FEHB Medicare Question

[jack3454]

At 64, if retired from Federal career, has FEHB but NOT an active employee anymore…are they required to Enroll in A and B At 65?

If no (and they can continue with FEHB without A and B), will they incur a late enrollment penalty If they enroll in Medicare at some point if they dont enroll in Medicare at 65?

I thank you in advance for answering this as I think Im losing my mind.

 

[Fisher]

They are not required to but would be subject to the Part B LEP after 12 months. There is no good reason to not sign up for Part A.

 

[jack3454]

Is there any reason why they shouldnt enroll in Part B as well then, knowing the LEP possibility?

 

[Fisher]

Is there any reason why they shouldnt enroll in Part B as well then, knowing the LEP possibility?

As far as I'm concerned, no. Not to mention, FEHB is pricey. I did have one guy tell me years back that he would just stay on his FEHB plan forever so he wouldn't have to pay the Part B premium. That made zero sense but I just told him to have a great day.

 

[jack3454]

Ok, I appreciate the answer. Apparently HR is telling groups of people they dont need Part B ever, but in addition they wouldnt have a late enrollment even if they were retired for years as long as they had FEHB.

 

[Fisher]

Straight from OPM:

What Happens If I Don't Take Part B as Soon as I'm Eligible?If you do not enroll in Medicare Part B during your initial enrollment period, you must wait for the general enrollment period (January 1- March 31 of each year) to enroll, and Part B coverage will begin the following July 1 of that year. If you wait 12 months or more, after first becoming eligible, your Part B premium will go up 10 percent for each 12 months that you could have had Part B but didn't take it. You will pay the extra 10 percent for as long as you have Part B.

Medicare Part B Coverage

information on Medicare Part B including advantages, cost and effects of late enrollment

www.opm.gov

 

[jack3454]

That makes me feel a lot better, thanks! He was adamant I was wrong and I was second guessing myself.

Quick question…in your experience with people on FEHB, what is your typical course of action with them or what typically do these people decide to do as far as their medicare coverage?

 

[DonP]

All this depends . If there taking a lot of exp drugs you can’t beat the fehb plan . Even if there maxing the out of pocket at $6 k . Remember all drug cost go toward the moop in fehb plan.When you add the Part B premium of $174.70 , good drug plan of $60 , med sup premium of $180 or so I couldn’t make a case to go sup route . Fehb drug costs were much lower than pdp plan .But in 2024 United came in with a good mapd also . And fehb will pay $100 a month toward Pat b premium .

 

[jack3454]

All this depends . If there taking a lot of exp drugs you can’t beat the fehb plan . Even if there maxing the out of pocket at $6 k . Remember all drug cost go toward the moop in fehb plan.When you add the Part B premium of $174.70 , good drug plan of $60 , med sup premium of $180 or so I couldn’t make a case to go sup route . Fehb drug costs were much lower than pdp plan .But in 2024 United came in with a good mapd also . And fehb will pay $100 a month toward Pat b premium .

Oh wow, I didnt know FEHB will credit 100 to Part B.

This person was on one drug and it was a generic so Im assuming supplement would have been cheaper for this person.

 

[wehotex]

I’ve encountered older FEHP members who WISH that they had enrolled for Part B when they T65, but were told that they didn’t have to. Now, they face higher insurance premiums due to lack of Part B. A call to OPM will help them understand their rules. They will also explain the Part B stipend.