Should I take Medicare or keep FEHB?

UPDATED VIDEO: FEHB versus Medicare 2024 Update

If you're a federal employees that's struggling to determine whether to apply for Medicare or just keep FEHB, this video is for you.

In this video, Thiago discusses the the parts of Medicare, why feds should consider taking at least Part B, the costs, and other considerations.

Read the full article here:

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[jamminjack]

I am retired from federal service for nine months now, having retired 4 months before my 66th birthday. I was so uncertain about what to do with health insurance at retirement, but kept hearing that if I take Medicare Part B as primary and keep my BC/BS plan as secondary, I will have almost no out-of-pocket expenses for medical care. This is huge for me because I have several auto-immune diseases and began needing joint replacements in my early 50s. Where I worked for VA, it was nearly impossible to get real feedback from federal retirees about this issue. But, I took a leap of faith and signed up for Part B as soon as I retired, and I kept my federal BC/BS for secondary. Yes, it's a big chunk of change to pay both premiums every month. However, it's well worth it for me. I just had a hip replacement six weeks ago. I have no medical bills from that. All of my medical care for the past 9 months - same story - no bills. Now, for someone who is super healthy, maybe this isn't such a big deal. But, who knows what the future will bring once we are in our 60s and 70s. My health problems began in my 50s, so I knew I had to have great coverage in retirement. I am so grateful that I had the ability to carry my federal BC/BS into retirement as my secondary insurance. For me, it is worth paying both premiums every month.

[ponyboy]

Dude please kill the annoying background music so we can hear what is important to know

[johnblaine]

How will Kaiser HMO be affected by the new PSHB plan ?

[chesshead]

Great discussion, thanks! Can you please link to the new Medicare FEHB video in the top section?

[jeffopenshaw]

I am trying to decide if a Medigap plan would be a better choice with Medicare than FEHB with Medicare. I regret not signing up for Medicare B and will get a second chance in 2024 with the SEP for PSHB, just trying to decide on Medigap for the long term versus BCBS federal for the long term and the cost of each down the road. Any incite would be appreciated!

[Scadaboy]

It is my understanding that FEHB is "Creditable Coverage". That means there is no penalty to join Part B at some point down the road. Why is a penalty discussed in this scenario?

[julio]

I’m a retired federal employee with FERS bcbs standard (primary). I also have a state pension with “free” bcbs CALPERS gold plan (secondary). Calpers also reimburses my Medicare part B premiums for wife and self. Should I take traditional Medicare parts A&B, drop my federal bcbs and save the monthly premiums, and keep my state bcbs Gold for copays?

[victorialarkin]

If continuing to work does the 10% penalties apply from age 65 for not signing medicare and what about taking spousal ssa benefits I thought once you enroll in social security you are auto enrolled medicare A

[Kevy]

I was told by a fellow retiree the same thing you stated that when you turn 65 your FEHB changes and the your coverage would not be the same. This didn't make sense to me since I'm still paying the same premium and should be treated the same as a Federal employee who is still working and or under 65. I called BCBS and was told that nothing would change in my coverage. It's also noted in the Q&A on OPM's website that your coverage will be the same. Having part B may benefit some federal retirees only because the FEHB plan doesn't cover the service, procedure or device fully or partially in the first place. Having FEHB and plan B would be a great upgrade with almost complete coverage. Am I missing something? thanks for posting the video.

[johnblaine]

Please correct me if I'm wrong.. So I can suspend FEHB or PSHB, enroll in medicare part B and sign up for Senior Advantage Plan at Kaiser. This will cover my family's medical needs.

[chesshead]

Another option that you did not discuss is that Federal retirees can suspend their FEHB coverage in retirement, then restart it again later. That would be another way to keep their options open, but keep their medical expenses down. When they suspend FEHB they could be relying on Medicare and other coverage, such as Tricare retired, Medigap insurance or some other medical plan coverage.

[BenSussmanpro]

Thanks for the presentation. But now Im confused- if I keep the same FEHB plan in retirement (which my doctor accepts), you’re saying that if I tack on Part B, that I wouldn’t be covered by my doctor if he doesn’t take Medicare?

[mando]

Do I need Part B if I have Medicare (primary), BCBS Federal (secondary), and Tricare for Life (tertiary) health insurance?

[mtan]

I am a retired Federal civilian but still working full time in private sector. Do I need to sign up for Medicare B while still fully employed?

I am retired from the Navy and remain under FEHB medical insurance. So I’m not covered by my current employer for health insurance. Will I need to pay if I don’t sign up for Medicare B right at 65? I intend to retire in a few more years.

[artvandelay]

I will be 66 later this year and still working with FEHB. I plan to retire in mid 2024 or at the end of that year worst case. I have not signed up for Medicare A, but have heard that even if you are working and have coverage you still will be penalized 10% for every year you do not sign up for the part B. I had heard as you say that if you are still working with health coverage that the penalty does not apply. Which is it? Either way i am signing up for part A in the next 3 months, it is just this part B that is the bug-a-boo. For peace of mind i am leaning getting the B even with my FEHB. Thanks for any advice.

[mikecarignan]

Thanks, all apply to my situation.I just got 800 payback!!had to apply?not automatically, read fine print.

[healthadvicewithmary]

I have Blue Cross Blue Shield. Basic and I have medicare A and B and get $800 back from Blue Cross Blue Shield and I joined an AEtna advantage plan so that they give me $85 back, Because I have prescription drug coverage through blue cross blue. The draw back is that I need to go to the AEtna Doctor's and the cross blue shield doctor network .I thought of setting aside my blue cross blue shield FEHP plan and enrolling in a supplement plan.G, or N what is your opinion about doing that?Thank you

[debVA]

Trying to understand the FEHB Medigap policy comment as well. I have BCBS Std Option (normal premium) with Medicare Part B (with IRMAA premiums). BCBS Std Option with Medicare does now pick up copays and co-insurance charges that I paid out of pocket before Medicare. Is that what you mean by BCBS Medigap policy or is there actually different FEHB BCBS Medigap programs separate from traditional BCBS Standard or Basic Option. (It hasn’t come up in my research anywhere.)

[roachtoasties]

Having FEHB and Medicare at once can take a huge chunk of your income. It may be worth it, and it may be not. There's no way to predict your health needs down the road.

[chesshead]

Another factor in this that people need to consider is coverage outside of the United States. I think Medicare just covers inside the USA. And Tricare and FEHB will cover outside of the us. So if people are planning to live abroad or travel extensively, then that could be a factor for them.