The answer: yes! FEHB coverage is comparable to Medicare coverage . Therefore, beneficiaries in the federal program may delay joining a Part D plan; likewise, they're exempt from any Part D late enrollment penalties.
Can I keep FEHB with Medicare?
FEHB premiums are not reduced if you enroll in Medicare , but having Medicare Part A and B can allow you to switch to a less expensive version of your current FEHB plan, because some FEHB insurers waive cost-sharing (like deductibles, co-pays and coinsurance) when you have Medicare Parts A and B.
Is Medicare Advantage better than FEHB?
Most MA plans are comparable to FEHB plans in hospital and medical benefits , but the prescription drug benefits will not be as good as in the FEHB program because the plans have a “coverage gap” where you are responsible for all or most drug costs until you reach a catastrophic limit.
Do most federal retirees take Medicare Part B?
About 70% of federal retirees enroll in Part B , which means paying two premiums and in essence two duplicative insurance programs. A portion of the retirees that join Part B might do so as a hedge against the elimination of FEHB retiree benefits.
Are federal retirees automatically enrolled in Medicare?
If you are retired and receiving Social Security you will automatically be enrolled in Part A and B and should receive your Medicare card three months before your 65th birthday.
Is Medicare primary or secondary to FEHB?
Impact of Medicare and FEHB
Generally, if you have Medicare and you (1) are age 65 or older and (2) are not employed in the federal service, Medicare is the primary payer of your health benefits expenses, and your FEHB plan is the secondary payer .
What is the difference between FEHB and Medicare?
Even without the cost-sharing waiver, having both FEHB and Medicare would mean you only have to pay the difference between what Medicare and your FEHB plan pay and Medicare's limiting charge. If you have FEHB and Part A but not Part B, Medicare is primary for Part A services, and FEHB is primary for other services .
Is Medicare primary or FEHB?
Which Plan is Primary? Since you are retired but covered under your working spouse's policy, your spouse's policy is your primary coverage . Medicare will pay secondary benefits and your FEHB plan will pay third.
Should I keep FEHB when I retire?
As a rule, at retirement you may keep your Federal Employees Health Benefits program coverage if you are currently enrolled and have been enrolled in the FEHB for at least five years or from your earliest opportunity to enroll . It makes no difference if you've bounced around from plan to plan.
Is BCBS federal primary to Medicare?
When you're an active federal employee, the Service Benefit Plan is typically your primary coverage, which means we pay for your healthcare services first. When you retire and have Medicare, it typically becomes your primary coverage and they pay first .
What is the Medicare Part B penalty?
If you didn't get Part B when you're first eligible, your monthly premium may go up 10% for each 12-month period you could've had Part B, but didn't sign up . In most cases, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part B.
Are CSRS retirees covered by Medicare?
Those who chose to remain in CSRS are still not covered under Social Security and are not eligible for SS retirement benefits. But they do qualify for Medicare through taxes paid on federal earnings .
What is federal Medicare?
Medicare is the federal government program that provides health care coverage (health insurance) if you are 65+, under 65 and receiving Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and with End-Stage Renal Disease (ESRD).
Is Medicare Part A free?
Medicare Part A (Hospital Insurance)
Most people get Part A for free, but some have to pay a premium for this coverage . To be eligible for premium-free Part A, an individual must be entitled to receive Medicare based on their own earnings or those of a spouse, parent, or child.
Is FERS income taxable?
Your CSRS or FERS Pension will be taxed at ordinary income tax rates . Now – you will get your contributions back tax-free (since you already paid taxes on the money when it was taken out of your pay check).
Should I get Medicare if I have private insurance?
If you have private health insurance, you can still use Medicare services . There are times when you can claim Medicare benefits and use your private health insurance at the same time. For example, if you go to a public hospital as a private patient, you may be able to claim: from us for the costs we cover.
Can you drop Medicare Part B anytime?
You can voluntarily terminate your Medicare Part B (medical insurance) . However, since this is a serious decision, you may need to have a personal interview. A Social Security representative will help you complete Form CMS 1763.
Do federal employees get Social Security?
Federal employees first hired in 1984 or later are covered by the Federal Employees' Retirement System (FERS). All federal employees who are enrolled in FERS pay Social Security taxes and earn Social Security benefits .
What insurance do federal employees have?
Program Description
Federal Employees Health Benefits (FEHB) Program http://www.opm.gov/healthcare- insurance/healthcare/ FEHB provides comprehensive health insurance. You can choose from fee-for-service plans, health maintenance organizations, consumer-driven plans and high deductible health plans.
Can federal employees use copay cards?
Yes. OPM does not prohibit FEHB members from participating in pharmacy-sponsored incentive or pharmaceutical company co-pay reimbursement programs , and we are unaware of any Federal laws restricting participation.
Is FEHB creditable coverage?
Because all FEHB Program plans have as good or better coverage than Medicare, they are considered to offer creditable coverage . So, if you decide not to join a Medicare drug plan now, but change your mind later and you are still enrolled in FEHB, you can do so without paying a late enrollment penalty.
What is Medicare Part C called?
Medicare Advantage Plans , sometimes called “Part C” or “MA Plans,” are offered by Medicare-approved private companies that must follow rules set by Medicare.
Is Medicare always primary for retirees?
You can have group health plan coverage or retiree coverage based on your employment or through a family member. After the coordination period ends, Medicare pays first and your group health plan (or retiree coverage) pays second .
When did federal employees start paying Medicare?
The Social Security Act was amended and as of January 1, 1983 , federal employees were required to pay toward the Medicare Part A FICA tax.
Is Medicare Part B required?
Part B is optional . Part B helps pay for covered medical services and items when they are medically necessary. Part B also covers some preventive services like exams, lab tests, and screening shots to help prevent, find, or manage a medical problem. Cost: If you have Part B, you pay a Part B premium each month.
Does BCBS FEP cover Medicare Part B deductible?
Each member of a Basic Option plan who has Medicare Part A and Part B can get reimbursed up to $800 per year for paying their Medicare Part B premiums .
