Do federal retirees really need Medicare Part B?
Asked by: Antwan Harris | Last update: December 24, 2023Score: 5/5 (70 votes)
Do I Have to Take Part B Coverage? You don't have to take Part B coverage if you don't want it, and your
Should I get Medicare B if I have FEHB?
If you are working and have FEHB or you are covered under your spouse's group health insurance plan, then you do not have to enroll in Part B when you turn 65. You will have a special enrollment period when you retire or your spouse retires to enroll in Part B without paying a penalty.
Is Medicare mandatory for federal retirees?
With regard to Medicare, the decision is yours. 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.
Why keep FEHB with Medicare?
If you have FEHB and do enroll in Medicare, then Medicare will be your primary coverage and your FEHB plan will pay after Medicare does. Having Medicare could reduce your out-of-pocket costs, because many FEHB plans waive cost-sharing for enrollees who have Medicare.
How many federal retirees have Medicare Part B?
About 70% of federal retirees enroll in Part B, which means paying two premiums and in essence two duplicative insurance programs.
Does Medicare Part B And FEHB Work Well Together?
What is the best health plan for federal retirees?
- Best overall: Medicare.
- Best if you have a low income: Medicaid.
- Best Medicare Advantage: Humana.
- Best Medicare Supplement: Plan G from AARP/UnitedHealthcare.
- Best prescription drug plan: Aetna.
- Best if you're under 65: Blue Cross Blue Shield.
Why is FEHB so expensive?
Why are my Federal Employees Health Benefits (FEHB) premiums getting higher? Increases in rates are caused by changes in medical inflation (health care services cost more), demographics (aging population), changes in benefits, technology, and utilization.
How do I keep my FEHB in retirement?
If you meet the requirements to do so, as a retiree, you are eligible to maintain FEHB throughout your lifetime. The requirements to maintain FEHB in retirement are: You must be eligible for an immediate pension (annuity) and, Been continuously enrolled in FEHB for 5 years prior to your pension (annuity) starting.
Who pays first FEHB or Medicare?
Your FEHB Plan must pay benefits first when you are an active Federal employee or reemployed annuitant and either you or your covered spouse has Medicare. (There is an exception if your reemployment position is excluded from FEHB coverage or you are enrolled in Medicare Part B only.)
Can I have FEHB and Medicare Advantage at the same time?
Suspending FEHB for Medicare Plus Supplemental Coverage
If you have Original Medicare and FEHB but want coverage through a Medicare Advantage, you'll need to suspend your FEHB coverage. Suspending FEHB is not the same as canceling. Meaning, you can re-enroll if you decide to suspend your FEHB.
How much will Part B go up in 2023?
The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022.
Do FEHB premiums increase in retirement?
premiums change when I retire? No. You will be entitled to the same benefits and annual premiums as Federal employees enrolled in the same plan.
When did federal employees start paying into Medicare?
The Social Security Act was amended and as of January 1, 1983, federal employees were required to pay toward the Medicare Part A FICA tax.
Why would you not take Medicare Part B?
Why would I opt out of Medicare? Part B comes with a premium in most cases. Some people delay Medicare open enrollment in Medicare Part B to avoid paying the premium – especially if they have other coverage. The same can be true of Part A, for people that must pay a premium for it.
Do I pay Medicare Part B premiums if I have Medicare Advantage?
In addition to your Part B premium, you usually pay a monthly premium for the Medicare Advantage Plan. In 2023, the standard Part B premium amount is $164.90 (or higher depending on your income). If you need a service that the plan says isn't medically necessary, you may have to pay all the costs of the service.
Can you have FEHB and Part D at the same time?
However, if you choose to enroll in Medicare Part D, you can keep your FEHB coverage and your FEHB plan will coordinate benefits with Medicare.
Is it necessary to have a Medicare supplement?
Medicare supplement plans are optional but could save you big $$$ on doctor bills. Your cost-sharing under Part B is similar. You are responsible for paying your Part B deductible, which is $226 in 2023. Then Part B Medicare only pay 80% of approved services.
Is Medicare going up in 2023?
For 2023, the Part A deductible will be $1,600 per stay, an increase of $44 from 2022. For those people who have not worked long enough to qualify for premium-free Part A, the monthly premium will also rise. The full Part A premium will be $506 a month in 2023, a $7 increase.
Can I suspend my FEHB at retirement?
Yes, you may suspend your FEHB coverage in favor of a Medicare Advantage Plan. To do that, you'll have to complete a Health Benefit Cancellation/Suspension Confirmation form, available at https://www.opm.gov/forms/pdf_fill/ri79-9.pdfand send it to OPM.
How does Medicare Part B work with FEHB?
Medicare Part B doesn't replace FEHB, but rather supplements it. Medicare becomes the primary insurance and pays for your services first, with FEHB being secondary. Part B is a fee-for-service plan, which means you'll pay a small out-of-pocket fee each time you use the services.
What is the 5 year rule for federal health insurance?
FEHB law requires a retiring employee to be covered under FEHB for the 5 years of service immediately before retirement or, if less than 5 years, for all service since the employee's first opportunity to enroll in FEHB.
What are the premiums for FEHB 2023 for retirees?
For 2023, the biweekly program-wide weighted average premiums for Self Only, Self Plus One, and Self and Family enrollments with a government contribution are $360.72, $778.50, and $849.19, respectively.
What is the most popular FEHB plan?
Almost two-thirds of federal employees are enrolled in one of the Blue Cross Blue Shield (BCBS) plans—Standard, Basic, or FEP Blue Focus.
Do federal employees get free healthcare for life?
In retirement, you pay the same healthcare premiums through the FEHB program as you would when you were a full-time employee of the government.
Is the federal government getting a raise in 2023?
The figure marks an increase over the 4.6% pay hike feds received in 2023, and would be the highest proposed pay hike federal workers have seen since the Carter administration implemented a 9.1% average pay increase in 1980.