Reply
Respected Contributor
Posts: 4,373
Registered: ‎04-04-2015

Re: Retirement and health insurance costs

[ Edited ]

@Carmie wrote:

@Isobel Archer   you can opt of if Medicare Part B without any penalty if you have creditable coverage from another source.  I am pretty sure the Federal Employee Plan is creditable.

 

It is very common for people not to have Medicare Part B when they have employee coverage either working or retired.  You can save a whole lot of money each year by opting out.


I think, according to the OPM website, that only applies while you are still working.  Once you are retired, you are subject to the penalty if you opt out and later decide to take part b.

 

You may be thinking of the prescription drug coverage - for which FEHB is considered creditiable coverage.

 

Here is more information on the pros and cons:  https://www.checkbook.org/newhig2/year19/advice/should-federal-annuitants-enroll-in-medicare-part-b-...

 

Specifically as to FEHB and opting out of Part B:

 

"If you do decide to drop (or not start) Part B you can join it later. But there is a 10 percent a year penalty if you later decide to join or rejoin. As a financial matter, however many years you elect to do without Part B, you will be money ahead for approximately the first five or six years after joining or rejoining (those who start out paying the higher income-tested premium well be much more money ahead). After that, the penalty will outweigh your earlier savings (except for those who were once above, but now fall below, the income-tested premium). If you never join or rejoin, you will (on average) save annually roughly the amounts indicated in our Guide showing costs with and without Parts B—generally about half the cost of the Part B premium, though this varies somewhat from plan to plan. Thus, either not joining or dropping Part B is not an irrevocable decision, and later rejoining Part B need not be highly costly. "

Valued Contributor
Posts: 988
Registered: ‎03-09-2010

Re: Retirement and health insurance costs

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?

Honored Contributor
Posts: 10,168
Registered: ‎03-14-2010

Re: Retirement and health insurance costs

Plans and prices vary from state to state, so what is available for you may be very different than ours....I would definitely shop around and compare prices before DH retires if you decide to switch to another plan.

Esteemed Contributor
Posts: 6,596
Registered: ‎03-10-2010

Re: Retirement and health insurance costs


@GraceCO wrote:

@shoesnbags wrote:

@GraceCO wrote:

@shoesnbags wrote:

@Carmie wrote:

@GraceCO   Good luck with that.  

 

Are you aware that you can switch back to Original Medicare, but will probably not be able to get or afford a Supplement Plan to go along with it?

 

You can switch to a different Advantage Plan during open enrollment with no problems every year, or choose to go to Original Medicare, but supplements are only available to you to purchase within 6 months of your Medicare Part B effective date. And if you want RX coverage with that, you will pay a high penalty to get it now.

 

Some insurance companies might sell you a supplement, but you will have to pay an extremely high rate to get it....if you can even find one who will.

 

You should have done your homework. It's a good thing you like your insurance, because you will have to live with it or another Advantage Plan of your choosing.


@Carmie 

Thank you for commenting.  This is what we were told by the senior insurance specialist we consulted, and it was the reason we chose Medicare with a supplement rather than an Advantage plan.  Didn't want to get locked into an option that was basically a permanent deal.  We wanted to preserve our options at this point. 


@shoesnbags 

 

It's not a "permanent deal"--you can switch from Medicare Advantage to a MediGap policy. If you remain in your current state, you may pay slightly higher premiums, but it may be worth it. For those who are moving out of state in retirement, they can switch to a MediGap policy, without penalty at all.


@GraceCO 

We were told that the Medigap plan premiums would be more than “slightly higher”. They would be significantly higher for someone switching from an advantage plan as opposed to someone choosing a Medigap policy as a first choice when going on Medicare.  Enough of a difference that switching wouldn’t  be a good option at that point.  Please come back and let us know what you find when you attempt to make that change. 


@shoesnbags 

 

Whoever told you that is incorrect--it depends on what state you live in and your health status. The premiums quoted to me are very affordable. And, I'm guessing you didn't know that moving to another state resets the timeclock on MediGap enrollment without penalty. Maybe with a little more research you and others will find there are more options to make a policy switch. 


@GraceCOOur information came from a senior health insurance specialist with 21+ years of experience.  We did our research before chosing our Medigap plan, and are happy with it, so no more need for us to look at other options.  Perhaps the differences we are seeing here do come from our being in different states. I wish you well in changing your plan - it's all so complicated, isn't it!

"Breathe in, breathe out, move on." Jimmy Buffett
Super Contributor
Posts: 385
Registered: ‎03-28-2019

Re: Retirement and health insurance costs


@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?


Unless you are receiving monthly pay increases, every working American is living on a fixed income.

 

Compared to 'other' medical plans Medicare is a Godsend for our family.

Respected Contributor
Posts: 2,253
Registered: ‎03-10-2010

Re: Retirement and health insurance costs

I am a retired Federal Government employee and urge you never to give up your plan. It is the best you will get for the money.

Honored Contributor
Posts: 18,604
Registered: ‎10-25-2010

Re: Retirement and health insurance costs


@Isobel Archer wrote:

@Carmie wrote:

@Isobel Archer   you can opt of if Medicare Part B without any penalty if you have creditable coverage from another source.  I am pretty sure the Federal Employee Plan is creditable.

 

It is very common for people not to have Medicare Part B when they have employee coverage either working or retired.  You can save a whole lot of money each year by opting out.


I think, according to the OPM website, that only applies while you are still working.  Once you are retired, you are subject to the penalty if you opt out and later decide to take part b.

 

You may be thinking of the prescription drug coverage - for which FEHB is considered creditiable coverage.

 

Here is more information on the pros and cons:  https://www.checkbook.org/newhig2/year19/advice/should-federal-annuitants-enroll-in-medicare-part-b-...

 

Specifically as to FEHB and opting out of Part B:

 

"If you do decide to drop (or not start) Part B you can join it later. But there is a 10 percent a year penalty if you later decide to join or rejoin. As a financial matter, however many years you elect to do without Part B, you will be money ahead for approximately the first five or six years after joining or rejoining (those who start out paying the higher income-tested premium well be much more money ahead). After that, the penalty will outweigh your earlier savings (except for those who were once above, but now fall below, the income-tested premium). If you never join or rejoin, you will (on average) save annually roughly the amounts indicated in our Guide showing costs with and without Parts B—generally about half the cost of the Part B premium, though this varies somewhat from plan to plan. Thus, either not joining or dropping Part B is not an irrevocable decision, and later rejoining Part B need not be highly costly. "


@Isobel Archer   You are correct, thanks for catching that.

 

I was thinking about Medicare Part B and not the RX coverage. You do not need Part B if you or your spouse working and the group health insurance is primary. but if you are retired you do. DEFRA/TEFRA laws define this.

 

 

Respected Contributor
Posts: 3,355
Registered: ‎03-09-2010

Re: Retirement and health insurance costs


@madzonie wrote:

Reiki604  -  will you still need to pay Medicare premiums in addition to your Plan F premiums?


Yes. I have to pay about $135.00 per month. I’m having them take it straight from my S.S. Plan F I have to pay monthly, so I’ll set up online banking to take care of it. I try to make things go as stressfree as possible.


'I refuse to engage in a battle of wits with an unarmed man'.......Unknown
Respected Contributor
Posts: 4,346
Registered: ‎05-19-2010

Re: Retirement and health insurance costs


@patbz wrote:

@I am still oxox :  As a previous poster mentioned, employees of the Federal Govt are subject to very different rules (including that some CSRS employees aren't entitled to Medicare-- as they didn't pay into it).  DH and I are both Federal retirees and have BCBS as our supplement.  It's not the cheapest alternative but we have high medical and prescription costs so that's what works for us.  Another factor is are you living in a rural location (you may be surprised: Santa Barbara is considered "rural"), this definitely affects the cost of your coverage.


@patbz  I retired (took early out) from the Federal Government almost 5 years ago. I started under CSRS and retired under CSRS after 36 years. I'm not on Medicare and won't be eligible for several more years. I know several people who retired under CSRS and are on Medicare. I never heard of CSRS retirees not being eligible.

 

I found this on the SSA.GOV website .....

 

If you stayed under the CSRS program after 1983, you still are not covered by Social Security. However, you are covered under the Medicare program because you pay Medicare taxes on your Federal earnings.

 

I remember paying the Medicare tax from my wages, I can't remember the exact amount. Currently employees pay 1.45% from their wages - that may have been the same amount I was paying too.

Respected Contributor
Posts: 2,764
Registered: ‎03-11-2010

Re: Retirement and health insurance costs

This is so very confusing to me!  But, I’m looking forward to getting on Medicare. Right now I pay $1160 a month single coverage. And deductible is $4500.