Watch Out Federal Employees! Make Sure You Know Your Medicare Options

Federal Employees who qualify for Federal Employee Health Benefits, also known as FEHB have some interesting options when it comes to Medicare coverage. Do you take Medicare Part A only? Or, do you get Part A and Part B? Should you drop FEHB for a Medicare Advantage plan? Or possibly a Medicare Supplement plan?

We go through the different scenarios and explain which option makes the most sense for certain people.

*OPM Website Links*
Medicare vs FEHB Enrollment

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The Retirement Nerds is the no-cost educational platform and serves to offer information around Medicare, Social Security, Financial Planning, and Estate Planning.

⏰ TIME CODES ⏰
0:00 Intro
1:31 Option 1 FEHB + Part A
3:17 Option 2 FEHB + Parts A & B
7:37 Option 3 Medicare Advantage
10:07 Option 4 FEHB + Advantage
11:05 Option 5 Medicare Supplement

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#medicare #fehb #90daysfromretirement #federalemployees #federalbenefits

Federal Disclaimer:

[tylerfoss]

Outstanding video with excellent information!
Thank you, sir!
You mentioned a term late in the video that all federal employees and retirees need to remember: suspend.
When and IF the time comes, SUSPEND your NOT GET RID OF IT ALTOGETHER!
Suspending your FEHB allows you (or your spouse if you pass away) to get that health care insurance benefit back again if you choose.
Very important.

[seonpierce]

Very, very very sound explanation of a super complex topic. Thank you!

[JanetVaughn-cmet]

As a postal retiree, the new PSHB give you a choice to volunteer to sign up for part B, if your already retired. If you go that route then you WILL have both the part B premium and the premium for your plan under the PSHB. Deciding to pay for 2 insurance premiums will give you almost 100% coverage where the PSHB plan will cover deductible, co pays & etc. But the additional cost needs to be figured if you want any large medical events that will result in more $ than the additional premium. Since we can't predict the future of our health, each person will need to decide if the extra premium is worth it, or take their chances & get stuck paying those deductible, co pays & etc. Lots to consider, a " catch 62".

[rickw]

I’ve been retired for 4 years & have Medicare Part A & FEHB. FEHB pays for drug coverage & pays for most medical expenses. Plus if you travel or live overseas Medicare won’t pay, but FEHB will pay. I am happy with my decision.

[CouchFamilyUSA]

This is an upcoming stressful decision for myself as well. Have been researching it for more than a year. On the one hand FEHB coverage is good, but premiums are high. Doing “Medicare part B + a quality supplemental plan G + annually shopping the best overall part D plan” instead of “FEHB + Medicare B” appears to have a lower overall premium with about the same out-of-pocket, and lower drug cost. But if one walks away from FEHB, they can never get it back. From my research, it looks like the FEHB plans are more expensive than doing a combination Plan G supplement and part D plan. What am I missing?

[jameshouk]

I thought I had done a thorough job researching this, but I totally missed the 2-year "lookback" for income. Thank you.

[robertarouse]

Thank you for these very detailed explanations. My late husband had FEHB and Medicare part A. He had many health issues and never needed to pick up part B. Now that I'm getting closer to 65, I think I will do the same.

[KeithStedman]

I think you made a major error at the 4:15 point in the video which you later repeated 10:50 point. If an indiviual is enrolled in the FEHB he/she is enrolled in one of the insurance plans offered by a major insurance company. These companies include BCBS, UHC, Aetna etc. The plans are PPOs and HMOs and they all have networks. You make the statement that if an indivual with an FEHB plan enolls in A and B they have access to any provider that participates in Medicare. This is inaccurate. The networks (and the restrictions) do not change.

[eduardooramaeddie]

Thank you for the information on Medicare benefits

[tomm]

I'm glad I'm not a retired federal employee. This sounds very complicated - more than regular Medicare is. I did work for the Social Security Administration from 1982 - 1985. I got out of there pretty quickly.

[Loveandlight]

My parents are enrolled in a FEHB plan plus Medicare parts A and B. They also enrolled in an additional medicare advantage plan specifically offered only for annuitants that have parts A and B and the high option health plan through NALC. They did this because they get unlimited therapy visits and lower prescription costs and a reimbursement of 75 per month each plus dental and vision coverage and other perks. Their premium is 480.54 per month plus the part B premiums. Yes, it adds up to a lot, but they never pay anything for medical needs except prescription drug copays.

[Ninorc]

That is an excellent explanation of a complex topic. My sister-in-law became permanently disabled in 1996. She is covered by her late husband's FEHB plan and Medicare Part A. Since she turned 65 in November, her Social Security Benefit was reduced to cover Medicare Part B, but she does not remember enrolling in Part B and would like to terminate Part B and keep FEHB plus Medicare Part A. What are the implications of dropping Medicare Part B, and how can she implement her plan to un-enroll in Part B?

[healthadvicewithmary]

I have PSHB Federal BLUE CROSS BASIC and A and B Medicare. Do I have to make sure I am in the BLUE CROSS Providers and Medicare list

[jrasterback]

GEHA (a FEHB plan) has a Medicare Advantage plan that will reimburse you for your Medicare Premium up to $180/month. It costs about the same as basic GEHA.

[ostoja]

Outstanding video and how you explained it in detail. The links in your description help me out. Thank you.

[robinmoser]

One thing thing not mentioned about cost coverage. Some FEHB plans will pay part of the Part B to encourage people to apply for it.

[sct]

I want to share this info:
I just called SSA today 11/2024, you need 2 forms to enroll on Part B. 1) CMS 40B and 2) CMS L564 this form needs OPM to fill out the bottom. Mail to them with a cover letter to return it to you. Once you hand in L564 to SSA, there is no late enrollment penalty. 🎉🎉🎉🎉
My hubby wants to PAUSE FEBH, and enroll in Part B, supplement and D. No more networks.
TG!

[josephfahey]

One correction on PSHB. They do not require you to take Med B, however employees after 2024 will be required. Prior annuitants have the option to take Part B wo penalty if they did not sign up previously. USPS is picking up the penalty by 9/30/24 and you have till 12/31/24 to cancel if you change your mind. Unfortunately IMO another cart before the horse Quasi Govt rollout. Fewer choices and on first release looks like higher premiums compared to FEHB. They couldn’t leave well enough alone. Do you have numbers if FEDS do or do not usually take Part B.

[carmenanico]

Thanks for giving me the true answer regarding the FEHB advantage plan disadvantages that's what I needed for an inform decision. Thanks again.

[williamrutledge]

Best video on the subject I’ve seen. Thanks.