FEHB
FEHB or the Federal Employee Health Benefits is a program that covers the health insurance and benefits of the federal employees.
Health Care and Retirement
Health Care and Retirement
When we talk about all of the things that might change for us in retirement we know that health care is right up there at the top. As we advance in years, health care is all that much more important, we might need more frequent tune-ups, our engines might need to be checked a little more often and our radiators might need to be flushed a few more times a year than before. All in all, our visits to health care professionals might increase.
Most of us will spend perhaps another 30 years in retirement after we leave our jobs behind. What will the majority of our money be spent on? That question will be answered differently in retirement than it is answered during our work careers. Most of us will spend less on clothing and transportation unless we take on another job that resembles the job we left in terms of hours spent on the job and the cost of health care almost certainly going to become a larger part of our annual expenses.
We might spend more in food perhaps not in quantity but quality. As we age we might want to buy more health conscious foods which can sometimes cost more. But inevitably, we will spend more on health care to keep ourselves up and running so that we can enjoy our retirement years.
There has been some talk about whether the Affordable Care Act (ACA) will cause workers to have to work longer in order to pay for their health care costs. Remember, federal employees and postal workers are members of one of the largest workforces in the world. Those stats alone entitle you to some great bargaining power, you’ve got leverage, you’ve got clout. Trust me, your insurance costs are never going to rise to the level of determining whether you can retire or are forced to work to pay for your premiums.
You have perhaps the best coverage around via your Federal Employee Health Benefits (FEHB). You don’t have to worry about purchasing gap insurance. When you become eligible for Medicare, hold on to your FEHB because when you do your health care premium will be a worry that is way at the bottom of the list. The extra bonus is that you will be fully covered and in most cases with not a penny coming out of your pocket.
Know what you have and the value of your health care benefits. Know how your benefits work so that you don’t get caught up in the hype of the Affordable Care Act causing you to have to work longer to afford your health care. When it comes to your health care and retirement, know what you have and how it works so you are not taken by slight of hand.
P. S. Always Remember to Share What You Know.
RELATED HEALTH CARE ARTICLES
FEHB and the Affordable Care Act
FEHB Policy Changes
Policy Changes to FEHB
The Federal Employees Health Benefits (FEHB) policy changes may impact you or someone you know. In accordance with Section 3 of the Defense Marriage Act (DOMA), if you already have Self and Family election, your legally married same-sex spouse and your eligible children, including stepchildren, under age 26 are covered effective immediately upon notification from the covered employee to his or her Federal Employees Health Benefits (FEHB) carrier of the newly eligible family member(s).
FEHB Elections
If you are not enrolled or if you elected FEHB ‘Self Only’ or you wanted to change coverage options altogether you can make the changes as a FEHB Qualifying Life Event, whereby you have 60 days from the effective date of the policy change to do so. The coverage change includes your same-sex spouse, your children – including stepchildren who are under 26 years of age.
This policy change actually became effective June 26, 2013, as such the effective date for a newly eligible child would be the beginning of the pay period for the qualifying life event (QLE). The effective date of coverage could not have been prior to June 26, 2014, and is applicable to employees who already had Self and Family election.
For Postal Employees, enrollment changes are effective the first day of the first pay period after PostalEASE FEHB worksheets are received by the Shared Service Center in the Office of Human Resources (Access your LifeBlue account HERE). Postal employees desiring to make enrollment changes must always complete the PostalEASE FEHB worksheet which can be found on LiteBlue or you can notify the Shared Service Center via phone on 877-477-3273; TTY 866-260-7507.
It is important that we revisit policy changes in our benefits so that we will have a clear understanding of the extent of coverage both to ourselves and our families. The most important aspect of the policy change to remember is that the changes don’t just happen automatically, the covered employee must initiate the change to cover eligible family members. If you are not sure when changes to your coverage can be made contact your Human Resources Office for guidance. Also remember, any changes to your benefits coverage can always be made during Open Season.
P.S. Always Remember to Share What You Know.
To see how LiteBlue helps Postal employees manage their FEHB click HERE.
Is Divorce a Qualifying Life Event (QLE) and how does Divorce Affect Retirement
Health: How is Yours?
How is your health?
I hope your health is good. 
There is one way to make sure you stay healthy in retirement – have regular visits to your health care providers. If you are going to have those regular visits, then you will need some mechanism to pay the provider.
If you retire before reaching eligibility for Medicare (age 65) you will have your Federal Employees Health Benefit (FEHB) to take care of your health care needs. But what happends when you qualify for Medicare? I have been having some conversations of late with federal employees that sound like this. “I can’t wait until I get my Medicare card so that I can drop my FEHB.” Not a good conversation to have because in order to have the absolute best health/medical benefit possible, you need your FEHB and Medicare.
It is useful to reiterate that Medicare only pays about 80% of the coverage you will need. In order to cover the other 20% and to avoid out-of-pocket expenses, you will need some kind of a medicare supplement. The good news is that you don’t need to purchase a supplement, you already have one that costs you the same amount you paid as an active employee. You get the same great rates because you remain a part of the federal and postal workers group. Together with FEHB and Medicare, you have all the coverage you will most likely ever need. When you become eligible for Medicare don’t drop your FEHB because you still need it.
Many indviduals who work outside of the federal sector don’t have this luxury. For example, individuals who worked for the Railroad lose their company health benefits once they become eligible for Medicare. Federal and postal workers get to keep their health insurance for the rest of their lives and what a bonus that is (postal employees can view their FEHB elections through LiteBlue).
Whenever in doubt about what you should do concerning any of your benefits take time to visit your Human Resources Office so that they can help you understand how your benefits work in retirement.
P. S. Always Remember to Share What You Know.
Federal Employees Health Benefits (FEHB) and the Affordable Care Act
FEHB and Affordable Care Act
Getting health care coverage has been a huge topic across the airwaves for many months. Although it is reported that a large number of Americans now have some form of health care coverage, there are still a lot of unanswered questions about what the Affordable Care Act (ObamaCare) Marketplace means for Federal and Postal employees and how it will impact their decision about the Federal Employees Health Benefits (FEHB) they are eligible for through their employer.
Federal and Postal employees are covered by the Federal Employees Health Benefits (FEHB) program. They have the opportunity to choose from a number of plans that fit their individual and family needs. Every Federal and Postal employee is eligible for health coverage via FEHB if they so choose. Employees do have the option to waive FEHB coverage because many federal employees may be covered by a spouse’s plan. There may also be a situation where both spouses are federal or postal employee and only need one spouse to carry the coverage.
The Affordable Care Act ‘Marketplace’ was designed to offer health insurance at affordable market rates to citizens who were not covered by a health plan. The Marketplace was never intended to replace FEHB for Federal and Postal employees. If you are a Federal or Postal employee, there is nothing wrong with listening to how the Marketplace is impacting the lives of many Americans who thought health care coverage would never become a reality; but that is about as far as it goes. Federal and Postal employees do not have to take any action when it comes to their health care coverage relevant to the Marketplace and in fact would likely be receiving a far inferior plan at a significantly higher cost by switching.
As a FERS or CSRS employee you have been eligible for FEHB covereage since before the Marketplace and you are still covered by FEHB after the Marketplace. As it stands, Federal and Postal employees have one of the best health care programs around – If you’re eligible for Federal Employees Health Benefits DO NOT give up your coverage without very serious consideration.
P.S. Always Remember to Share What You Know.
For more information on FEHB and Postal employees read this
For information on how your retirement election can impact your spousal FEHB coverage read this
Federal Retirement: Getting Ready
Getting ready for federal retirement means putting plans in place for perhaps one of the biggest transitions you will make in your life. Some things you should consider if you are planning to retire in 5 years.
• Have a Federal Employee Benefit Analysis performed.
• Ask your employer exactly what they can do in terms of helping you with your retirement planning. If they can’t do what you need – find a knowledgeable financial professional that can help you.
• Begin a planning process.
• Find out the process for keeping your FEHB (health benefits) after you retire. Make sure that any FERS or CSRS Annuity decisions that you might be comtemplating won’t negatively impact your spouses FEHB eligibility.
• If you have not met the 5 year requirement to take your health insurance into retirement, check with OPM to see if the requirements can be waived.
• Compare the costs of your FEGLI (life insurance) against the cost of an individual policy (you might be pleasantly surprised how much you can save).
• Review your electronic official personnel folder (eOPF) to make certain all military and civilian service is recorded.
• You should also ask for a ‘Request for Earnings and Benefit Estimate Statement (Form SSA-7004-PC) – Social Security.
• Read up on the provisions of the Government Pension Offset.
• Make certain you are well briefed on the Windfall Elimination Provision.
P. S. Always Remember to Share What You Know.
Phased Retirement Plan – Other Provisions
Phased Retirement Plan
Currently both CSRS and FERS employees may use unused sick leave to add to their years of service, but not towards eligibility for their Phased Retirement plan.
Unused sick leave cannot be used in computing the Phased Retirement annuity. Upon full retirement, however, unused sick leave will be considered and its value will be the same as individuals retiring from full-time employment in the federal service.
Employees who opt to participate in Phased Retirement plan may return to full-time employment upon agency approval. When returning to full-time employment, the Phased Retirement plan annuity will cease.
When the individual retires, the retirement will be calculated under the current law in effect at the time and the phased period of retirement will be treated as part-time. Individuals returning to full-time employment may not re-enter the Phased Retirement Program.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Phased Retirement – Survivors Benefit
Phased Retirement
The Phased Retirement program as it stands provides no survivor benefit based on the proposed Phased Retirement annuity.
However, if the employee dies prior to full retirement, survivor benefits will be the same as an employee who dies in service. Some minor adjustments will be made as the special structure of the Phased Retirement program dictates.
Although the Phased Retirement period will be treated as part-time when computing the survivor annuity, the basic Employee Death Benefit will be based on the full-time earnings of the employee’s position. Remember to stay up to date on the current information to ensure your retirement is comfortable and secure. There is no such thing as ‘over-preparation’ when concerning your retirement. Be sure to utilize the links at the bottom of this article to ensure you have a solid understanding of the topic. Individuals under special retirement conditions such as mandatory retirement may not participate in the Phased Retirement program.
P. S. Always Remember to Share What You Know.
OTHER RELATED ARTICLES
Phased Retirement – Who Can Participate
Who can Participate in Phased Retirement?
Phased retirement is a voluntary program where both employee and employer must mutually agree to be a part of the program. There are some conditions that exist both for CSRS and FERS employees. Each group must have had full-time work status for three years prior to participation.
CSRS employees must be eligible for an immediate retirement annuity. The years of creditable service must be at a minimum of 30 years and an age of 55 or 20 years of service with an age of 60.
Under FERS similar conditions must exist. The individual must be eligible for an immediate annuity with 30 years of creditable service and a MRA of 55-57 based on the year of birth or 20 years of creditable service and 60 years of age.
As with any program or service impacting your retirement future, it is very important to clearly understand all provisions, rules and regulations. Further it is your responsibility to analyze each situation to see if it is a good fit for you and your family.
P. S. Always Remember to Share What You Know.
RELATED ARTICLES
Phased Retirement – The Process
The Phased Retirement Process
Should Phased Retirement be implemented, instead of a retiree entering into full-time retirement, the retiree opts to work a part-time basis while actually being retired on a part-time basis. The potential, however, with the existing backlog of retirement applications and ‘brain drain’ that could hinder some Agencies from doing their job, this ‘opt-in’ basis may not be as voluntary as we all would like.
As it stands, the amount of the retiree’s annuity would be calculated as if a full-time annuity, then it would be divided by 2 or split in half giving the part-time retiree virtually half of their retirement. Let’s remember OPM’s Phased Retirement remains at the moment a work in progress.
The Phased Retirement annuity is paid as half given the current scenario, while the individual also receives pay for a half-time schedule. When the individual participating in the Phased Retirement fully retires there will be a recalculation done. The computation will be as if the individual had been employed full-time divided by two before adjusting for survivor benefits if applicable.
After arriving at that amount, it would then be added to the original phased annuity with the combined amount providing the basis for the survivor annuity adjustments and benefits. During the period worked in phased retirement, OPM proposes that the lifetime retirement income will increase as a result of the impact on length of service.
Phased retirement considers a full-time and part-time work scenario that would increase the benefit more than what would have been realized if the individual had retired fully without the benefit of phased retirement. However, that scenario is less than if the individual had simply continued working full-time during the Phased retirement period.
P. S. Always Remember to Share What You Know.
OTHER PHASED RETIREMENT RELATED ARTICLES
Explanation of Phased Retirement
FEHB Is Catching Up – Self Plus One
FEHB – Self Plus One
For a number of years as the Director of Human Capital for a private concern, I was constantly working with my Benefits Manager to save our employees money while designing a highly competitive benefits package. One year we decided to overhaul most of the FEHB benefits program because it was not answering the call and concerns of a majority of our workforce.
Many insurance carriers were invited to showcase their menu of insurance services and the best fee offer for the organization. We had a relatively young, highly educated workforce. Many were thinking about beginning families and of course, another population already had growing families. The one item I was looking for that would seal the deal was a carrier who could offer something other than a ‘self’ and ‘family’ option. I wanted a plan that could cover self and spouse, but most importantly, parent and child or parent and X number of children that did not necessarily rise to the high cost of covering a family.
Household structures have been changing for a long time and most of the insurance industry has not made the adjustment to accommodate the change, most notably in the federal government.
Good news is here. The Office of Personnel Management (OPM) announced that beginning in 2016 federal employees and retirees will have the option of self-plus one coverage through the FEHB. Bringing this additional option choice to the federal workforce will save money for employees and the government. The move also underscores how OPM continues to seek out the best benefits for the largest workforce in the world.
P. S. Always Remember to Share What You Know.
Retirement Planning: Critical Ages
It is a personal decision to decide when to retire but there are some age-based considerations that will help to guide federal and postal employees when planning and making retirement decisions. Retirement planning can never take place too far in advance.
The rule of 5 is important in the Federal Service (FEHB for instance). Generally speaking, if you have worked for at least 5 years you may be entitled to a number of benefits.
In addition, the chart below illustrates some important age-based considerations for your retirement planning.
Age 50
• Begin age-based catch-up to defined contribution plans and individual retirement accounts (IRA). Beginning with the year you reach age 50, federal law allows for the deferment of a certain dollar amount per year to a qualified defined retirement plan. The catch-up amount is $5,000, indexed in $500 increments. The age-based catch-up amount for IRA contributions is $1,000.
Age 55
• After separation from service, you may begin withdrawing from a qualified plan without paying a 10 percent penalty.
Age 59.5
• You may begin withdrawing from qualified retirement plans, if retired or from an IRA without incurring the 10 percent penalty.
Age 62
• You can begin receiving your Social Security benefits; however, the amount may be reduced by as much as 30 percent, depending on the date of your birth.
Age 63.5
• The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) law makes health insurance in most employers’ group health plans available for at least 18 months after separation; however, you bear the full cost, including the portion previously paid by your employer (plus a small administrative fee). Upon reaching age 65 and you enroll in Medicare Part B, federal law requires access to Medigap health insurance at standard rates. Combining COBRA and Medigap effectively ensures access to health insurance beginning at age 63.5.
Age 65 – 67
• Depending on your date of birth, you may begin receiving unreduced Social Security benefits without being impacted by earnings limits.
Age 65
• You may enroll in Medicare, if eligible, and by keeping your FEHB coverage, you will have sufficient coverage in retirement. Medicare pays about 80% of coverage and your FEHB will make-up for any outstanding portions for services covered. When you reach Medicare eligibility, Medicare becomes the primary in most cases, while your FEHB acts as a supplement. Note there are some services that Medicare covers and FEHB does not, the reverse is also true.
Age 70
• You may begin maximum Social Security benefits, if the starting date was delayed to this age. There is no advantage to delaying benefits past this age.
Age 70.5
• Required minimum distributions from qualified plans like your TSP, IRAs, and deferred compensation plans begin the year after you turn 70.5.
There have been many changes in health care laws; therefore it is always recommended that you review your policies and plans often. You should also find a good, highly trained, financial professional to help you with your retirement plan and benefit and insurance selections.
FEHB and Postal LiteBlue Access
P. S. Always Remember to Share What You Know.
Good Health Is Wealth
Good Health is Wealth
In a previous post we were challenged to a Retirement Readiness Quiz. One of the questions asked, “Are you taking care of your health”. That question is one of the most important aspects of your plan to Retire Well. Obviously you should be taking advantage of your FEHB and Flexible Spending Account options, but no matter how much money you have saved and how well you are prepared, whether your eligible for Social Security, whether your eligible for the TSP or a Corporate sponsored 401(k), whether you use LiteBlue or TSP.gov, plan the enjoyment of your hard work goes out of the window if your health is not good.
Let’s talk about a very eye opening project that has been getting quite a bit of press over the last few years. Dan Buettner, co-director of the AARP/Blue Zones Vitality Project launched the Blue Zone Quests in 2005 to study and research these rare regions and to share what they can tell the rest of us about taking care of our health so that we live longer and better lives.
The term ‘Blue Zone’ is really an accident of history. Demographer, Michael Poulain, during a meeting in 2001 highlighted the region of Sardinia with a blue marker on the map. The region of Sardinia was home to an exceptionally large concentration of centenarians and thus the first Blue Zone was born.
Buettner and his team have identified other Blue Zone areas: Okinawa, Japan, Nicoya Peninsula in Costa Rica, the remote Greek Island of Ikaria, the Barbagia region of Sardinia, Italy and Loma Linda, California. You will note that only one Blue Zone has been identified in the United States. People in these regions live to reach 100 years of age at a rate significantly higher than the rest of the population. They live longer and healthier lives and suffer about one-fifth the rate of heart disease and cancer found in the general population in the United States.
We are learning more and more that genetics play a monumental role in the longevity of our lives, but life style may play an even greater role. Diet, exercise, spiritual values, and mentally stimulating activities are important factors in creating good healthy living habits. The Blue Zone centenarians seem to always be busy doing something physical. It is reported that their muscle tone is much different than the average one of us. They keep busy. We can learn pretty valuable information from the Vitality Project. They are obviously doing something the rest of us must learn to do.
It also appears they have found a way to manage stress, live long and healthy. To live long and healthy is surely a goal we would all like to reach. Good health is wealth. In order to achieve that wealth that has a greater rate of return than any financial instrument imaginable, we must have a plan for staying healthy and active. If you don’t start the engine to a car for long periods of time, when you do attempt to start the engine, it just might stall or not start at all. Reeve up your engines and let’s get started preserving our wealth. CHEERS!!! To Your Good Health.
P. S. Always Remember to Share What You Know.
Federal / Postal Retirement Planning Report Card
Retirement Planning Report Card
From your Thrift Savings Plan to FEHB to FEGLI, each of us will be ‘graded’ on our Planning Report Card. Much like when we were kids in school how well prepare ourselves on these topics, will have an impact on how well we do. If you got good grades in school, your parents often rewarded you with something special, sometimes even money to show the value and significance of getting good grades. Your Retirement Planning Report Card, however, is far more important than if you got an ‘A’ in your Social Studies class. This Report Card will truly impact the rest of your life.
You have reached another milestone in our lives where once again a report card is important. The difference is if you get a good report card by planning ahead for retirement (such as using your Thrift Savings Plan fully), your reward is to live in comfort and security. Proper planning allows you to retire on your own terms and take the worry out of how you are going to survive now that your income is much lower than it was as an active employee.
Your planning report card should include estimates of your pension income which will resemble reality the closer you get to retirement. Your Retirement Planning Report Card should also include information on your TSP.gov account any Social Security Benefits you might be eligible for and even your life expectancy. If you are postal employee you will need to access your LiteBlue account and gather any forms that you would like to maintain in retirement. Look to include your total estimated monthly retirement income and your estimated monthly expenses. Do not forget to include any additional savings and IRA’s that you have along with your spouse’s savings too. Other items you think are relevant will help you paint the best picture possible of your retirement future. It is always a good idea to consider talking with a financial professional who focuses on Federal and Postal retirees (Liteblue information can be found HERE). They are tough to come by and the average ‘Advisor’ probably doesn’t know much about your benefit package, but if you can find a FERS, CSRS and FEGLI expert – you should do yourself the favor and sitting down with them to discuss your needs.
There is quite a bit of work to do to get ready for retirement, but the sooner you get started the closer you are to reaching your retirement goals.
P. S. Always Remember to Share What You Know.
The Chief Executive Officer (You, the CEO)
You, the CEO
Organizations have many layers of responsibility. However, the organization’s failures or successes rest in the hands of the Chief Executive Officer, the CEO. The BUCK stops with YOU, because you are the CEO of the Business of Your Life.
You have to take charge by prioritizing the steps necessary to ensure the success of the Business of Your Life as you move into retirement. CEOs inquire about what they need to know in order to ensure long-term viability of the organization’s resources. As the CEO (YOU) of the Business of Your Life, it is time for you to establish an open and frequent line of communication with your Human Resources Office.
Make sure that your service computation date is correct as well as your FEHB and FEGLI elections verifying at least 5 years of participation. Meeting the five year requirement enables you to take your FEHB and FEGLI into retirement.
Consider letting the last two years prior to your planned retirement year, be a period of investigation and examination of your work history profile to avoid surprises as you draw closer to your targeted retirement year. Give yourself time to process the information you have gathered to determine the level of utilization and implementation.
Once you have made your inquiries, gathered and assembled critical information, processed the information to determine the right fit for your retirement vision, you can then begin applying what you have learned from your research and investigation.
Determining the right fit for your retirement vision is highly customized. Your retirement future is not a cookie-cutter phenomenon, but a challenge and an opportunity unique to your circumstances, needs, values and choices – The Business of Your Life. Applying what you have learned means making it happen, making it real and making it work. It’s up to you to make it happen – the BUCK stops with YOU- the CEO.
P. S. Always Remember to Share What You Know.
An Economically Changing World
The world is changing. As Federal and Postal employees we face more economic challenges today than the majority of the current workforce has ever witnessed. The hardships of the Great Depression, we either read about in textbooks or heard stories from parents and grandparents, but hardly a reality for baby boomers and beyond.
Over the past several years, the reality of our finances and the turbulence of a global economy is a constant conversation at the average Federal and Postal employee’s families dinner tables. Yet, our responsibility, regardless if we are CSRS or FERS, to do what is necessary to face a retirement future with readiness, still remains. I remember parents saying, “Save for a rainy day.” The economic uncertainty of our times requires that we save for a tsunami. The cost of maintaining our standard of living is much higher today than it was for our parents.
In addition, economically, conditions have created differing and varying levels of responsibility for Federal and Postal retirees. Retirement incomes are increasingly being shared to support other family members, including adult children who are either unemployed or under-employed. Providing support to family members is what we do as Americans until they can get on their feet.
Because our plates are fuller than ever before in recent times, planning for a long life after retirement must be approached with care and a deliberate commitment to live well below our means. We can no longer economically live at our means and certainly not above our means, but below them in order to have a cushion of economic longevity. Remember, economically, the goal is to have your resources outlast you.
The technical aspects of the federal and postal employees’ retirement system from FEHB, Medicare, to FEGLI and your TSP are difficult to understand and much more difficult to master. There are such a vast number of technical pieces of the federal retirement system it seems to justify the use and consultation of both your HR office or a qualified retirement benefit expert.
Use PSRetirement.com’s easy access for more information on your TSP Account and Login information.
P. S. Always Remember to Share What You Know.
Suspending My FEHB
What Happens If I drop of suspend my FEHB – Can I Ever Get it Back?
That’s a good question and one that is extremely valuable in planning for a comfortable and secure retirement. When you get the information needed to make informed decisions you can ensure that you will retire well.
If you drop or suspend your FEHB under certain circumstances you can re-enroll? It is always a good idea to talk to your human resources office before you consider taking action to drop or suspend your FEHB.
It should be noted that you cannot enroll in FEHB after you retire if you were not enrolled in the plan at retirement and met the FEHB qualifying criteria. A situation when suspending or dropping your FEHB may be appropriate, is when an employee marries or is married to another federal employee with FEHB coverage. Both spouses having FEHB does not constitute double coverage, as you cannot be covered under two FEHB plans simultaneously. However, each person can decide to carry self only or a family plan can be considered. Whatever the choice, it is always a good idea to weigh the financial burden of the choice made and talking with your chosen financial planner may help with your analysis.
Regardless of your CSRS or FERS eligibility, if you are considering dropping or suspending your FEHB coverage you need to give a very good amount of time and energy to understanding what the impacts may be to you and your family. Although the cost of the FEHB premium changes annually, unlike FEGLI which gets terribly expensive as a person ages, FEHB remains cost competitive in the market with the average employee paying only about 25% of the cost. Having information and discussing options with a professional who is an expert in your benefits and your human resources office will help you make the best decision to retire well.
P. S. Always Remember to Share What You Know.
FEHB and Medicare
What do FEHB and Medicare have to do with the other?
Americans are living longer and that means going forward we will have an unprecedented number of seniors making up the American population. Unfortunately, as the population ages, we will have a greater need for medical treatment and services – more visits to the doctor and more hospitalizations associated with aging.
The significant aging population also speaks to a decrease in income and earning capacity among that group due to retirement. As income declines, a balance will only be achieved by realizing a decline in expenses.
One of the greatest increases we face as an aging population is medical costs. One way of keeping your money in your pocket is by making sure your health care needs are covered. It is undeniable that health care will become one of the largest outlays of financial resources as we age.
FEHB will not pay for all our health care needs and neither will Medicare, but having them both should place us in a safe spot. For instance, one of the luxuries of retiring is traveling to other countries for many retirees. If you become ill and need emergency treatment while on travel, your FEHB will cover you, but not Medicare. It is very important to find out exactly what services are covered under your plan, be it FEHB, Medicare or a Medicare Advantage Plan.
Being a federal employee puts you in a very good position as you evaluate your future health care needs. Having the benefit of your FEHB and Medicare just might be one of the safest ways to protect your physical and financial health so that you can retire well.
P. S. Always Remember to Share What You Know.
FEHB – The Decision is Yours
What You Decide to do With Your FEHB at Retirement is Your Decision…..
The best gift one human being can give to another is the gift of knowledge and information. As you get closer and closer to retirement, you may come across a myriad of discussions about whether you should keep your FEHB when you become eligible for Medicare or whether you should suspend your FEHB or wave goodbye to it. Give your friends, your colleagues, and even give yourself, the knowledge you need to make the best FEHB and Medicare decisions.
I am sure every report you read will have some pretty good sounding reasons as to what you should do with FEHB at retirement. Their arguments might be so convincing that you find it hard to resist their opinion about the very important business of your life and your Medicare or FEHB coverage.
Don’t shy away from reading and listening because you can always pick up some good tips, but remember to educate yourself on the facts – a very key ingredient to ensuring that you retire well. Get a good handle on what your health care goals are for retirement and beyond and whether FEHB fits within those plans. Speak to a professional who is an expert in your benefits and determine how you want to reach those goals and what is the best fit for what you and your family need. As you analyze the business of your life – it becomes urgently important to distinguish between what is required for you to survive and what is simply a matter of what is pleasing.
There is a vast difference between need and want the decision will boil down to what you can afford. That difference will become more and more vivid as you paint a picture, as only you can, of what you want that picture to represent for you and retiring well and your health should be something that you don’t skimp on. Gather, analyze, evaluate all the information on FEHB that you can, along with all of the resources available to you so that you can make an informed decision that has the flexibility to land you in the place that fits your retirement needs to retire well..
P. S. Always Remember to Share What You Know.
