Would you benefit from adding Medicare to your Federal Employee Health Benefits Insurance?
Nearly 9 million people worldwide are covered by the Federal Employee Health Benefits or FEHB program. Retirees with FEHB often must also decide whether or not to add Medicare as part of their coverage. It can be a difficult decision, but we’ll break it down for you by the four parts of Medicare.
How Original Medicare Effects FEHB
There are two parts to Original Medicare: Medicare Part A and Medicare Part B.
Medicare Part A covers hospice services, inpatient hospitals stays and post-hospital home healthcare. Part A can be earned premium-free simply by working at least 10 years in the United States. Since it’s typically free, enrolling in Part A is generally a smart decision.
Medicare Part B covers physical therapy, surgery, chemotherapy, doctors visits and lab testing. Durable medical equipment such as wheelchairs, walkers, and oxygen pumps are also covered. Part B has a monthly premium, making it less popular than Part A. However, it is important to consider Part B coverage when you are first eligible because a penalty will incur if it is added later on.
How Medicare Advantage Plans Effect FEHB
Medicare Advantage plans, otherwise known as Medicare Part C, is another type of private insurance plan. Enrollees can sign up for this in addition to Part A and Part B. Medicare Advantage plans usually offer many of the same benefits as FEHB plans do. They both charge deductibles and co-pays. Having both a FEHB and a Med Advantage plan is not necessary.
You can chose the Med Advantage plan to be your primary, but you will have to suspend the FEHB plan. Med Advantage plans have low monthly premiums, so for some people this is the best decision. Keep in mind that this must be used in addition to a Part B plan, so while the Med Advantage monthly premium might be low, there are still some costs associated with it.
How Medicare Part D Effects FEHB
Medicare Part D covers retail prescription drugs. Typically, this is not needed in addition to a FEHB plan because they have built-in coverage for prescription drugs. If you are curious as to what, if any, cost savings this could offer you, consult a Medicare specialist to compare plans.
How Medigap Effects FEHB
Out-of-pocket expenses can really add up. Medigap can be added onto Part A and Part B coverage to help cover some of these costs. It works similar to how a FEHB plan would supplement an Original Medicare plan. Having all three policies is not necessary.
Like with Medicare Part D, there is a possibility of cost savings by choosing Medicare over your FEHB plan. However, Medigap doesn’t offer drug coverage, so a Part D plan would also be needed.
How Medicare and FEHB Effects YOU
Finding reliable insurance coverage can feel like a puzzle. You need a few different pieces to complete the coverage that works best for you. Luckily, there are plenty of options available.
Speaking with one of Gordon Marketing’s licensed professionals is absolutely free. One of our agents can help you compare prices and coverage details at a time that works best for you.
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Sylvia Gordon and her sister, Rebecca, run Gordon Marketing, one of the nation’s largest Medicare FMO/NMA offices. They have a team of over 100 that train and support independent insurance agents in all 50 states. You can find Sylvia’s weekly posts on LinkedIn and the sisters' Youtube channel posts 2 training videos each week. Contact Sylvia at sgordon@gordonmarketing.com or 800-388-8342.
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