Q. I’m retiring under CSRS on Dec. 31. I’m covered by Federal Employees Health Benefits. I intend to sign up for Part B and keep FEHB. My wife is under my FEHB and Medicare A/B. When would be the best time for me to sign up for Medicare Part B? Under Part B, how do I know what level of coverage I need under FEHB? Should I keep what I have now? A. There is a seven-month initial enrollment period for Medicare Part B. It begins three months before you turn 65 and ends three months after that month. It’s…
Browsing: HEALTH INSURANCE
Q. 1) What are all the deductions that are taken out of a federal employee’s check when they retire? 2) Do these reductions stay at the same amount prior to retirement? 3) I have 33 years of service at age 51. I know there is a 2 percent penalty for each year under 55, but what about the three years I worked over 30? What happens to those? A. 1) Federal income tax; and, depending on your situation, state tax, FEHB, FEGLI and FEDVIP premiums, savings account deductions and allotments to organizations to which you belong. If you are receiving…
Q. I’m a 79-year-old single federal retiree in CSRS. If I marry a woman 10 years younger, what percentage of my retirement will she receive when I die? I also am a military retiree with Medicare and Tricare for Life, so I wouldn’t need the civilian health insurance. A. As a CSRS retiree, you could elect any amount of annuity for your spouse, from $1 a year to 55 percent of your annuity. To pay for it, there would be two reductions in your annuity. The first would be the standard reduction to provide for the survivor benefit. The second…
Q. Regarding Medicare premiums: Is it taxable income or modified adjusted gross income that is used to determine Medicare premiums for those with higher income? Do you know what the premium amounts will be for 2013? A. The premiums are based on your taxable income, not your gross income. The 2013 premiums haven’t been announced yet.
Q. I am retiring from CSRS on Dec. 1. I have 42 years of federal service. I already have Medicare Part A. I am keeping my health insurance after I retire. Do I have to take out Part B? A. No, you don’t. Part B is optional. It’s up to you to decide if you want to pay for it.
Q. I am confused about your Oct. 22 answer to “Medicare Part B in retirement.” I am 63, retired, receiving my Social Security benefit, have coverage with Blue Cross/Blue Shield for my wife and myself, am not employed, and have no plans to return to work. It is my understanding that BC/BS requires purchase of Part B when I become eligible in a year or so. Yet, the answer to the question seemed unequivocal in stating that B is optional. Can you clarify for me, please? A. Don’t be confused. What I wrote is correct. To back that up, here’s…
Q. I am 68 years old, I am still working and I have FERS. I had to sign up for Medicare Part A when I reached 66 (my full retirement age under Social Security). It was presented as “mandatory” to sign up for Medicare Part A. When I went in to the Social Security office to get information, they told me that if I am still working and have health care coverage by the federal government, I do not have to sign up for Medicare Part B until after I am retired and I am collecting my retirement pension. However,…
Q. I am retired from the USPS (under CSRS) and am turning 65 this year. Can I keep my FEHB insurance? Or must I go on Medicare? Thank you for your time. A. You can — and should — continue your FEHB insurance. You should also sign up for Medicare Part A. It’s free, because you already paid for it through payroll deductions while you were working. Further, your FEHB coverage and Part A work together to reduce your out-of-pocket expenses. Whether you enroll in Part B, for which you’d pay the premiums, is up to you.
Q. I retired from the federal government two years ago. I was under CSRS. I paid into Medicare while working. Is it necessary for me to have it taken out of my annuity now that I am retired? How do I get it taken out since they do not automatically do it? A. You already paid for Medicare Part A coverage through payroll deductions. The Social Security Administration will get in touch with you shortly before your 62nd birthday to enroll you. To enroll in Medicare Part B, for which you’d pay the premiums, you’d need to call the Social…
Q. I’m 74 and have been retired for 5½ years. During that time, my medical coverage has been through my working wife’s FEHB family plan and Medicare Part A. I’ve never enrolled for Medicare Part B. My wife has just retired, retaining the FEHB family plan. She will also enroll (SEP) for Medicare Part B. If I enroll for Medicare Part B, will I be penalized for late enrollment? A. Yes, if you were covered by her plan when you were first eligible to enroll in Part B. If so, you may enroll during the eight-month period that begins the…