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In a briefing, I was told that retiree premiums never increase. It is a fixed cost. Current the rate is 72% for the government side and the retiree pays 18%. Moreover, the cost of the premium is a fixed cost. Can this be true? https://www.opm.gov/faqs...b-4e64-9a72-fae98408fd0e
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Non-postal retirees pay the same premiums as active employees.
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You misunderstood what was said but, what they told you is a big deal.
Premiums pretty much go up every year however, the rate or portion the government pays remains constant 72% leaving you with 18% of the burden even after retirement.
I have two friends who retired, one worked for the city with a city pension another was a cop with a State pension.
Both had about the same deal as federal employees with regard to employer participation health insurance.
But both had extreme sticker shock upon retirement when they had to pay full freight health insurance.
Neither was aware when planning retirement that their employer would no longer participate in health cost.
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Originally Posted by: Raoul  You misunderstood what was said but, what they told you is a big deal.
Premiums pretty much go up every year however, the rate or portion the government pays remains constant 72% leaving you with 18% of the burden even after retirement. For the record, the employee share of the FEHB premiums is 28%, not 18%.
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I was using the OPs numbers.
I didn't even know it was 72% just knew it was a bunch and was grateful after what my buddies went through. |
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Something else to consider is that regular FERS annuitants pay for FEHB is post tax dollars vs pre tax dollars for covered FERS annuitants/current FERS (both covered and non covered) employees.
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Originally Posted by: bp340 Something else to consider is that regular FERS annuitants pay for FEHB is post tax dollars vs pre tax dollars for covered FERS annuitants/current FERS (both covered and non covered) employees. While true, it's certainly not a good reason to delay retirement if you're eligible!
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It's interesting how it is possible to misread the question and answer (below) from the link posted by the OP:
"Will my premiums increase once I retire?
No, you will pay the same premium as you paid while you were an employee. However, annuitants are paid on a monthly basis so you will pay them at the monthly rate. You may see an increase if you are employed by an agency, such as the Post Office, that contributes additional money towards the total premium. Retirees receive the same government contribution as most Federal employees."
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Originally Posted by: OUtside It's interesting how it is possible to misread the question and answer (below) from the link posted by the OP:
"Will my premiums increase once I retire?
No, you will pay the same premium as you paid while you were an employee. However, annuitants are paid on a monthly basis so you will pay them at the monthly rate. You may see an increase if you are employed by an agency, such as the Post Office, that contributes additional money towards the total premium. Retirees receive the same government contribution as most Federal employees." maybe. but the link and the question actually asked by the OP are not the same question. I concede maybe the OP was confused by what was stated in the briefing or possibly did not formulate their question properly. but this is pretty clear, at least to me: "I was told that retiree premiums never increase"
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Originally Posted by: OUtside It's interesting how it is possible to misread the question and answer (below) from the link posted by the OP:
"Will my premiums increase once I retire?
No, you will pay the same premium as you paid while you were an employee. However, annuitants are paid on a monthly basis so you will pay them at the monthly rate. You may see an increase if you are employed by an agency, such as the Post Office, that contributes additional money towards the total premium. Retirees receive the same government contribution as most Federal employees." "Will my premiums increase once I retire?" I'm of the opinion that the operative word in that sentence is "once". Once as in right then and there. |
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Retired since 2015 (2015-2016 BCBS Family)
My Premiums (Monthly):
BCBS Basic 111 (Self)
2017 - $154.32
2018 - $159.74
2019 - $159.74
2020 - $164.55
2021 - $170.31
2022 - $173.73
So...
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