Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Federal Retirees


For those approaching retirement as well as the currently already retired, here is a forum to share ideas and thoughts and exchange questions and answers.


To read today's top news stories on federal employee pay, benefits, retirement, job rights and other workplace issues visit FederalDaily.com.

To maximize your retirement, we also suggest you read "Retired Federal Employees Almanac".


(Reminder: soliciting of services is not allowed on this site.)

Options
Go to last post Go to first unread
ElvisCode  
#1 Posted : Tuesday, March 29, 2011 1:56:56 AM(UTC)
ElvisCode

Rank: Newbie

Groups: Registered
Joined: 3/29/2011(UTC)
Posts: 11

Once medicare kicks in, does that affect what you pay for premiums for FEHB if you retire under CSRS? Given that medicare was deducted from your paycheck while working.
dhacker56  
#2 Posted : Tuesday, March 29, 2011 2:12:48 AM(UTC)
dhacker56

Rank: Senior Member

Groups: Registered
Joined: 12/9/2008(UTC)
Posts: 6,382

No  but you can go to a lower cost plan if you choose.

crpetersen  
#3 Posted : Tuesday, March 29, 2011 2:13:27 AM(UTC)
crpetersen

Rank: Senior Member

Groups: Registered
Joined: 4/6/2003(UTC)
Posts: 469

Unfortunately no, we still have to pay just as much for FEHB as we did prior to medicare kicking in...  the only explanation I've seen is that the older people get, the more medical costs they have.
MMOB  
#4 Posted : Tuesday, March 29, 2011 11:10:02 AM(UTC)
MMOB

Rank: Senior Member

Groups: Registered
Joined: 6/1/2009(UTC)
Posts: 357

ElvisCode wrote:
Once medicare kicks in, does that affect what you pay for premiums for FEHB if you retire under CSRS? Given that medicare was deducted from your paycheck while working.
 
You're a bit confused about Medicare.  The 1.45% that was deducted from your paycheck was for Medicare Part A (Hospitalization).  There is no cost to you when you enroll in Part A at age 65.  However, if you want to enroll in Part B, then you have to pay a monthly premium - - just like any other senior who enrolls in Part B.  You did not contribute toward Part B while working.
ElvisCode  
#5 Posted : Tuesday, March 29, 2011 11:31:07 AM(UTC)
ElvisCode

Rank: Newbie

Groups: Registered
Joined: 3/29/2011(UTC)
Posts: 11

Thanks all for the information/clarification...another question, what is the advantage in enrolling in Part B, that isnt covered under FEHB and Part A. How much is the monthly premium?
OUtside  
#6 Posted : Thursday, March 31, 2011 1:15:15 AM(UTC)
OUtside

Rank: Senior Member

Groups: Registered
Joined: 8/19/2008(UTC)
Posts: 689

Was thanked: 3 time(s) in 3 post(s)

 

Elvis, hey, glad to hear you’re still out there, but by my count, you are a bit older than 65 years, the usual start age for Medicare.

Still, I am happy to offer some information per your request on this subject, partly out of appreciation for many years ago being able to dance to so many of your songs and melodies at soc hops, etc.

First, your question on the Part B premium, it’s currently about $115 per month for new enrollees, more on an increasing scale if you are of higher income (this probably pertains to you as last I heard, your records, etc are still selling…)

You didn’t say which fehb plan you have currently, so a first thing to do would be to read your fehb brochure to learn how your fehb plan works both for those subscribers who have Medicare and for those who do not have it. There will be specific sections in your brochure addressing these issues and you should be at great pains to understand them completely.

Most, but not all, fehb plans will waive cost sharing (deductibles, co-pays, coinsurances, etc) for those who have Medicare. In the case of Part B, for example, which generally covers services not including in hospital care or prescription drugs, when subscriber goes for a doctor visit, Medicare will generally set the rate of payment and then will pay 80%, leaving 20% which will be paid by the fehb plan. The fehb plan will then waive its own usual cost sharing for this visit. In sum, for retiree with fehb and Part B in this instance, the out of pocket cost sharing will be nil.

Understand if retiree does not have Part B for the doctor visit in the last paragraph, Medicare will nevertheless also set the rate for the visit and the fehb plan typically will then use this rate for its plan allowance. In that case, retiree (again, assuming he or she does not have Part B) will pay his usual cost sharing such as a co-pay, example $20 for a visit, or a percentage, in similar fashion as prior to his turning age 65. In addition, even if doctor does not accept Medicare assignment, fehb retiree without Part B receives same limit on a doctor charge as Part B enrollee, ie, doctor may not charge more than 115% of the Medicare rate for the service.

From time to time, someone will remember seeing large write-offs on provider billings such as a for a doctor visit to PPO doctor, and will assume because Medicare rates are usually low, retiree might now be stuck with the difference to pay out of pocket. This is definitely not the case and you can (and should) prove this to yourself by a careful reading of your fehb brochure on this topic.

It’s probably correct that because fehb cost sharing is low, such as a $20 co-pay for a doctor visit, that it is not easy to save more in waived co-pays than to pay in Part B premiums (which amount to about $1400 per year, or $2800 per year for a retired couple). But that is not the whole story, because even if in good health at age 65, retiree has to plan ahead for 20-30 years of retirement during which there would be the ‘peace of mind’ aspect knowing cost sharing would be nil having Medicare Part B for Part B-type services. It is a good idea to also take into account the catastrophic provision of your fehb plan (limit on cost sharing out of pocket expenses per year) when considering this factor.

Important also is the rule of the penalty for late enrollment in Part B, which provides an increase of 10% per year on the premium for each year retiree delays enrolling after first eligibility (generally age 65 and retired). The penalty can mount up fast as years go by, so if you think you might pass up Part B now and then maybe decide to enroll later, that is probably not a good idea expense-wise, as you will likely pay a lot more in premiums over the long term plus you will pay your coinsurance during the years you waited (which would have been waived).

My discussion above describes Part B as optional currently for the retired fed; in effect, it will not ’kick in’ as you put it, unless you enroll (except the part about Medicare setting the rate); however, no one knows whether Part B will some day become mandatory, so keep this in mind when considering the penalty for late enrollment and how it could affect you.


Part A is usually free for a retiree who paid the premiums while working (you mentioned this above), and, if so for the retiree, generally it is a good idea to enroll promptly at age 65.

Lastly, there are many threads at this web site which discuss these issues and you can learn a lot by doing a search here and reading them. You will find some people highly in favor of enrolling, others maybe not so much, and a few who are neutral but still try to make a contribution to the discussion to understand both sides of the issue.

Well, hope this helps, and if I stepped on your blue suede shoes at any time here, I certainly did not intend to do so.

ElvisCode  
#7 Posted : Thursday, March 31, 2011 7:15:23 AM(UTC)
ElvisCode

Rank: Newbie

Groups: Registered
Joined: 3/29/2011(UTC)
Posts: 11

Well thank you so much for the information OUtside! I am a few years away before I'm eligible to retire so I think its important to understand all aspects of retirement. You've been a great help. I love this website it has a wealth of information which should help me to make an informed decision on Part B. It will be interesting to read about the different viewpoints. Alot of this is soo new and overwhelming that I'm all shook up ;) ElvisCode2011-03-31 15:21:52
Rss Feed  Atom Feed
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.


This page was generated in 0.370 seconds.