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the only other thing i'm going to throw out there is this: during open season this past year OPM sent out a survey to annuitants regarding, i think, satisfaction with FEHB/healthcare plans.
i say "i think" because if you were under 65 the survey wouldn't let you go on to answer any further questions, you were screened out due to age/not being medicare eligible. i have a friend who was not excluded, he seemed to think it was a pretty innocuous satisfaction survey. i'm not convinced.
my off the wall idea is they are tinkering with the idea of forcing everyone to take part b. USPS i think might be further along in this regard. this article is over a year old but gives you an idea of where things may go. i just did a quick search and didn't come up with anything newer although i'm sure there is something out there.
BCBS and other FEHB insurance carriers will waive their deductible, co-pays, etc. if you sign up for Medicare Part B. Also many retirees downgrade from standard BCBS to basic BCBS once they sign up for Part B. These actions make it a little more affordable (e.g., cover about half the cost of Part B). In general all FEHB insurance carries equivalent prescription drug benefits to Medicare Part D so there is no reason to sign up for Part D. I don't know if it makes any difference that only one spouse is on Medicare - I assume that deductibles and co-pays would be waived for both. That is my limited knowledge about the topic but you need to do the reading to verify for yourself. FedSmith, Government Executive, etc. have archived discussions on this topic. Their general recommendation is that if you can afford it, it is a good idea to have the Part B.
I'm a federal retiree, and this is the month I turn 65. I already signed up for Medicare Part A, a no-brainer since I have paid for it over the course of my career. And as you say, there's really no reason to sign up for Part D - the BC/BS plan I've had for the last 43 years has decent prescription drug benefits.
So here I am, faced finally with making the decision I've been putting off. Do I stay with the BC/BS plan I've had forever and that I've been happy with, or, do I go with Medicare Part B at $121.80 for me since I'm not and never will receive Social Security, and switch from BC/BS Standard to BC/BS Basic at $154.32? The combination of Part B and BC/BS Basic will be $276.14/month, BUT darn near everything will be covered, and many/all deductibles and co-pays will be covered/waived.
I am leaning towards signing up for Medicare Part B, and I don't think I would be feeling much reluctance to do so if it weren't for the whole "hold harmless" thing that has retirees like myself paying more for Part B than the much larger group of retirees who pay less when there is no (or very low) cost of living increase for both groups.
Like any decision regarding insurance of any kind, a person has to weigh the costs, benefits, and odds. Although I've enjoyed relatively good health my entire life, the odds - and the medical history of my parents - would suggest that my medical costs will be increasing. In the first three month of this year, my medical costs exceeded those of the previous year.
Yeah. The more I think about it, the more I think I'll sign up for Part B, and switch from BC/BS Standard to Basic. And like my auto insurance and homeowner's insurance and boat insurance, if I never use Part B, well, that will be just fine with me.
It all depends on what kind of shape you're in now and expect to be in the next 10 years or so! I'll turn 65 in October and at this point, I'm going to keep my Blue Cross Blue Shield Basic and skip getting Medicare Part B. I go to the doctor once a year for a physical and to re-up my prescriptions. It doesn't make economic sense at this point, to shell out $121.80 a month to avoid having to come up with one $30 co-pay.
If you are the type of person who's going to the doctor or a bunch of specialists every other week, then it does make sense to pay for both BCBS Basic and Medicare Part B.
One thing to keep in mind though, is if you don't sign up for Medicare Part B, BCBS will now only pay the Doctor only as much as Medicare Part B pays. Find out if your Doctor accepts Medicare Part B as payment in full for a visit, otherwise you may be owing him money! That's why many non-Fed people have those Medicare Advantage and Supplement policies.
I just want to avoid paying for 2 insurances. It might be different too, depending on how much you get every month. If you're retired getting $5000 a month, paying for Medicare Part B isn't a big deal! I get $1726 a month and have better things to spend 7% of my income on, than a second insurance policy!
I just want to avoid paying for 2 insurances. It might be different too, depending on how much you get every month. If you're retired getting $5000 a month, paying for Medicare Part B isn't a big deal! I get $1726 a month and have better things to spend 7% of my income on, than a second insurance policy!
You may want to consider this:
Quote:
Originally Posted by ABQ2015
BCBS and other FEHB insurance carriers will waive their deductible, co-pays, etc. if you sign up for Medicare Part B. Also many retirees downgrade from standard BCBS to basic BCBS once they sign up for Part B. These actions make it a little more affordable (e.g., cover about half the cost of Part B).
BCBS and other FEHB insurance carriers will waive their deductible, co-pays, etc. if you sign up for Medicare Part B. Also many retirees downgrade from standard BCBS to basic BCBS once they sign up for Part B. These actions make it a little more affordable (e.g., cover about half the cost of Part B). In general all FEHB insurance carries equivalent prescription drug benefits to Medicare Part D so there is no reason to sign up for Part D. I don't know if it makes any difference that only one spouse is on Medicare - I assume that deductibles and co-pays would be waived for both. That is my limited knowledge about the topic but you need to do the reading to verify for yourself. FedSmith, Government Executive, etc. have archived discussions on this topic. Their general recommendation is that if you can afford it, it is a good idea to have the Part B.
Not to complicate matters but another approach is to sign up for Medicare Part B and an Advantage Plan and suspend your FEHB (assuming you are already retired). There are only a few conditions where you can suspend FEHB - one is if you are eligible for Tricare and another is if you purchase Medicare Part B and a pre-approved Advantage Plan (some of the FEHB insurance carriers provide these approved plans). Then if you started to have more health issues later in life, you could reinstate the FEHB. This approach might save you a little money. Of course it would be nicer if you could suspend Medicare Part B without a penalty!
I may have mis-spoke on the bold part above. While Tammy Flannagan seems to recommend having both FEHB and Medicare Part B, she does not provide much in the way of specifics as to why. When I went back to a couple of the other websites and Bogleheads, there is not heavy endorsement of having both unless you have lots of health problems, easily have the money, or for peace of mind.
Last edited by ABQ2015; 04-05-2017 at 02:00 PM..
Reason: Possible incorrect statement removed.
If you are the type of person who's going to the doctor or a bunch of specialists every other week, then it does make sense to pay for both BCBS Basic and Medicare Part B.
No, I've enjoyed good health ... but things are changing. I try to watch what I eat - I'm a good weight for my height and age, and I generally eat veggies and fish. Haven't had red meat in many years. And I try to exercise on a relatively regular basis, although I could be better at that.
BUT, both my parents died in their 60's - 66 and 69. I like to think I got all of their good genes and none of their bad - we'll see, I guess.
Quote:
Originally Posted by TheEmissary
One thing to keep in mind though, is if you don't sign up for Medicare Part B, BCBS will now only pay the Doctor only as much as Medicare Part B pays. Find out if your Doctor accepts Medicare Part B as payment in full for a visit, otherwise you may be owing him money! That's why many non-Fed people have those Medicare Advantage and Supplement policies.
Excellent point. I had read that some time ago and had forgotten it - thanks for the very timely reminder!
Quote:
Originally Posted by TheEmissary
I just want to avoid paying for 2 insurances. It might be different too, depending on how much you get every month. If you're retired getting $5000 a month, paying for Medicare Part B isn't a big deal! I get $1726 a month and have better things to spend 7% of my income on, than a second insurance policy!
Yeah, I think I've been dragging my feet on this for that very reason .. a big reluctance to pay for two health insurance plans. But if I switch from BC/BS Standard to Basic and pick up Medicare Part B, my total health insurance premiums will increase less than $50 a month. I can afford to do that, and I really don't know if I can afford NOT to do that.
I found a four part series on the Federal Retirement Planning website on FEHB vs Medicare Part B written by a retiree who was in the process of making this decision. The link is to Part 4 which includes links to the other 3 articles. There is focus on BCBS. The 2013-2014 articles are basic but good at explaining options - hopefully the info is not outdated.
Not to complicate matters but another approach is to sign up for Medicare Part B and an Advantage Plan and suspend your FEHB (assuming you are already retired). There are only a few conditions where you can suspend FEHB - one is if you are eligible for Tricare and another is if you purchase Medicare Part B and a pre-approved Advantage Plan (some of the FEHB insurance carriers provide these approved plans). Then if you started to have more health issues later in life, you could reinstate the FEHB. This approach might save you a little money. Of course it would be nicer if you could suspend Medicare Part B without a penalty!
I may have mis-spoke on the bold part above. While Tammy Flannagan seems to recommend having both FEHB and Medicare Part B, she does not provide much in the way of specifics as to why. When I went back to a couple of the other websites and Bogleheads, there is not heavy endorsement of having both unless you have lots of health problems, easily have the money, or for peace of mind.
Check with the policies for the FEPBlue about reinstating your coverage with them in the event you decide you aren't happy with the Medicare Advantage plan or the alternates you switched to. I recall reading in their written policies some years ago that once you dropped the FEPBlue for a Medicare Advantage plan or another Part B supplement policy, you could never re-enroll.
I'm retired CSRS, and signed up for Medicare Part B last year. I also have Federal BC/BS Basic.
I love not having any co-pays, and the savings has more than paid for Part B.
Lets face it, the FEHBP is getting worse; premiums, copays, and deductibles are increasing every year. Copay's for CT Scans, and MRI's are over $100. Go to a Dermatologist and have something removed, and the office visit is $40, and the copay for the biopsy/removal is $110. ER visit copays are $75, and then there are copays for the doctors, etc.
One never knows how their health will be, or how bad the FEHB will be gutted in the future, so I say Medicare Part B is a bargain, and you can't go wrong signing up for it.
I'm retired CSRS, and signed up for Medicare Part B last year. I also have Federal BC/BS Basic.
I love not having any co-pays, and the savings has more than paid for Part B.
Lets face it, the FEHBP is getting worse; premiums, copays, and deductibles are increasing every year. Copay's for CT Scans, and MRI's are over $100. Go to a Dermatologist and have something removed, and the office visit is $40, and the copay for the biopsy/removal is $110. ER visit copays are $75, and then there are copays for the doctors, etc.
One never knows how their health will be, or how bad the FEHB will be gutted in the future, so I say Medicare Part B is a bargain, and you can't go wrong signing up for it.
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Well, I'm all set - Medicare Part A started this month; Medicare Part B starts the first of May; I've switched my federal BC-BS from standard (high) to basic (low). And I feel really good about this. If it turns out that I live into my 90's and that I had "too much" health insurance between now and then, so be it. I certainly have more peace of mind having the coverage that I have now, and that means a lot to me.
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