NEWSLETTER WEEKLY

RECAP – FEHB AND MEDICARE

We have discussed a sizable amount of information on the Federal Employees Health Benefit (FEHB) plan and its parallel to Medicare.  The FEHB plan covers the largest number of individuals in the world, including active and retired personnel.

The premium rates paid by employees for individual and family coverage is affordable in a highly competitive market.  Federal employees enjoy not only some of the best benefits available, but the best rates as well.

Premiums change annually, along with plan offerings; allowing employees to examine and evaluate their plans and plan affordability during open season.  Retirees participate in open season, the same as active employees, making changes and adjustments to fit their needs.

Many retirees carry health coverage of a higher-tier and cost to ensure all their health care needs are met.  FEHB, in many instances, include dental and vision, and of course, an unrivaled prescription drug plan. However, when federal employees reach the age of Medicare eligibility, Medicare and FEHB draw a strong parallel  – covering many of the same services.

Reaching the age of Medicare eligibility brings you to a good place to begin analyzing your FEHB health plan to determine if your circumstances merit looking into a plan with lower costs while providing a diversity of services. The reason being is that Medicare covers some of the same services offered by your FEHB plan.

As a retiree, your income may be slightly less than when you were an active employee.  As such you may want to streamline your expenses as much as possible to increase your available income.

By lining up side-by-side the services covered under both Medicare and FEHB, you can choose an FEHB plan that does not duplicare the services of Medicare; but provide all the coverage you need between the two.  This will enable you to choose an FEHB plan with a lower cost and save you money.

For example, FEHB prescription drug plan is among the best on the market, so Medicare Part D (prescription drugs) is not needed for most retirees when they have FEHB.

Medigap policies are generally entertained to close the gap between what your plan offers and what it does not.  Having Medicare and FEHB eliminate that concern.  Also, if you choose a Medicare Advantage Plan, there is also no need for a Medigap policy.

Educate yourself about the health care options available to you in retirement so that you get comprehensive health care coverage with little or no additional out-of-pocket expenes, while still saving money.

Retirement can be the best time of your life because you are in control of your time and the choices you make about what your life will look like in retirement.  Gather, analyze and assess all the information available to determine what fits your needs. Make sure you use your human resources office to receive and understand valuable information about your retirement options.  Educate yourself and your family and do something magnificent for yourself – RETIRE WELL.

P.S.  Always Remember to Share What You Know.