Very, very very sound explanation of a super complex topic. Thank you!

@Theretirementnerds

6 ай бұрын

Thank you so much!

Outstanding video with excellent information! Thank you, sir! You mentioned a term late in the video that all federal employees and retirees need to remember: suspend. When and IF the time comes, SUSPEND your FEHB.....DO NOT GET RID OF IT ALTOGETHER! Suspending your FEHB allows you (or your spouse if you pass away) to get that health care insurance benefit back again if you choose. Very important.

@Theretirementnerds

5 ай бұрын

Thank you!!

GEHA (a FEHB plan) has a Medicare Advantage plan that will reimburse you for your Medicare Premium up to $180/month. It costs about the same as basic GEHA.

Best video on the subject I’ve seen. Thanks.

@Theretirementnerds

3 ай бұрын

Thank you!!

Thank you for the information on Medicare benefits

@Theretirementnerds

6 ай бұрын

Thank you Eddie!!

I’ve been retired for 4 years & have Medicare Part A & FEHB. FEHB pays for drug coverage & pays for most medical expenses. Plus if you travel or live overseas Medicare won’t pay, but FEHB will pay. I am happy with my decision.

@Theretirementnerds

3 ай бұрын

Thank you for sharing!

@ConnieBach

3 ай бұрын

Blue cross blue shied is very picky in overseas even though they say they cover in overseas, they usually don't. I switched to foreign service benefit plan but more expensive than Blue. Thinking about switching back to Blue because of the plan cost but not sure.

@rickw3243

3 ай бұрын

@@ConnieBach I have travelled overseas & used medical facilities & Blue Cross has paid, & I know about other retired federal employees who live overseas with no problems.

My parents are enrolled in a FEHB plan plus Medicare parts A and B. They also enrolled in an additional medicare advantage plan specifically offered only for annuitants that have parts A and B and the high option health plan through NALC. They did this because they get unlimited therapy visits and lower prescription costs and a reimbursement of 75 per month each plus dental and vision coverage and other perks. Their premium is 480.54 per month plus the part B premiums. Yes, it adds up to a lot, but they never pay anything for medical needs except prescription drug copays.

@teeduck

3 ай бұрын

They’re paying around $7k year in premiums. Too much coverage

@karenaubin325

3 ай бұрын

@teeduck Yes, they pay a lot in premiums, but since both my parents receive multiple therapy visits each week, whatever they would save on premiums by getting a cheaper NALC plan or a regular Medicare advantage plan would be more than offset by their medical expenses on those plans. Even a $25 copay 3 times a week adds up!

Well this one didn't pertain to me, but I had to watch for the support aspect of it. I did learn a new word, "Annuitant" Great Job!

@Theretirementnerds

6 ай бұрын

You're the best! Annuitant is an interesting word to say out loud :) Thank you for your support!

As a postal retiree, the new PSHB give you a choice to volunteer to sign up for part B, if your already retired. If you go that route then you WILL have both the part B premium and the premium for your plan under the PSHB. Deciding to pay for 2 insurance premiums will give you almost 100% coverage where the PSHB plan will cover deductible, co pays & etc. But the additional cost needs to be figured if you want any large medical events that will result in more $ than the additional premium. Since we can't predict the future of our health, each person will need to decide if the extra premium is worth it, or take their chances & get stuck paying those deductible, co pays & etc. Lots to consider, a " catch 62".

@kathleenharsha6504

3 ай бұрын

I am also a Postal retiree and have listened to my insurers podcast on the subject. It is great coverage for them. Being secondary payer their cost is practically eliminated but there is no reduction in premium costs, making it a real money maker for them. What they don't really talk about is the drug coverage. One chemo treatment and you can hit your catastrophic out of pocket. Having Part B would be of no benefit in this scenario, just more out of pocket having to pay Part B premiums. Will I ever need chemo? Hopefully not. I remain conflicted- take Part B or not.

@JanetVaughn-cm3et

3 ай бұрын

@kathleenharsha6504 Yes, it's a " sticky" situation. Drugs are handled just like they are now, you have a copay. Yep, you pay all that premium & drug cost is Not any lower with part B- go figure! WAY too much $ & the insurance company makes out like bandits. Only on things medicare doesn't pay will the PSHB pay,plus co-pays, deductibles & etc that medicare doesn't cover. My game plan is get part B, then during open season sign up for a medicare advantage plan with no monthly premium & SUSPEND the PSHB. You would still have co-pays, but of your not too sickly those are FAR cheaper than a high premium from PSHB is surely going to charge. I would use that $ to pay as I go for co-pays, deductible & etc. Surely it will be less than a set monthly premium. This is just for my 1st year. Will see how it goes. Then can always change back to PSHB & drop the medicare advantage plan next time around. That's if you find your needing more care/surgeries and etc. I refuse to pay double premiums at the start until I see how this works out. Getting part B penality free is a good thing I believe. Who knows, down the line the PO may decide not to offer health insurance to retirees and only to working employees. Another stab in the back & if you didn't get part B, you are left with NO insurance at all. In the marketplace it would be unaffordable for me. So, all premiums will go up & we will just have to adjust. At least I would have part B and could get a medicare advantage plan every year. Without part B, you can't do that. Do the research on what medicare advantage plans will be available to you. Try for a 0$ monthly rate, then you will only pay the part B premium. The PO really threw all of us under the bus here, so no answer is perfect & everyone needs are different. For now that's my plan. Hope this helps !

What about PSHB?

Good job and well done. I do believe however that the rate at which you spoke awas a tad tad bit too fast

@Radmando5

12 күн бұрын

In the video settings, change "Playback Speed" to 0.75 if you want to hear him speak more slowly.

I'm glad I'm not a retired federal employee. This sounds very complicated - more than regular Medicare is. I did work for the Social Security Administration from 1982 - 1985. I got out of there pretty quickly.

@Theretirementnerds

6 ай бұрын

There are pros and cons for sure :) Had to call SSA to stop benefit payments to my mom. Estimated wait time... 1 hr 10 minutes...

@tomm7505

6 ай бұрын

@@Theretirementnerds Ugh -- typical. When my mom passed away in 2013, the funeral home required us to supply her SSN and my deceased father's SSN (since she was receiving widows SS benefits under his SSN). They said that they are required by the government to report the deaths of people receiving SS benefits. We did have to notify every other entity -- her Medicare supplement co, her pension company, etc.

@Theretirementnerds

6 ай бұрын

@tomm7505 I've heard this now from multiple people. The Mortuary people we worked with didn't do this for us, so super confused on how that works. They gave us a paper and phone number to contact SS and I took that on instead of my siblings. Would've loved to have them do it for us.

@carlsanders7824

3 ай бұрын

Be ASSURED, that the changes made ONLY to Postal retirees will result in most of them getting shafted. I worked for them for over 35 yrs, and have never seen them do anything to help their employees.

@teeduck

3 ай бұрын

@@carlsanders7824 then why work there?

Will the FEHB become like part B after part A?

I am a retired federal employee, and have Medicare A and B, as well as FEHB. This year, I received a notification that I would be enrolled in Medicare Part D or could opt out. I opted in. In this instance, the Medicare Part D program for prescriptions overrides the FEHB prescription plan. It is of no extra cost to me. I find this works out well for me, as my income as single is under the $103,000, so my Medicare premium is $174.70 monthly. My question is, since I now have Medicare Part D at no cost, and it overrides my FEHB prescription plan, why is my FEHB premium the same amount? If I can’t use the FEHB prescription plan because I now have Medicare Part D, shouldn’t my FEHB monthly premium reflect a reduction for no longer covering prescriptions? Or is the reason why the Medicare Part D is no cost to me because I’m already paying for it in my FEHB premium? If this is so, is the $ portion of my FEHB plan that is for prescriptions somehow being transferred to Medicare Part D. And if not, then people paying the same FEHB premium as if they have the prescription coverage, are overpaying, no?

This is an upcoming stressful decision for myself as well. Have been researching it for more than a year. On the one hand FEHB coverage is good, but premiums are high. Doing “Medicare part B + a quality supplemental plan G + annually shopping the best overall part D plan” instead of “FEHB + Medicare B” appears to have a lower overall premium with about the same out-of-pocket, and lower drug cost. But if one walks away from FEHB, they can never get it back. From my research, it looks like the FEHB plans are more expensive than doing a combination Plan G supplement and part D plan. What am I missing?

@JanetVaughn-cm3et

3 ай бұрын

Only problem with your theory, the Po (opm) will not allow you to get a supplement, only a medicare advantage plan. If you insist on a supplement, you Must cancel your fehb/ pshb & you will not get the penalty waived to sign up for part B. You will pay the full amount plus any penalty you may incurred for the rest of your life. Yes supplement &drug plans ARE definitely cheaper, but they won't let you do it that way. So be very careful what & how you choose

@ggjr61

Ай бұрын

That’s what I wonder. Everyone talks about how wonderful FEHB retirement insurance is but several of the major insurance plans offered don’t coordinate with part B drugs and at least the BCBS doesn’t fully coordinate with skilled nursing either. The drug formulary appears to be better than most part D plans though.

@jrasterback7826

Ай бұрын

The one part you got wrong is that you can get your FEHB back if you suspend it instead of walking away.

@JanetVaughn-cm3et

Ай бұрын

@CouchFamilyUSA You also cannot get a supplement plan + drugs plan and keep your fehb. FEHB only let's you SUSPEND their plan to join a medicare advantage plan. So you SUSPEND fehb & join a medicare advantage plan in your area that has a 0 monthly premium. These will only be offered OUTSIDE of ANY plan the PSHB will offer. Then you just have part B premium to pay & 0 premium for the advantage plan you select. Just SUSPEND your fehb so you CAN get it back in the future if you need to.

@charlesdavaro8554

23 күн бұрын

Your missing that two FEHB plans/ Blue cross basic & Aetna give you money back every year to supplement you Medicare payments I think it’s $900 a person Once you leave the FEHB plans your done

Related..... But not Medical... Can anyone comment on availability for adding spouse on ( federal) life insurance ( at time of application to retire?) ... Obviously.. rates wont b cheap . But ... Is the option there ? ...

My wife and I are 47. She is a federal employee. When the times comes i want her to enroll in MA only and get Part D from FEHB. How does that sound? Great video. Thanks

@Theretirementnerds

3 ай бұрын

Definitely an option. She will need to be enrolled in Medicare Part A and B to get an MA-only plan, so you'll have that Part B premium to consider, but that is definitely a route you can consider.

@Roslyn111

Ай бұрын

Advantage plans will have changed dramatically by the time you retire, so you probably want to revisit your decision. Currently, Medicare Advantage can be difficult for people with any type of chronic or critical illness because Medicare Advantage requires preauthorizations on procedures & medications. This means you have to wait until the insurance company approves these things which can take weeks or months. Also, Medicare regulations change every year so you really need to be on top of things when you're about to become Medicare eligible.

Can i include my child when I retire 0:08 in my FEHB without election of survivor anuity?

Ive read dozens of opm and professional advisor articles on fehb/medicare when you reach age 65. My conclusion, medicare b is not necessary. Dont forget, even with a fehb plan that reimburses you for the partial amount of medicare b premium, at a minimum, you will be paying $1100 more in premiums each year if you take medicare b. That amount will cover alot of copays/coinsurance with just your fehb plan. My policy has a $5000 catastrophic max, and Im ok with that.

@Theretirementnerds

6 ай бұрын

Well said!

@jrasterback7826

Ай бұрын

You forgot that a future Congress could decide to limit or even eliminate FEHB coverage for retirees.

As far as I’ve been able to tell most FEHB retirees plan’s don’t coordinate with Medicare on part B drugs which if I understand it correctly means they’re not covering the part B 20% coinsurance. They are starting to offer part D plans as part of the retirement policies if you’re signed up for part A&B.

@SandfordSmythe

3 ай бұрын

Is this the automatic switch in the Drug plan to a Medcare one, unless you wanted stay in the old one and fill out paperwork. It's supposed to be better, but I don't know yet. They will reject many of your drugs unless your doctor asks for authorization.

@ggjr61

Ай бұрын

@@SandfordSmytheyes but you usually need pre authorization on the regular drug formulary too.

So I am Retired Military and currently working for Federal Government. So I get Medicare Part A and count on TRICARE for part B?

@Theretirementnerds

3 ай бұрын

So if you are doing Tricare for Life, you need to get Part A and Part B. VA only is different. If you have access to Tricare for Life, take Medicare A and B and then TFL

I'm turning 62 this Summer. Retired Postal Worker with FEHB that will become PSHB come January 1rst, 2025. Am I required to take Medicare Part B when I turn 65 ? If I take Social Security at 62 am I required to have Medicare Part B ? Thanks

@Theretirementnerds

3 ай бұрын

Thank you for watching. 1. Yes, the changes for Postal Workers will require Part B. 2. If you take Social Security at 62, you will automatically be signed up for Medicare Part A and B at 65. You can proactively decline Part B if you want, but it sounds like you'll want to keep that one going with your PSHB.

@JanetVaughn-cm3et

3 ай бұрын

Yep, you have to get it--- like it or not !!

I wasn’t aware that that I had to cancel FEHB in order to get Medicare Supplement coverage. In other words, this means that a person with FEHB cannot suspend FEHB and have Supplemental coverage. Can I suspend Medicare and only have FEHB?

@JanetVaughn-cm3et

Ай бұрын

No, you cannot suspend Medicare

I think you made a major error at the 4:15 point in the video which you later repeated 10:50 point. If an indiviual is enrolled in the FEHB he/she is enrolled in one of the insurance plans offered by a major insurance company. These companies include BCBS, UHC, Aetna etc. The plans are PPOs and HMOs and they all have networks. You make the statement that if an indivual with an FEHB plan enolls in A and B they have access to any provider that participates in Medicare. This is inaccurate. The networks (and the restrictions) do not change.

@Theretirementnerds

5 ай бұрын

Hi Keith, thank you for watching and pointing this out. First, there are some semantics involved here. Second, we could've been more clear in the video, for sure, so for that I apologize. On the semantics side, even with an HMO or PPO FEHB plan, the annuitant still has access to any provider or facility that participates with Medicare with their Part B coverage. Whether or not what Medicare does not cover is paid for by the FEHB plan absolutely depends on what you mentioned - which FEHB plan does the individual have. If someone were to have just the FEHB HMO plan as an example, and no Part B, and that individual visits an out of network provider - they would be liable for the full bill. If that same person had Medicare Part B as well, they would at least have the Medicare coverage of 80%. Hopefully that helps. Totally understand what you're saying and agree that we could've said that better. Thank you!

How do we find you?

@Theretirementnerds

6 ай бұрын

My email is erik@90daysfromretirement.com Feel free to send me an email. I'll just need to know what state you're in 🙂

Many retirees believe their fehb coverage changes at age 65. That is false, but there could be a change in how you are billed as discussed in: 5 CFR Part 890 Subpart I -- Limit on Inpatient Hospital Charges, Physician Charges, and FEHB Benefit Payments. Hospitals, physicians cannot bill you more than the amount that medicare would approve, provided the hospital/physician takes medicare. You will get indirect medicare benefits by not even having medicare. Your coinsurance might even be less if you are billed at the medicare rate, which is usually lower. Its a different story if a provider is a medicare opt out.

You said you can't think of a reason to not sign up for part A. If you are enrolled in any part of Medicare (even just part A), you are not eligible to contribute to an HSA. Therefore, in 2024 a federal employee who signs up for part A would not be eligible to contribute $8300 (family limit) into an HSA. Many feds will be in the current 22/24% tax bracket due to their pensions. That is an opportunity cost of nearly $2000 for some feds. Don't forget that HSAs do not have earned income requirements, so a fed can lower their tax bill by contributing to the HSA even without W2 income.

@Theretirementnerds

2 ай бұрын

This video is specifically for those who have retired. Are retired federal employees taking HSA retirement plans?

@kenb2145

2 ай бұрын

@@Theretirementnerds Thats the point, yes they can. It is a consideration in choosing a FEHB plan. You can continue with a HDHP plan and contribute to a HSA in retirement. In fact, you can do it with TSP (fed 401k) funds so that it is super charged "Roth" style conversion. Because it is an HSA and not a Roth, you save twice on taxes. Don't get me wrong, I have no idea if anybody's actually doing this, but it is possible. It is an obscure reason for choosing to delay Medicare part A.

my medicare + Geha high = no bills

# 4 should not even be discussed. It just confuses people

@SneakersDD

20 күн бұрын

@@charlesdavaro8554 I believe it should be there as an option. He did mention it as an unpopular option. Thank you for the video.

You may be wrong ... Medicare allows those "annuitants" that wish to keep FEHB coverage - instead of signing up for "Part B" - to NOT INCUR the 10% penalty per year if at some point in the future that person decides to switch from FEHB to Part B. This is an allowed exception where as long as Medicare is notified that the person is keeping (and paying for) FEHB coverage then deferring enrolling in Part B at a later day does not incur any penalties ... may want to revisit your research and correct your video if warranted.

@Theretirementnerds

6 ай бұрын

Hi there, thank you for watching and your support. Unfortunately, this isn't how we understand it, nor is it our experience, and it's also not how OPM defines it. Remember, we are talking about Retired people with FEHB and they qualify for Medicare... "Annuitants." What you are referring to are those who are still working (or their spouse is), have FEHB, and are Medicare eligible. This is different, and yes, once you stop working if it's after 65, you do have a special enrollment period with no penalty. Here is what OPM has to say: www.opm.gov/healthcare-insurance/healthcare/medicare/medicare-part-b-coverage/ *What Happens If I Don't Take Part B as Soon as I'm Eligible?* If you do not enroll in Medicare Part B during your initial enrollment period, you must wait for the general enrollment period (January 1- March 31 of each year) to enroll, and Part B coverage will begin the following July 1 of that year. If you wait 12 months or more, after first becoming eligible, your Part B premium will go up 10 percent for each 12 months that you could have had Part B but didn't take it. You will pay the extra 10 percent for as long as you have Part B. If you didn't take Part B at age 65 because you were covered under FEHB *as an active employee* (or you were covered under your spouse's group health insurance plan and he/she was an active employee), you may sign up for Part B (generally without an increased premium) within 8 months from the time you or your spouse stop working or are no longer covered by the group plan. You also can sign up at any time while you are covered by the group plan. Hope that helps! It's an important topic for sure!

@BRFRGF

5 ай бұрын

@@Theretirementnerds Yes, @VirtualJohnDoe is indeed mistaken. I'm a federal employee with USAF approaching retirement. The WAIVER of the 10%/year-of-delay after initial eligibility penalty regards current FEHB enrollees who remain actively employed beyond the age 65 initial eligibility period as you state. In fact I know of an individual who retired, did NOT pick up Medicare B when first eligible, then later paid the penalty to enroll.

@Theretirementnerds

5 ай бұрын

@@BRFRGF thank you for confirming!

@JanetVaughn-cm3et

3 ай бұрын

Yes, your wrong about that, but it's been clarified in another response. Be careful what you do in the end

@johnskillman2035

2 ай бұрын

So as a 67yo retiree covered under my wifes FEHB, with part A only for now, I will be good until 8 months after her retirement to be able get part B without penalty is the way I understand it.

You’re overthinking it all.