I retired in February 2023 and we have federal health insurance that we are keeping. I believe it will now act as secondary to our Medicare. My husband has Medicare Part A, and when I turned 65, I enrolled in Parts A and B. Should we sign my husband up for Part B as well?
I assume by federal health insurance, you mean FEHB?
FEHB is a bit unique because even after retirement, it will pay primary if you don’t have Part B. However, if your husband decides to enroll in Part B later, he may face a late enrollment penalty. So, it’s a personal decision. You won’t encounter the Medicare primary issue that other retirees might face.
@Pax
Well, that’s interesting. Yes, I do have FEHB. Based on your answer, I’m wondering if I really need Part B since it’s quite expensive.
Vesper said:
@Pax
Well, that’s interesting. Yes, I do have FEHB. Based on your answer, I’m wondering if I really need Part B since it’s quite expensive.
I’m a federal annuitant (retired postal worker) under FEHB. Part B isn’t required, and it didn’t make a difference for my HMO plan, so we never signed up for it at age 65. But recently, as a postal annuitant, I had the choice to enroll in Part B without a late penalty.
Do I need it for my current HMO plan? No, but it gives me more flexibility if I want to switch to a Medicare Advantage plan or leave my HMO. Plus, I sleep better knowing we’re covered in case my current plan stops participating in FEHB. A late enrollment penalty would be tough to deal with.
For FEHB, it’s really a personal and financial choice.
@BrokerBrandon
To clarify, you were ‘grandfathered’ under the new PSHB healthcare retirement system and not required to take Part B, but chose to for more flexibility. Future USPS annuitants have to take Part B, but this doesn’t apply to other FEHB annuitants.
Most FEHB retirees take Part A because it’s free and stick with their FEHB plan for Part B and prescription coverage. Many don’t sign up for Part B because they find it unnecessary. Those who want to use Part B instead of FEHB should consider suspending their FEHB rather than terminating it.
@Gerald
Exactly, I was given a one-time choice to enroll in Part B without a penalty. Future USPS retirees have to enroll in Part B, but this is not the case for all other FEHB participants.
I think Part B can be seen as ‘extra’ coverage with FEHB, and many might find it an unnecessary expense. But for me, having the option without a penalty was a good opportunity. It’s a personal choice, but I would never fully drop FEHB—just suspend it if I ever switch to a Medicare Advantage plan.
Vesper said:
@Pax
Well, that’s interesting. Yes, I do have FEHB. Based on your answer, I’m wondering if I really need Part B since it’s quite expensive.
Some FEHB insurers offer Medicare Advantage or hybrid plans with Part B premium payback, which can reduce costs. Take a close look at your options during open season. You can choose to drop Part B, and your FEHB plan would work the same as it did before Medicare. But be aware, there would be a Part B penalty if you decide to enroll in the future.
If your husband is 65 or older and not covered under an employer-qualified health plan, then he would need Part B. Check more details here: Medicare Plan Enrollment
@Sky
He is covered under my federal healthcare since I retired. We kept the plan.
Vesper said:
@Sky
He is covered under my federal healthcare since I retired. We kept the plan.
In that case, neither of you would need Part B if your federal healthcare plan is considered a qualified plan by SSA.