A few points…I’ve learned a lot helping my family and dealing with our own.
DH retired with FEPBLue high level (standard), and we now have Medicare with the FEPBlue standard secondary. We tried the middle level one year because OPM told him it would be cheaper. Maybe, but not if you have to go out of network. And the year we changed it cost us more with the middle plan.
The fact that out of network was not covered was very difficult to find in the paperwork at that time. We like our plan because it covers everything that Medicare doesn’t, and if you have expensive surgeries or conditions, it can add up quickly.
Also, you must get a prescription plan with Medicare part D all you have is Medicare. A lot of those prescriptions can cost more than you might think. and if you don’t sign up for it right away when you turn 65, and decide to do it later. You will pay a huge surcharge.
We are very happy with the low cost of our prescriptions through FEP blue. I’m betting all the FEP plans are better than Medicare part D.
It is expensive to have both Medicare and our FEPblue, but we had 3 orthopedic surgeries last year and paid nothing other than our premiums. DH has had several insane health issues, ICUs, and it’s all covered. It has been a godsend for us.
The best thing about federal employee retirement insurance is that you can change it every year, you can try different companies. You can use different levels of plans, you don’t have to stick with the same thing if it’s not working.
You also have that option of going with a Medicare supplement plan, which will likely be cheaper than any federal employee plan, but it will not include prescription benefits, you have to sign up separately for that, AND if you don’t sign up right away at 65, they will surcharge if you want to go to a supplement plan later.
And the Medicare supplement plans are varied, depending on the kind of benefits you want so you have to take a look at the info that explains the differences between the plans.
Medicare advantage—
I researched this for a relative who has less income. Medicare advantage plans are good if you’re healthy because quite often cover your premium for Medicare, and you have low co-pays for visits.
However, if you start to have issues, sometimes you your Medicare advantage plan will let Medicare pay,their 80%, but they don’t pay anything toward the remaining 20%, they make you you pay the other 20%.
There are out-of-pocket maximums for each year, and every single plan is different. Some of them are HMO’s, summer PPO‘s. You have to read every single bit of information.
You don’t deal with anybody, but that insurance company. They also include the prescription benefit and depending where you are basic dental benefits, and basic benefits. I have heard some people call these plans Medicare disadvantage plans. But for people who don’t have enough money to pay premiums, it’s better than nothing.
You have to figure out what will work for you, but we were healthy when my husband first retired, and then lots of bad things happened healthwise. We never would have expected… We can afford the higher premiums, and we are so glad we can because when we see how much it would cost us if we didn’t have the secondary insurance, we definitely would be spending a lot more than those premiums.
I’m not trying to scare you, just understand how Medicare plus any secondary insurance works. Ask questions. The earlier the better.
Finally, the surcharges I mentioned for not signing up to the benefits as soon as you turn 65, those surcharges go on forever, it’s not like a one year thing.
Hope I haven’t confused you too much!
