Re: Retirement and health insurance costs

CelticCrafter · ‎03-09-2010

@wagirl wrote:
I was told Medicare was free and automatic at age 65 —- and it’s the part B that cost $$. I will be 65 next month but the hubs is still working and I am covered as well, with much better insurance so I don’t need part B until he retires. but now I have to write to the local office to tell them NOT to take out the $135 from my SS until I need it. WTH !! I should be the one who decides when and if I want it not the freaking government. Such a hassle as is normal these days.

@wagirl When you got your Medicare card, which you should have received already if you are turning 65 next month, there are instructions right on the card telling you what to do if you don't want Part B.

I'm not sure I would have waited until now or beyond to tell them you don't want Part B.

Eileen in Virginia · ‎08-25-2010

@lmt Ihelped my friend complete the forms to make her direct premium payments and I could swear they said she had to pay both portions. I was surprised, too, but I didn’t want to interfere beyond getting her set up.

@lmt wrote:
@Eileen in Virginia wrote:
@I am still oxox If your head isn’t spinning yet, let me add one more item for your consideration. Your husband may elect, with your notarized written consent, to provide you with less than a full survivor annuity should he die before you. Sometimes the retiree’s spouse has their own retirement income, but they don’t have health insurance coverage comparable to FEHB, so the Federal retiree will elect a lower survivor annuity in an amount that seems sufficient to cover the survivor’s monthly FEHB premiums. If you and your husband are considering this when he retires, please be sure to factor inflation over several decades into the calculation. While Federal annuitants and survivor annuitants don’t always get Cost of Living Adjustments (COLAs) every year, our FEHB premiums have increased almost every year. At some point, the survivor annuity will no longer cover the FEHB premiums.

Two of my friends are the widows of Federal retirees who elected this type of survivor benefit for them. One of them currently receives a little more than $100 per month over the cost of her FEHB premiums. The other’s survivor annuity fell short of the amount she needed to cover her premiums 2 years ago (shortly after her husband died). If/when this happens, OPM notifies the survivor and gives them the option of transferring to an FEHB plan they can afford or making direct payments for their current FEHB plan to the Government. In the latter case, the survivor must pay both the employee share and the Government share of the premiums. I’m sure both of these gentlemen felt confident that they were providing adequately for their wives. But they didn’t consider how long they would live after retiring or how long their wives would live after the husbands died. Hindsight is 20/20.

@Eileen in Virginia The survivor has to also pay the government's share of the premium?

If the annuity isn't enough to cover the deceased employee's share of the health insurance, wouldn't the surviving spouse just have to pay the difference?

I've researched and can't find any information that says they'd also be responsible for paying the government's share.

Mindy D · ‎05-23-2010

@I am still oxox wrote:
My hubby will be retiring in April or May of 2020 from a job in the Federal Gov't.
He just got a estimate of benefits which includes a $450 dollar monthly charge for health insurance. With the 140 each dedication for Medicare this will bring our monthly payments to over 700 per month.
Is this the going rate, or do I need to start shopping around?

This depends on where you live and your husband’s age. If he’s going to be 65 or older he can definitely do better. If he’s younger you’ll have to compare available Affordable Care coverage plans online. You can only preview the prices for the current year. These prices vary greatly depending on your county, your age, what annual out of pocket and deductible you want and whether you live in a state that puts middle income retirees into their state Medicaid program or not. You can also check to see if you qualify for one of two types of discounts offered with the ACA.

If your DH will be 65 he can choose between simple Medicare, a Medicare Advantage Plan or a Medicare Supplemental Plan. https://www.medicare.gov/index

You will definitely benefit from shopping around.

Caffeina · ‎03-09-2010

@I am still oxox, I'm also a retired fed, and my Medicare will be effective in July. I have the BCBS Standard option, and will continue to keep it. I recommend taking a look at the booklet from BCBS, "2019 Medicare and Blue." It's available online as a PDF. I don't know if it's OK to post the link here, but if you Google fepblue medicare, you'll see the link to download the file. See picture.

fepblue medicare.JPG

conlt · ‎03-16-2010

My mother is on Medicare and we pay about $240 for her supplement. That is all she needs. I would imagine he would be completely covered with Medicare and the Federal Insurance. Does the price of the Federal Insurance include you?

shoekitty · ‎03-10-2010

@I am still oxox

I was 70 when i started medicare. My husband and I went to the insurance agent here in town that deals in medicare plans. It is free, no obligation. They take your info, what dr you want to keep or see, any medical issues, your prescriptions, how much you can afford, etc. they put it in computer and it comes up with a few choices. I wanted a PPO, and one that had good coverage. I chose AARP united health care. I can go to any dr anywhere with no referral, and I havent had any charges yet. I was 70 it is 129@mo. I pay 19@mo for RX. I paid for entire year and I got small discount. I like it. My husband who sees a dr once a year got an advantage plan. He pays nothing. Social security takes a lot out though because of income. For medicare

Tinkrbl44 · ‎08-23-2010

@I am still oxox wrote:
My hubby will be retiring in April or May of 2020 from a job in the Federal Gov't.
He just got a estimate of benefits which includes a $450 dollar monthly charge for health insurance. With the 140 each dedication for Medicare this will bring our monthly payments to over 700 per month.
Is this the going rate, or do I need to start shopping around?

@I am still oxox

Regardless of whatever you select, keep in mind that coverage will go up every year. Medicare isn't free.

CalminHeart · ‎03-09-2010

@I am still oxox wrote:
My hubby will be retiring in April or May of 2020 from a job in the Federal Gov't.
He just got a estimate of benefits which includes a $450 dollar monthly charge for health insurance. With the 140 each dedication for Medicare this will bring our monthly payments to over 700 per month.
Is this the going rate, or do I need to start shopping around?

I have been paying $700+ per month for just me for retiree health insurance through my employer. You're lucky if $700 will cover both of you.

I go on Medicare in 18 days and can hardly wait. I took Plan G for my supplemental policy. The only differences between Plan F and Plan G are that 1) G has a $180 deductible each year and 2) premiums are $300+ less per year than F so I come out a little ahead.

I will save over $400 per month paying for Medicare, supplemental policy, and RX policy when compared to my employer coverage. Plus, the coverage will be 100 times better.

I worked for (what became) a big international corporation for nearly 40 years. They announced they'll stop subsidizing retiree health insurance for anyone who retires after 2019. The cost to retirees will nearly double. This is the direction big business is heading. Employees are now considered liabilities by big business.

missy1 · ‎03-10-2010

@highmaintenancejan wrote:
Any way you look at it, it is expensive for people living on Social Security, fixed incomes! What a shame in our golden years, huh?

I am guessing my generatrion won't get SS, even though we paid into it. They will probably get rid of/change medicare too.

wagirl · ‎03-09-2010

@CelticCrafter---I never got a card or any info. Just got the notice that the $$ would start to be deducted in June-------normally I would have jumped all over this sooner.