Medicare Help

[BearBio]

I am closing in on 65. Soon, I will be signing up for Medicare. I have no idea what to do.

Background:

I work for the Feds.
I currently have Blue Cross for me and my wife (no kids).
I understand I can carry my Blue Cross into retirement.
I will continue to work until age 70, in order to get 20 years in
for my pension and to maximize Social Security.


I do have several daily meds I will need to get coverage for.
I am diabetic and hypertensive.
Cholesterol and Hypertension well controlled with meds.

I'd like some advice from those who have been there and done that. Please no tirades and rants. Surely there are some retired Feds here who can help.

Thanks much!

 

[H Richard]

As long as you are still working for the feds and have eligibility for their coverage you must carry that coverage as any employer with more than 50 employees will be primary. You do need to go to Social Security and sign up for Medicare, but not any Social Security benefits. Your personnel dept. should routinely be providing you with all the information you will need.

 

[Hack]

First off, and most importantly, Medicare Part A/B does not cover 100% of all expenses. It does cover 100% of some expenses. The remainder is your responsibility.

Once you turn 65, Medicare becomes your primary health insurance. You should continue to carry your FEHB while you are working as it will act as your Medicare Part C plan. FEHB also will satisfy your Medicare Part D benefit.

Upon retirement, assuming you've carried your FEHB for the last five years of your career, you may continue to use them as your Medicare Part C and Part D coverage. Or you can cost compare them to other policies available in the private sector.

If you are married, and your spouse is not eligible for Medicare (or have her own health coverage), you definitely will need to continue your FEHB into retirement, or until she becomes eligible for Medicare. Then you can make the decision whether to stay with the FEHB, or go into the private sector for Medicare Part C/D coverage.

I will turn 65 next year, I am a CSR retiree and will carry my FEHB plan (BC/BS HMO) as my Medicare Part C/D plan.

 

[Gunhacker]

I just went through the process of trying to make sense of Medicare ( a daunting task) for my wife, she was being covered under my medical plan at work, but now she is under her own coverage plan.

First... you have what I call "basic medicare", which you obtain by enrolling via Social Security. It has coverage gaps... that is where the "Medicare Supplement Coverage" plans come in that you see being hawked in TV ads by Humana and AARP.

Now this is something that I'm not completely clear on, but there are plans that combine basic Medicare benefits and supplemental coverage and classified as a "Medicare Advantage" plan that can be obtained from a health services provider that is authorized to provide basic Medicare coverage by the SSA..?

At any rate, one of the things I discovered last year during my employers open enrollment period for our health plan is for my wife's coverage, I was paying way more to carry her under my health benefits at work than just getting her coverage on a separate plan... I mean we're talking what was a $2,000 difference in the annual cost, just for her.

My medical plan coverage at work is with Kaiser, when I talked to last year about my wife being eligible of Medicare, they quoted me coverage for under their "Senior Advantage" plan that provides the basic and additional Medicare care under the one plan, that is only $84.00 a Month... $1008 annually, versus the almost $3,000 my plan at work was quoting, bringing what would have been a whopping $6,000+ annual cost for medical for the two of us.

I suspect that my HR department was not co-ordinating Medicare benefits with our Health Plans very well (if at all).

In that situation, it's my understand that the coverage is supposed to be coordinated so between what Medicare covers, and what the private medical insurance picks up where Medicare leaves off, the full amount of the medical expense should be handled (minus any deductible on the private insurance side).

I think that is what was going on in my case at work last year when my wife started to be covered my Medicare was I was probably needlessly paying for full coverage for my wife under my employee health plan while she was also enrolled and covered by basic Medicare.

All of that was to say check and work closely with your HR/Personnel department. There is a pot load of info on the internet... the AARP website (yeah, I know they have an anti 2A stance, but the info is free so you don't need to be a member), and "Medi gap" coverage providers (Humana, etc.) also have some good explanations.

 

[BearBio]

First off, and most importantly, Medicare Part A/B does not cover 100% of all expenses. It does cover 100% of some expenses. The remainder is your responsibility.

Once you turn 65, Medicare becomes your primary health insurance. You should continue to carry your FEHB while you are working as it will act as your Medicare Part C plan. FEHB also will satisfy your Medicare Part D benefit.

Upon retirement, assuming you've carried your FEHB for the last five years of your career, you may continue to use them as your Medicare Part C and Part D coverage. Or you can cost compare them to other policies available in the private sector.

If you are married, and your spouse is not eligible for Medicare (or have her own health coverage), you definitely will need to continue your FEHB into retirement, or until she becomes eligible for Medicare. Then you can make the decision whether to stay with the FEHB, or go into the private sector for Medicare Part C/D coverage.

I will turn 65 next year, I am a CSR retiree and will carry my FEHB plan (BC/BS HMO) as my Medicare Part C/D plan.

You're CSR. I'm FERS. Do you know if there is a difference?

 

[LostintheOzone]

At age 65 you can get social security and still work, which sounds like your plan. My wife is still working and collecting SSI at the same time. It doesn't matter how much she makes she still can draw the full amount.

As far as medicare, I have it and a G gap to cover the remainder of my bills. Works great and about $150 annual deductible. All of those gap plans are the same, just different companies. Advantage plans may be best for some but the contracts are written for attorneys. Be careful with those. They can have low premiums but high deductibles. No insurance company is in business to lose money. The gov't however makes a habit of spending more than they need to.

I had coverage at work (when I was working) but it was expensive. They deducted money from my paycheck to cover it. With medicare and G gap I'm now paying about the same amount that I was paying when I worked. Medicare with gap is a no questions, no restrictions, no in system/out of system nonsense that some of the advantage plans play. That's why I went that route, plus I'm not an attorney and couldn't make sense of the legal mumbo jumbo.

When you sign up for medicare, if you do, they will ask if you have ins thru work. You may be able to carry both but I'm not sure.

Your wife may be a different situation.

 

[Hack]

You're CSR. I'm FERS. Do you know if there is a difference?

No difference in the FEHB plans. Or how they are treated when you are handed over to the OPM upon retirement. Other than your cost will be deducted monthly, as your pension check is paid monthly.

You still need to be enrolled in your FEHB plan for the five years prior to retiring in order to carry it into retirement.

 

[Hack]

At age 65 you can get social security and still work, which sounds like your plan. My wife is still working and collecting SSI at the same time. It doesn't matter how much she makes she still can draw the full amount.

Your wife must be 66 or older.

An individual can start collect Social Security (old age benefit) as early as age 62. However, your benefit is still subject to your income until age 66. After that, you may work and collect your full benefit.

But, naturally, the government doesn't make it that simple: Retirement Planner: Getting Benefits While Working

 

[BearBio]

Hack: IF I am understanding you right, I enroll in Medicare A at 65. I can work until 70 (to get my 20 in) and then draw my pension and Social Security. By retaining my Blue Cross (FEHB) at retirement, I'll be covered and won't need Plan D coverage.

Am I following you right?

 

[WuzzFuzz]

Part A is a FREEBIE..You still have to pay for the deductable for a hospital stay, but that's when Blue Cross comes into play...If you keep your Blue Cross even after you retire...Compare the costs of Part B, C, D, E, F G or any of the other stuff. I think you'll find Blue Cross will be cheaper, than trying to sign up for all of the B, C, D, E., F etc.

Part A is for hospitalization only....You can't always get to a primary care Dr. under Medicare, but you can with Blue Cross...AND, if you have any plans to travel over seas, Blue Cross is with you.

I'm retired FERS, and I kept my Blue Cross Blue Shield...Paid for all of my cancer treatments, surgery in the hospital, Pet/C scans, and still pays for any and all my ailments. Even my prescriptions were zero, once I had made my yearly deductable for the total deductable Blue Shield costs. Even had to go to emergency in Illinois...NO problem, I just showed my Blue Cross card, and that was that. (All Illinois asked, if the reason I was in the emergency room, was because of a car accident, I suppose so they could go after the ins carrier from a accident, mine wasn't accident related)

As far as Blue Cross Blue Shield goes, select the plan that has the deductable you want. There are several variables there....Just select the one that has a deductable that you're comfortable paying...Co-pay you'll have to pay no matter whether it's Medicare or Blue Cross.

But once you've reached your max co-pay in a given year, then medicine and Dr. visits are zero pay.

Me, I'm single..so self/basic for me.

Go to OPM.gov for some of your answers...Our gov COLA for 2015 sucks..Always has..AND you can't get around that, all Ins costs are going to increase this coming year. They always do...So it's usually a wash...Increase in pay, increase in Ins costs.

I can't say enough good for keeping Blue Cross when I retired.

One more tid bit...Once you're retired, and you elect to Blue Cross Blue Shield...If for some reason you think you want to cancel it, and go with medicare, only to find out, the Blue Cross is/was a better deal, you can never switch back from Medicare to Blue Cross.

Blue Cross won't pay for dental, or glasses. With Medicare, you'll end up having to buy a supplement to pay for what Medicare doesn't cover, and Medicare is getting worse every year in what they'll cover and what they won't.

You shouldn't even have to go to Soc Sec to sign up..One day your part A will show up in the mail...I won't swear to that. But I don't remember having to go to the Soc Sec to sign up for Medicare part A.

WuzzFuzz

 

[BearBio]

Thank you, one and all!!

I've always been a "wild and crazy guy", so all this retirement "stuff" is suddenly quite scary (Never thought I'd live this long).

I'll be better off than some, maybe most. I'll have Social Security, Pension and a modest 401K. Planning on going back and get my PhD.

 

[EQGuy]

I retired under CSRS 5 years ago and I kept Fed Blue Cross/Blue Shield when I hit 65 4 years ago. I signed up for Medicare part A only as I figure that Fed Blues is better health care. I was told that if I later opted to sign up for Medicare that it would be more expensive than if I signed up at 65. I have been happy with my health care coverage and did not notice any change when I became a retiree.

 

[WuzzFuzz]

I retired under CSRS 5 years ago and I kept Fed Blue Cross/Blue Shield when I hit 65 4 years ago. I signed up for Medicare part A only as I figure that Fed Blues is better health care. I was told that if I later opted to sign up for Medicare that it would be more expensive than if I signed up at 65. I have been happy with my health care coverage and did not notice any change when I became a retiree.

That is true, if a person signs up for medicare at age 65 the cost is X...If you sign up at 66 then the cost is XX...If you sign up at 67, then the cost is XXX...Doesn't matter if you retire under CSRS or FERS.


PS...I have C.R.S.


WuzzFuzz

 

[Hack]

Hack: IF I am understanding you right, I enroll in Medicare A at 65. I can work until 70 (to get my 20 in) and then draw my pension and Social Security. By retaining my Blue Cross (FEHB) at retirement, I'll be covered and won't need Plan D coverage.

Am I following you right?

You need to enroll in Medicare at age 65. I believe you can start the enrollment early. Just take the free stuff. You've got coverage for the rest with your existing FEHB plan. You do not need Part D, and the FEHB plans are in compliance with Medicare Part D. I'm turning 65 September 2015, and will sign up for Medicare in July 2015.

Your existing FEHB should cover the health care costs that Medicare A or B doesn't. It will satisfy the Part D requirement. My BC/BS is an HMO, so I only have co-pays to contend with. There are no deductibles in my coverage. From the insurer's point of view, they want you on Medicare A/B, because they (the insurance company) then become your secondary insurance carrier. And only have a portion of the entire bill to pay.

You can delay collecting your Social Security Retirement benefit until age 70 and at that point it will have 'maxxed out', as it gains a bit of value past your Full Retirement Age (66 if you were born between 1943-1954) Retirement Age Calculator

Your FERS pension will be payable when your employing agency gets all the paperwork sent over to OPM. It may take a few months to get your first check. Unused annual leave will be paid to you in a check by your employing agency. Get with your HR department at your employing agency about a year before your planned retirement date and see when they would like to have your paperwork. Some like it early, other's don't want it lying around for any length of time.

Once you've officially retired, you belong to the OPM. Your employing agency is history. You will be assigned a claim number and can get set up on the OPM website: https://www.servicesonline.opm.gov/ You will find it easy to do all things important on that site.

 

[BearBio]

You need to enroll in Medicare at age 65. I believe you can start the enrollment early. Just take the free stuff. You've got coverage for the rest with your existing FEHB plan. You do not need Part D, and the FEHB plans are in compliance with Medicare Part D. I'm turning 65 September 2015, and will sign up for Medicare in July 2015.

Your existing FEHB should cover the health care costs that Medicare A or B doesn't. It will satisfy the Part D requirement. My BC/BS is an HMO, so I only have co-pays to contend with. There are no deductibles in my coverage. From the insurer's point of view, they want you on Medicare A/B, because they (the insurance company) then become your secondary insurance carrier. And only have a portion of the entire bill to pay.

You can delay collecting your Social Security Retirement benefit until age 70 and at that point it will have 'maxxed out', as it gains a bit of value past your Full Retirement Age (66 if you were born between 1943-1954) Retirement Age Calculator

Your FERS pension will be payable when your employing agency gets all the paperwork sent over to OMB. It may take a few months to get your first check. Unused annual leave will be paid to you in a check by your employing agency. Get with your HR department at your employing agency about a year before your planned retirement date and see when they would like to have your paperwork. Some like it early, other's don't want it lying around for any length of time.

Once you've officially retired, you belong to the OPM. Your employing agency is history. You will be assigned a claim number and can get set up on the OPM website: https://www.servicesonline.opm.gov/ You will find it easy to do all things important on that site.

Gotcha. Looks like I'll be about 6 months ahead of you (May, 2015)==FANTASTIC INFO! Thanks, again.

 

[Bullet Bob]

PM sent (message too short, added this )

 

[LostintheOzone]

One other thing. If you are a gov't employee with vacation/sick leave cash out at retirement don't forget to figure that into your income. Where I worked most people retired in Jan. so the cash out check showed up in the first year of your retirement instead of the last year you worked for tax purposes. Some people have a substantial amount of money coming from vac/sick leave when they retire. Depends on your contract.

 

[BearBio]

One other thing. If you are a gov't employee with vacation/sick leave cash out at retirement don't forget to figure that into your income. Where I worked most people retired in Jan. so the cash out check showed up in the first year of your retirement instead of the last year you worked for tax purposes. Some people have a substantial amount of money coming from vac/sick leave when they retire. Depends on your contract.

Very good point! I keep the max leave as carryover (6 weeks) and have 10 weeks or so sick leave.

 

[LostintheOzone]

Very good point! I keep the max leave as carryover (6 weeks) and have 10 weeks or so sick leave.

And keep a copy of every piece of paper you give to your employer, everything. Also everything that comes from your employer. It may not seem like it's important when you get it but you will wish you had it down the road.

SSA said I owed them 2K adjustment about 16 months into retirement. They based that on my vacation/sick leave check that I received when I retired and they counted it as income that year. WRONG! That was money that was accrued for work in previous years and by their own rules was not eligible to be counted as income the year I retired. I had to file an appeal with documentation and it took 5 months for them to figure out that I didn't owe them anything. I came very close to getting my attorney involved.

They're like a bunch of hungry dogs looking for scraps and bones.

 

[HOUSTON RICK]

Cultivate friendships with Social Security and ERISA lawyers.