare B? I know I don’t have to enroll in Medicare B, but would like to know the pros and cons of not enrolling. It seems the only entity that would benefit from that enrollment would be GEHA, or whichever health plan I enroll in, as it would automatically be deemed secondary with Medicare Part B as the primary, thereby avoiding paying the full cost of whatever medical procedure I might receive. If I sign up for Medicare B, won’t I be paying twice for the same services? If that is the case, why would I even consider enrolling in Medicare Part B? Am I missing something here?
A. The best place to find the pluses and minuses of enrolling in Medicare Part B will be found at www.opm.gov/health/medicare/index.asp.
Tags: enrollment, GEHA, HEALTH INSURANCE, Medicare Part B, OPM
Medicare and FEHB
February 5th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am retiring from the VA when I am 62. I hold the insurance for myself and my husband, and I am able to keep family health benefits when I retire.
My husband is two years and nine months younger than I am.
When I reach 65, can I still keep GEHA insurance until my husband reaches 65 and can start drawing Medicare on his own? I do not want him not having heath insurance when he is 62. I heard someone say that at 65 I could do Medicare Part A and keep my government health insurance, and then, when he has reached 65, I could drop the GEHA in an open season and go with Part B with a supplement.
A. Yes, you need to keep enrolled in the self and family option of your FEHB plan to ensure that your husband’s health needs are covered. As for dropping your FEHB plan when you are both covered by Medicare, you had better think twice about that. If you drop it, you will never be able to re-enroll if you later change your mind. While Medicare Part A is free (you already paid for it through payroll deductions), you’ll have to pay for Part B. Whether you need to enroll in Part B is something you have to think through. Compare what your FEHB plan will cover with what Medicare Part B covers. Then review your current and anticipated health needs.
While many retirees elect to be covered by their FEHB plan and Medicare Parts A and B, many others elect not to enroll in Part B. One answer doesn’t fit all.
Tags: FEHB, Medicare Part A, Medicare Part B
Benefits/drawbacks of Medicare Part B
February 5th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I will retire under CSRS and will maintain my FEHB insurance and Medicare Part A. What are the advantage and disadvantages of obtaining Medicare Part B?
A. The disadvantage is that you have to pay the premiums for Medicare Part B. The advantage is that it works with your FEHB coverage to reduce your out-of-pocket costs for medical, clinical lab service, home health care, outpatient hospital service and blood. You’ll have to review what the two plans offer and see where they overlap, reinforce each other or fill gaps.
Tags: CSRS offset, FEHB, Medicare Part A, Medicare Part B
Health insurance change
February 4th, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am a 69-year-old female FERS retiree, covered under parts A and B of Medicare and Blue Cross/Blue Shield basic for federal employees. I also have my spouse insured on this plan. My spouse is a military retiree, so we have Tricare for Life, and he also has parts A and B of Medicare.
I would like to change to the less expensive BC/BS health insurance, but I want to keep the doctors we currently have. Is there a possibility I would have greater out-of-pocket expense with the standard BC/BS? I would like to take the difference in premiums and subscribe to a dental plan.
A. To find out if you’ll be able to keep the doctors you now have, you’d need to check with Blue Cross/Blue Shield. While there is a possibility that you would have greater out-of-pocket expenses with the lower-cost option, the only way to find out is to check with your plan and learn how that option handles claims from members who are covered by Medicare parts A and B.
Tags: Blue Cross/Blue Shield, FERS, HEALTH INSURANCE, Medicare Part A, Medicare Part B, military, RETIREMENT, spouse
Medicare Part B penalty
February 1st, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I am retired under CSRS with survivor benefits for my spouse. I have Medicare Part A and Federal Employees Health Benefits Blue Cross/Blue Shield family plan. My spouse has just become Medicare eligible. Since there is a penalty (140 percent) for me to pick up Part B, we are contemplating continuing with the Medicare Part A and FEHB. The adviser at Social Security questioned our health insurance coverage after I die, noting the penalty in picking up Part B later. I assume that FEHB coverage will continue with the survivor benefits. Also, will the cost of the FEHB become the self-only rate?
A. If you are enrolled in the self and family option and have elected a survivor benefit for your wife, she would be able to continue that coverage and could convert to the self-only option.
Tags: Blue Cross/Blue Shield, CSRS, FEHB, Medicare Part A, Medicare Part B, penalty, RETIREMENT, SOCIAL SECURITY, survivor annuity
Primary vs. secondary insurance
February 1st, 2013 | HEALTH INSURANCE Medicare Uncategorized
Q. I have been covered by my wife’s GEHA plan for the past 10 years, and I continue to be covered under her policy (as do our two kids; we are in a self and family plan). Two new variables are coming into play for my health care: 1) I will be eligible for Medicare coverage in two months; and 2) I just started receiving a federal annuity. (Note: I am eligible to receive Social Security but have not yet signed up).
I have two related questions:
1) If I continue to remain under my wife’s Federal Employees Health Benefits policy (assuming that I can), what happens if I sign up for Medicare? Which is the primary insurance, and is it more beneficial to have FEHB or Medicare as the primary insurance?
2) If I were to register for Medicare coverage (and if I am still under FEHB coverage via my wife), does it make sense to register for both Part A and Part B, or just Part A of Medicare? Insurance?
A. Because you are retired, Medicare would be primary and your FEHB coverage secondary. It doesn’t make any sense not to sign up for Medicare Part A because you’ve already paid for that benefit through payroll deductions. Whether you need to sign up for Part B is decision you’ll have to make. To get a better understanding of the relationship between the FEHB and Medicare, go to www.opm.gov/insure/health/medicare/index.asp
Tags: annuity, FEHB, GEHA, Medicare Part A, Medicare Part B, payroll deductions, self and family, SOCIAL SECURITY, spouse