When they retire (or not) and hit age 65, federal workers have an important and expensive decision to make: if should they buy Medicare Part B coverage.  That’s the one that includes doctors’ expenses.

If they buy it, they pay a lot in monthly premiums. If they don’t buy it and need it, they can be out of pocket thousands of dollars.

Benefits expert John Elliott said the “To B or Not To B” Medicare question is one of the toughest facing older people.  It was one of the topics he touched on during yesterday’s Your Turn radio show.  John gave the equivalent of a how-to-prep for retirement seminar.  You can listen to it anytime by clicking here.

Meanwhile, here’s a summary of what he said about the all-important Medicare Part B issue. Check it out and pass it along to a friend.

“The hospitalization portion of Medicare, Part A, is free so it is good to apply for that at 65, which means you should have no out-of-pocket hospital expenses except for prescription drugs. You may apply for Part A and B three months before your 65th birthday, the month you are 65, and three months after you turn 65. You can apply at any convenient Social Security District Office, a list of offices is at www.ssa.gov. You may also apply online at www.medicare.gov, which is easier.

“Part B is not free. The current monthly premium is $104.90 per person in 2015 for a couple making $170,000 per year or less, or $85,000 for a single person. Higher premiums are charged if you exceed those income levels. The decision to take Part B is highly individualized. As to whether to enroll in Part B, I’d look at your current state of health, your health risk factors e.g., do you smoke, your weight, lack of exercise, etc., and your family history.

“If one of these is in negative territory, I would consider taking Part B. A combination of Part B and your FEHB plan will eliminate all out-of-pocket expenses for doctors fees, outpatient fees, lab costs, etc. The taking of Part B allows many to choose a cheaper FEHB plan. If all your health signs and lifestyle are positive, however, you probably shouldn’t take Part B, especially if your income puts you in the higher premium category, or if your doctor refuses Medicare assignment. I did not take Part B, as a federal retiree, because I am an infrequent consumer of medical services. So, paying the part B premium wouldn’t be cost effective for me.

“For each year you delay enrolling for Part B beyond 65, a 10 percent late enrollment fee is added to the premium. For example if you retired on or before age 65, and did not enroll for Part B until age 68, you’d pay 30 percent more than if you had enrolled when you were first eligible at 65. If, however, you are employed and covered under an employer sponsored health plan like FEHBP, or if you are covered under a working spouse’s plan, the first 10 percent late fee does not kick in until eight months after you or your spouse retires.

“If you choose to enroll in Part B, you could enroll in a cheaper FEHB plan, like Blue Cross Basic or GEHA Standard, for example. You may change plans at any time beginning on the 30th day before becoming eligible for Medicare. Information about FEHB plans, what they cost and what they cover is found at www.opm.gov/insure. You should not need Part D coverage because your FEHB plan provides generally better drug coverage.”

“If you choose not to enroll in Medicare, your FEHBP provider is required by law to limit their payments to those payments you would be entitled to if you had Medicare.

“Walton Francis puts out the “CHECKBOOK’s Guide to Health Plans for Federal Employees” each year. It can be found at www.guidetohealthplans.com — Walt provides guidance on the Part B issue and which plans work best with Part B.

        Read more: Mike Causey

“There is also a good discussion of this issue at www.narfe.org for NARFE members.” — J.E.

 

Nearly Useless Factoid

By Sam Ufret

If heart health issues run in your family, consider this:

The first known heart medicine was discovered in 1799 in England. Scottish physician John Ferriar noted the effect of dried leaves of the digitalis purpurea, or purple foxglove plant, on heart action. Still used in heart medications, Purple foxglove slows the pulse, increases the force of heart contractions and the amount of blood pumped per heartbeat.

So thank your garden for any medications you take in the future. Chances are, at least one of those plants will end up in your pill box.

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