Posted on Friday, 7th October 2022 by Dennis Damp

Medicare sent out their Medicare and You 2023 handbook last month to current recipients. The initial enrollment period remains the same. Those approaching 65 can sign up for Part A and/or Part B during the 7-month period that begins 3 months before the month you turn 65, includes the month you turn 65, and ends 3 months after the month you turn 65.

If you sign up for Part A and/or Part B during the first 3 months of your Initial Enrollment Period, in most cases, your coverage begins the first day of your birthday month. However, if your birthday is on the first day of the month, your coverage starts the first day of the prior month.

According to Medicare, “If you sign up and are paying for Part A and/or Part B the month you turn 65 or during the last 3 months of your Initial Enrollment Period, the start date for your Part B coverage will be delayed in 2022.”

• Medicare and FEHB Options – What Will You Do When You Turn 65?

New Start Dates

Beginning January 1, 2023, if you sign up the month you turn 65 or during the last 3 months of your Initial Enrollment Period, your coverage starts the first day of the month after you sign up.

If you are approaching age 65 review their 2023 handbook to familiarize yourself with all that Medicare offers.

General Enrollment Period

If you have to pay for Part A but don’t sign up for it and/or don’t sign up for Part B (for which you must pay premiums) during your Initial Enrollment Period, and you don’t qualify for a Special Enrollment Period, you can sign up during the General Enrollment Period from January 1–March 31 each year. You may have to pay a higher Part A and/or Part B premium for late enrollment.

Medicare Premiums 2023

The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022. Here are links to the income adjusted Medicare rates for 2023, they range from as low as $164.90 to a high of $560.50 per month!

• Medicare Part B Income Adjusted Premiums
• Medicare Part D Income Adjusted Premiums

Medicare Resources

• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• A Marriage of Convenience – Medicare & FEHB
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up for Medicare (Part 3)
• Caution – Don’t Lose Your FEHB Coverage

REQUESTING A RMD ON THE TSP WEBSITE

When you reach the age of 72 (or 70½ if you turned 70½ prior to January 1, 2020), you’re required by law to receive a Required Minimum Distribution (RMD) every year. The amount of the RMD is determined by your age and the amount of your savings. Your TSP RMD is listed on the withdrawals and rollover page.

I decided to request my 2022 RMD last week using the updated TSP website online withdrawal process and signed up for electronic funds transfer (EFT). I didn’t realize there is a 7-days waiting period before you can use it and will go back in next week to do the final processing.

Your minimum distribution will be sent in December of each year automatically, unless you withdraw at least this amount yourself. This process protects TSP participants from having to pay a 50% penalty for not taking out an RMD when eligible.

Processing Your RMD

It was a little confusing getting to the withdrawal page. The TSP site was recently updated again. Click on “Quick Links” at the top of the home page or click on the “Withdrawal” icon towards the bottom of the home page. This takes you to a menu where you can select Withdrawals and Rollovers Out. This page lists the amount of your required minimum distribution.

You are presented with three options:

• Annuity Purchase
• Partial Distribution
• Total Distribution

Click on “Get Started” next to the partial distribution heading. Follow the step-by-step guidance and include all information requested. I wanted to set up EFT instead of receiving a check in the mail plus I will use the funds to invest in higher earning Treasury Bills that are yielding considerably more than the G-Fund at this time.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Guide
• TSP Considerations
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Financial PLanning, Medicare, Medicare Signup, RMDs, TSP Withdrawals
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Wednesday, 5th October 2022 by Dennis Damp

The annual Federal Benefits Open Season 2022 starts on November 14 and is open through December 12, 2022. Employees and annuitants can assess the various plans to ensure they are cost-efficient and best address the care and services needed.

The average FEHB premium increase is 7.2 percent for plan year 2023. The new rates were announced this week and a complete list of premiums is available. The overall FEDVIP average premium for dental plans is increasing by 0.21 percent, and the overall average premium for vision plans will decrease by 0.41 percent.

Inflation continues to impact us in all areas, from the grocery store and gas station to health care and everything in between. There is no escaping its impact; today’s higher costs wiped out this year’s COLA months ago.

I checked the premiums for the self-plus-one Blue Cross Blue Shield (BCBS) basic (113) and GEHA standard (316) plans. BCBS monthly premium increased $47.17 to $472.12 while GEHA’s premium increased $28.47 to $320.39. The annual increases are $566 for BCBS Basic and $341 for GEHA Standard!

Now is a good time to compare your current plan to the 271 health plans available for 2023. OPM reports that only 2.5% of enrollees changed their health coverage during the last open season.

• FEHB Open Season for 2023 Plans– Higher Costs on the Horizon
• Medicare Advantage Plans (Heads Up for the Upcoming Open Season)

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Considerations
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2023 FEHB Plans, FEHB Premiums, Inflation
Posted in BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 23rd September 2022 by Dennis Damp

According to estimates by the Administration, this country’s debt to Gross Domestic Product (GDP) soared to 137.2% in 2021, the highest in history! Skyrocketing Inflation is the end result of reckless spending and will disrupt the world economies for years to come.  All administrations have contributed to this travesty.

Retirees are first to feel the brunt of inflation, they have few ways to recover the higher costs they incur daily. Subsequent generations pay the ultimate price for their predecessors reckless spending through higher taxes, reduced services, and a lower standard of living.

FAST AND FURIOUS!!!

This isn’t an action-packed movie-drama, it’s our lives and the facts speak for themselves. Both parties spend money that we don’t have, often times on grandiose plans that fail miserably, with no thought to fiscal restraint.

The IRS collected $4.1 trillion in 2021 and refunded $1.37 trillion for a net collection of $2.973 trillion dollars after refunds. The federal government spent $6.82 trillion dollars in 2021 by borrowed 56.5 cents of every dollar it spent! The federal reserve simply made a book entry for this deficit spending and then purchased that amount of our Treasury bonds to fund the government and flood the country with cash; driving inflation through the roof.

Their excessive spending hasn’t Improved since I wrote “Unreasonable Expectations – The Debt Crisis”  January 2021 when the COVID crisis was the excuse for the shortfall.

When the average family or business requires a major expenditure, other activities are curtailed or eliminated entirely. Retirees on a fixed income must be creative to make ends meet. They dip into their savings, withdraw from their retirement accounts, consider a reverse mortgage if they are fortunate enough to own a home, and buy and do less overall.

That’s life, we can’t have it all and when we spend heavily in one area, it’s essential to cut back in others. The Federal government refuses to balance the budget by offsetting new expenditures with cuts elsewhere.

FIGHTING ANOTHER WAR – AGAIN!

Over $60 billion has been sent overseas to support Ukraine’s war with Russia. I understand the need for humanitarian aid and to help them negotiate a cease fire and peace treaty. However, the military equipment, ammunition, and hardware shipments that we continue to send could easily provoke another long-term war that we can’t afford or win. Some expect a protracted war that could last for years.

The senate is putting together another bipartisan multi-billion-dollar aid package! What we give them requires an equal or greater amount spent to replenish our stockpiles. Their European neighbors only contributed a small fraction of what we gave them to date.

Currently, there are over 30 conflicts worldwide. Wars rage in Ethiopia, Yemen, Syria, the South Sudan, and Ukraine. Instability in Argentina, Venezuela, other African nations, and elsewhere is rampant throughout the world. We can’t resolve everyone’s problems.

BORDER CRISIS CONTINUES UNABATED

In this case, we are protecting Ukraine’s Sovereignty and borders while abandoning ours! Millions of illegal aliens including hundreds-of-thousands of got aways are flooding into our country. The President insists the border is closed and secure while the drug cartels ensure it is wide open for their drug smuggling and human trafficking enterprises. Some support the administration’s contention, however common sense prevails, and the numbers don’t lie.

Last year over 100,000 Americans died from the Fentanyl smuggled across our southern border! The U.S. Customs and Border Protection Services reported that 3,686,466 illegal immigrants crossed our border since the beginning of the 2021 fiscal year. The vast majority were single adults. Unfortunately, major media outlets refuse to cover this crisis; Americans know little about the severity of the situation.

To put this into perspective, the number that entered our country during this time period is more than the combined populations of South and North Dakota, Alaska, Vermont, and Wyoming!

According to The Washington Times, “The U.S. has added more than 2 million immigrants to its population since President Biden took office in 2021, the vast majority of them here illegally.” The immigrant population growth occurred even though about half of those crossing the southern border illegally are allegedly returned to their country of origin!

How long can we sustain this influx of humanity without this country’s support systems collapsing? There is little vetting of those entering our country and none for the got aways. This is a national security, local community, and law enforcement nightmare.

The mayors of New York City, Chicago, and DC are complaining about several thousand immigrants arriving by bus over the past year from the southern border. Imagine what the local communities on the border are going through as tens of thousands enter their towns weekly.

U.S. Customs and Border Patrol Chart

WARS ON STEROIDS

The Vietnam war escalated during the Kennedy Administration soon after military advisors were deployed in country. It didn’t take long before troops, in the tens of thousands, were enroute to this foreign land. My draft notice arrived 5 months after high school graduation when the war was raging, thousands of our youth were dying, and tens of thousands, like myself and many of my class mates, were called to fight this war. The Vietnam War claimed the lives of 58,000 U.S. troops!

Ukraine sounds much like the beginning of the Vietnam war, except in this case we are poking a bear with nuclear weapons and hypersonic missiles that our defense systems can’t shoot down!

Recently a bipartisan congressional delegation suggested placing American military advisors in country. Imagine what could happen with that! Albert Einstein defined insanity as doing the same thing over and over again and expecting different results.

We were attacked on 9/11/2001 and the Afghanistan war began with an international military coalition led by the United States that toppled the Taliban-ruled Islamic Emirate and establishing the Islamic Republic three years later. Instead of leaving, we stayed for 20 years to nation build and support the new Islamic state that was destined to fail. The chaotic withdrawal of American troops last year, accentuated the problem with nation building and the ineffectiveness of our intelligence apparatus.

Forbes reported, “In the 20 years since September 11, 2001, the United States has spent more than $2 trillion on the war in Afghanistan. That’s $300 million dollars per day, every day, for two decades.” Another example of out-of-control spending that was spearheaded by both parties.

We also tried this in Vietnam and Iraq. Many valiant American heroes honorably served during these wars and tens of thousands lost their lives, many others returned home maimed for life. Where does it end? We lost too many lives and treasure to end up right back where it began.

CONCLUSION

With over 500,000 homeless in America, rampant crime and lawlessness, high gas prices, open borders and drug crisis, the country in the midst of a recession, the highest inflation in over 40 years with many families living paycheck to paycheck, and a compromised power grid, our government is abdicating its responsibilities to the American people.

When fires arrive at your doorstep, most rational people would put everything else aside, and douse the inferno! Unfortunately, government appears to be fanning the flames and heading in the opposite direction.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Guide
• TSP Considerations
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Border Crisis, Government Spending, Illegal Immigration, Out of Control Spending, Ukraine War, Wars on Steriods
Posted in ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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Posted on Friday, 16th September 2022 by Dennis Damp

We provided our first 2023 COLA projection update last July. Costs continue to rise and mortgage rates are now up to 6%, almost double from where they were at the beginning of the year. Our COLA will be considerably higher than last year’s 5.9% for CSRS and 4.9% for FERS.

2023 COLA PROJECTIONS

According to Wilbert J Morell III, a retired Navy Engineering Project manager, “If the Inflation trend continues through September, inflation for the last 12 months ending on 30 September will be 8.1%. If the CPI-W remains constant for the month of September, the 2023 Social Security and CSRS COLAs effective on 1 December 2022 will be 8.6%, and the FERS COLA for 2023 will be 7.6%.”

Inflation has moderated a bit and this projection is .4% lower than the last update. Review how COLAs are calculated and annual COLA allocations back to 1999. With supply chain issues continuing and the potential strikes within the transportation sector, the 2023 COLA could end up higher.

Wilbert tracks these statistics monthly and is highly knowledgeable about our federal retirement benefits.

TREASURY BILL YIELDS CONTINUE TO RISE

In my article titled “Ditch your Bank’s Low Savings Rates” I described the advantages of Treasury bills (T Bills) and in a subsequent article I outlined how to ladder them to take advantage of the rising rates. What continues to astounds me is that my local bank and credit union has kept their savings rate at a mere .04% all this time!

When I started purchasing 4 and 8-Week bills last February they were yielding slightly more than my local bank and credit union savings rate. The 4-week bill rate has increased to 2.540% as of September 13, 2022, just 9 months later. The 8-week bill now yields 2.816%; the 52-week bill is 3.603% and higher than the 10-year note rate! The rate chart below lists Treasury Bill performance for September of this year.

Late September the Federal Reserve is expected to raise the rate by at least .75% to as high as 1%. T Bill rates will rise accordingly. It is estimated that the fed rate will be in the mid 4% range or higher by years end.

Banks take advantage of their depositors knowing they are generally reluctant to move funds from their savings to higher earning options. A person with $50,000 in his or her bank savings account earning .04% interest receives $20 a year for keeping those funds in the bank. Moving that same amount to a 52-week T Bill currently earning 3.603% would earn the depositor $1,801, or $1,761 more than their bank would pay them!

I’ve kept my 4 and 8-week ladders reinvesting for the near term until the rates plateau; then I plan to convert them to either 52-week bills or longer-term notes depending on how high the rates move. Interest rates reached 16.63% in 1981 and many locked in longer term notes, bills and bonds at very high rates, in the low to mid-teens!

TREASURY NOTE RATE CHART

PURCHASING TREASURY BILLS

As I stated in the past articles on this subject you can purchase Treasuries direct from the government at www.treasurydirect.gov or thorough your stock broker. Generally, I purchase short term bills direct from the government. Longer term notes, bonds, and TIPs are best suited for your brokerage account.

If you are holding long term notes, bonds and TIPs you can only sell them on the secondary market before maturity. Treasury Direct canceled their sell direct program some time ago. Owners must transfer Treasuries they want to sell before maturity to their private brokerage account to sell them on the secondary market; it can take months for the government to complete the transfer.

I elect the new issue auction option when purchasing Treasuries through my brokerage account. If you buy previously issued Treasuries you could end up paying a high premium if the newer issued notes and bonds are paying a higher coupon rate.

EARNINGS RETURNED TO YOUR SAVINGS

When you purchase Treasury Bills you buy them at discount. In other words, if you buy a $10,000 (26-Week T Bill) earning 3.576%, the Treasury withdraws $9,821.20 from your account. At maturity, 26 weeks later they deposit $10,000 back to your account. If you choose to reinvest, the Treasury deposits the earnings back to your account until the final maturity date when the full amount is returned.

This is confusing to some, in the above example the $10,000 would earn 3.576% or $357.60 if held for one year. When you buy a T-Bill for less than a year the earnings are prorated. In this case you would receive half a year’s interest, $178.80.  If you purchased a 52-week T-Bill you would buy it for $9,642.40; at maturity $10,000 would be returned to your account.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Guide
• TSP Considerations
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2023 COLA, Savings Options, Treasury Bill Yields
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 9th September 2022 by Dennis Damp

The past eight days were certainly different than expected. By all reports, COVID for those vaccinated would have been mild to moderate. We received our first two shots early on and a booster about 8 months later. During a recent visit to our PCP, we were advised to hold off on another booster.

I lost my nephew to this disease early on and we didn’t take COVID lightly, wore masks, used hand sanitizer, social distanced up until the past few months and avoided large gatherings. Most of our shopping was relegated to the early hours, shortly after the stores opened and we continue this practice.

THE ONSET

My wife and I are high risk due to our age and medical conditions that warrant caution. I have asthma and paroxysmal A Fib. Our daughter and granddaughter visited Saturday and both tested positive for COVID late Sunday. By Monday Mary and I had sore throats and a cough. Soon after cold chills, headache and pretty much the laundry list of symptoms arrived shortly thereafter.

By Tuesday we both tested positive and had full blown COVID: high fevers, chills, deep coughs, you name it we had it. We didn’t sleep at all Monday or Tuesday nights.

EARLY INTERVENTION

Fortunately, my wife read about two new antivirals recently, Paxlovid and Lagerrio. Both were approved for emergency use for high risk COVID patients. Our PCP prescribed them and we started treatments Wednesday night.

The side effects of the antivirals were significant. I was taking asthma meds including my emergency inhaler up to three times a day and coincident with the Paxlovid at times. A mistake, I won’t repeat if I ever have to take this treatment again. Taking these together pushed me into frequent A Fib attacks. The drug also produces a strong metallic taste that lasts throughout the day. The only way to moderate it was by chewing Extra Long lasting Polar Ice gum.

I called our PCP two days into the antiviral treatment about the adverse side effects and he advised us to stay the course, if at all possible, but stop if the side effects became unbearable. Fortunately, we listened to him and stayed the course.

If you end up using Paxlovid or one of the other antivirals down the road, carefully check for drug interactions. I had two prescriptions drugs I couldn’t take with the antiviral.

RECOVERY

Without the antivirals, things could have gotten much worse. We took the medication twice a day for 5 days, 3 pills in the morning and three again in the evening. By the end of the treatment most symptoms subsided. Several days later we felt much improved. Anytime I have a respiratory infection my asthma symptoms are elevated for several weeks. I’ve had flu several times over the years and COVID was far more severe and draining.

Now that we actually had COVID, natural immunity should kick in and protect us for the next six months to a year or more. A recent study published last January in the New England Journal of Medicine shared findings that supported natural immunity providing greater protection from COVID infection than multiple vaccinations. This wouldn’t preclude us from getting another shot for new variants.

PROJECTED ANNUITY CALCULATOR ALERNATIVE USES

I recently featured our updated Projected Annuity Calculator and received a number of suggestions on how it could be used to determine projected growth in other areas.  One reader is using it to estimate her Social Security earnings over the next few decades.

It’s easy to do, pull up the spreadsheet and  enter the year, your current Social Security annual benefit, what you consider to be an average COLA growth over time, and your age. The readout under the column “Projected Annuity with Survivor’s Benefit” will show the potential growth over the next 40 years. Those in the private sector can also use the estimator if they have a COLA adjusted annuity from their employer, although that is fairly rare these days.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Social Security Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up for Medicare(Part 3)
  • Caution – Don’t Lose Your FEHB Coverage
• Medicare Part B and FEHB Update (Part 4)
• How to Delay Part B Premiums
• Budget Work Sheet

Tags: COVID, COVID SYmptoms, Paxlovid Antiviral, Surviving COVID
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 2nd September 2022 by Dennis Damp

I discussed the Medicare Advantage Plans associated with our Federal Employees Health Benefits (FEHB) last year during open season. These are relatively new and low-cost options that retirees can change to if they have a FEHB plan and Medicare A and B.

Many are attracted to them because they are lower cost and offer partial Medicare Part B reimbursement. The issues around these plans deal with coverage and provider availability. You have to use preferred providers in their plans and because the plan becomes your primary provider, you often require preapproval or authorizations for many procedures.

VICKI’S ISSUE

Her husband retired from the postal service 7 years ago.  They carried BCBS basic for their insurance plan as well as Medicare part A & B. Last year they switched to the Aetna Medicare Advantage Z26 plan.  It seemed like a significant savings for us and also offered Silver Sneakers as a perk, so we switched.  Now I am wondering if we did the right thing.

BCBS/Medicare was always excellent in handling our medical needs. Anytime I needed a procedure, I got it done, no questions asked. If my doctor felt I needed the procedure, I had it done, no waiting.  We rarely spent anything out of pocket.

With this Aetna plan, it seems like we have to jump through hoops in order to get things done. I needed an MRI and Aetna insisted I complete 6 weeks of physical therapy or go through a complaint process. In the meantime, my problem got worse with physical therapy. I had to call my orthopedic doctor 3 times in order to ask him to call Aetna so they could approve this MRI. This process started mid-May and I finally got an MRI at the end of August!  Other issues required pre-approval before I could get the services I needed.  I didn’t have this problem with BCBS and Medicare A & B.

With money getting so tight, I hate to have to pay the higher BCBS premiums, but when your health is at stake……. what can you do.

My REPLY

Sorry to hear about your problems. I did not switch to a MA plan for a number of reasons. The article I wrote on the subject titled, “FEHB Medicare Advantage Plans (Proceed with Caution),” discusses some of the issues you are talking about.

Once you go to a Medicare Advantage (MA) plan, that insurance company becomes your primary provider and Medicare pays them to handle your health care needs. How the MA providers make money is to manage their program to cut costs. That’s why you have to go through the additional steps. In your case it is much cheaper for the plan to pay 6 weeks for physical therapy than pay for an MRI.

I remained with GEHA Standard and pay $291.92 for Self Plus One. Medicare remained my primary provider which is beneficial in most cases. For example, your provider insisted you take 6 weeks of PT before they would authorize an MRI. I had an MRI for my back problems last month and was taking PT as well. GEHA does not require pre-authorization since Medicare is our primary provider and I got it two days later. GEHA picks up what Medicare doesn’t.

Unfortunately, my wife has had many eye operations for glaucoma over the past 6 years and I had several operations as well and we paid zero for everything, I also have major back issues. We only pay prescription copayments. Here is a link to the article I wrote comparing BCBS Basic to GEHA Standard.

GEHA Standard to BCBS Basic Plan Comparison – 2022

GEHA Standard doesn’t provide any Medicare Part B reimbursement but is much cheaper than BCBS Basic that for us that wasn’t an issue. Our coverage is exceptional and it would take a lot for my wife and I to change.

Fortunately, you can always change back to a standard FEHB plan next open season.

SUMMARY

I received several other emails from newsletter subscribers discussing their problems with the new MA plans. Most were concerned with limited facility availability in their area. One indicated he had to travel over a 100-miles to get a procedure done at a plan’s preferred provider.  Others had similar problems to Vicki.

Before changing plans, check out their provider network as I discuss in the article I wrote on this subject. Many still think Medicare is their primary provider when they switch, they are not. With Medicare you can use any facility that accepts Medicare; you generally won’t need pre-authorization for many services.

Before changing to another plan investigate it thoroughly, cost is certainly a factor but nothing is more important than your health. As I and my wife age, our healthcare needs have unfortunately increased dramatically. I’m writing this article after my wife and I tested positive for COVID three days ago. We had all three shots, the last one only 6 months ago!

The new antiviral Paxlovid was prescribed by our PCP and it is starting to work, however the side effects are a lot to deal with. Mary’s fever was 103.6 last night!

These plans may be cost effective for those who understand their limitations and realize they must use the insurer’s provider network. If things don’t work out to your satisfaction, you can always change back to a traditional FEHB plan next open season.

Prepare for the 2022 FEHB Open Season now.

This past two years we were told many things about COVID that proved not to be true and that sounds much like disinformation today. Yet, the doctors and scientist that warned us about being overly optimistic, potential side effects, questioned the origin of the virus, and supported natural immunity were censored, their social media accounts closed, and many were fired!

In my humble opinion, disinformation is a false premise. COVID is the perfect example. There are many sides to a story and when we stifle other opinions, perspectives, and voices, we close our minds to what might ultimately be the best solution. True scientific inquiry requires listening to all possibilities or we would still be in the dark ages insisting the world is flat.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Social Security Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up for Medicare(Part 3)
  • Caution – Don’t Lose Your FEHB Coverage
• Medicare Part B and FEHB Update (Part 4)
• How to Delay Part B Premiums
• Budget Work Sheet

Tags: FEHB Health Care Plans, MA Plans, Medicare Advantage Plan Caution
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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Posted on Friday, 26th August 2022 by Dennis Damp

Forward this to others that may find this information helpful.
They can sign-up to receive my free Retirement Lifestyle Newsletter.

Our updated excel annuity calculator spreadsheet projects your annuity and maximum survivor benefit growth through 2061 using an estimated average annual Cost of Living Adjustment (COLA). This calculator was developed by Frank Cullen, an old friend. We both retired from federal service many years ago.

Projected CSRS / FERS Annuity Calculator (Sample)
(Enter your estimated annuity and Average COLA)

In the sample chart above, the retiree’s annuity increases 81% over the next twenty years with a projected average COLA of 3%. This estimate could be conservative considering the runaway inflation we are experiencing now and for the foreseeable future. If stagflation takes hold, as many economists expect, the average annual COLA could be higher.

Those planning their retirement can use this spreadsheet to estimate the growth of their annuity and their spouse’s survivor benefit over time. Use your actual annuity or estimates you receive from your human resource office, if still employed, for these projections.

Deciding When To Retire – A 7-Step Guide

This spreadsheet, originally developed for CSRS retirees, accurately determines your projected monthly and annual annuity, based on an estimated average COLA growth rate, with and without survivor benefits for 40 years and your survivor’s annual and monthly annuity. FERS retirees can use this spreadsheet with minor adjustments as noted below and on the excel form.

Current federal employees doing advanced planning can use our FERS Annuity Calculator or CSRS Annuity Calculator to estimate what their annuity would be for various target retirement dates.

A list of annual COLAs going back to 1975 for CSRS and to 1995 for FERS is provided on the spreadsheet and includes the average 2, 3, 5, 10 and 47-year COLA average growth rate to give you an idea of what to use for your estimate.

When I ran my numbers back in 2004, I used 2.5% and my annuity and survivor’s projections were close to the chart’s results for the 17 years I’ve been retired. The average COLA over the past 47 years is 3.68%, during this period COLAs ranged from as low as 0% for two years to as high as 14.3% in 1980! This year’s COLA was 5.9% for CSRS and 4.9% for FERS. The COLA for 2023 is expected to be even higher.

Projected Annuity Calculator (Download the Excel Spreadsheet)

Download and use the Projected Annuity Calculator to determine your potential annuity growth for you and your spouse. Enter your personal information in the 4 yellow blocks provided: the year you retire, annuity, an estimated average COLA, and your age at the beginning of the year. If the Excel chart opens in protected mode, click on “enable editing” at the top of the spreadsheet.

FERS EMPLOYEES

For FERS employees the projected annuity without survivor benefit will be the same; just enter your annuity or annuity estimate, age, year of retirement, what you consider to be a realistic COLA growth rate, and the spreadsheet will calculate your annuity for the next 40 years! The column reserved for your projected annuity with survivor benefits will be lower since the maximum spousal benefit is 50% for FERS, not the 55% for CSRS.

To calculate the FERS survivor’s benefit, multiply the “Projected Annuity Without Survivor Benefits” by .50 and then divide this number by 12 to determine the monthly survivor benefit. For example, in the chart above multiplying the first row’s 2022 “Projected Annuity Without Survivor Benefits” of $51,200 by .50 equals $25,600. Dividing this by 12 provides your spouse with a monthly annuity of $2,133.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Master Retiree Contact List
• Budget Work Sheet
• TSP Guide
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Social Security Guide
• Survivor’s Checklist (pdf)

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Annuity Calculator, Annuity Projections, CSRS Annuity Projections, FERS Annuity Projections
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 12th August 2022 by Dennis Damp

Please forward this to others needing retirement planning assistance.

Those planning their retirement and annuitants require accessible resources for answers to their individual and unique questions. OPM does a good job managing our retirement system overall. However, there are limits to what they can provide. It’s often frustrating and difficult finding competent help and the level of assistance required. There are many variables to what initially might seem like an obvious resolution; it makes sense to seek out clarifications.

Can you afford to retire today, considering the current state of affairs? Stock markets are in turmoil, retirement account values are plummeting while rampant inflation rages throughout the country. Tammy Flanagan replied to a comment she received from a person who was having second thoughts due to this economic situation. She brilliantly addresses this issue targeted to the individual in question. Tammy’s article titled, “Second Thoughts on Retiring This Year – Inflation makes a would-be retiree feel like a deer in the headlights” is thought provoking and a must read for those in similar circumstances.

Retirement planning is of and in itself a complicated process with many avenues to explore. Fortunately, help is available; what service you require depends on the complexity of the issues and the level of assistance you personally need.

LEVELS Of ASSISTANCE

• General Assistance (Try these resources first)
• Comprehensive Guidance
• One-on-One Counseling / Assistance

GENERAL ASSISTANCE

OPM

The Office of Personnel Management (OPM) is the HR department for the federal government; they administer the retirement benefits program. Active federal employees can research various aspects of retirement on OPM’s site. However, they must contact their agency’s HR office for retirement forms processing and guidance.

OPM services the retirement community directly; If you are an annuitant (retiree), call or use their online services portal to obtain current benefit information, related documents, and payment statements online if registered for their service.

I can see eyes rolling when I suggest calling OPM. Yes, it is difficult getting through to them by phone. I dial their number, 888-767-6738; if it’s busy, I hang up and immediately click redial. I typically get through in several minutes using this technique. Expect long waits. OPM can access your records and it is the only entity that can effect desired changes or update your records.

• Phone Number: 1-888-767-6738, TTY: 855-887-4957 weekdays only.
• Email: retire@opm.gov
• Website: https://www.opm.gov/retirement-services/
• Annuitant’s Online Services: https://www.servicesonline.opm.gov/

NOTE: ServicesOnline.opm.gov recently changed how you access your account.

Federal Employee’s Retirement Planning Guide (www.federalretirement.net)

I launched this site in 2004 when I was planning my retirement. It is designed to help federal employees and retirees find the information they need to make informed benefit and retirement decisions.  Abundant retirement planning guidance is compiled from a multitude of federal agencies: OPM, Social Security, Medicare, TSP, the Department of Labor and others. Use the main menus and search box at the top of each page to find benefit clarifications, financial planning guidance, FERS / CSRS eligibility determination and annuity estimates, general explanations, examples, and suggestions that you won’t find elsewhere. The related blog and weekly email newsletter offer guidance on current topics of interest.

• Website: https://www.federalretirement.net/
  • The Ultimate Retirement Planning Guide
• Retirement Planning Blog https://www.fedretire.net
• FREE Retirement Planning E-Mail Newsletter
  • Sign up

COMPREHENSIVE GUIDANCE

Retirement Planning Seminars

Contact your HR department to find out when retirement planning seminars are scheduled for your area. They cover CSRS and FERS employees, (including Special provisions) and may be offered in Full or Half-day sessions. The information is generally divided into seven key areas:  CSRS or FERS retirement annuity, Thrift Savings Plan (TSP), Voluntary Contribution Plan (VCP) – CSRS and CSRS Offsets only, Federal Employees Group Life Insurance (FEGLI), Social Security, Federal Employees Health Benefits (FEHB), Federal Employees Dental and Vision Insurance Program (FEDVIP) and disability programs.

Federal Employee’s Retirement Planning Software (https://fedretiresoftware.com/)

This easy-to-use and reasonably priced software is uniquely designed for federal employees (full-time, regular CSRS & FERS) to calculate all of your federal benefits up to and throughout retirement. You can also add income and/or expenses from other sources.  For example, if you have other income from a rental, pension, retirement account or other expenses from a mortgage, credit card debt, living expenses, etc., you can add those in for a more comprehensive look at all income versus total expenses.

This calculator is used by tens of thousands of federal employees as well as Federal HR depts across the country who appreciate their accurate and comprehensive reports. Use this software to make informed, financially literate decisions in planning your retirement. Checkout their Sample Report to get a better understanding of just how comprehensive their calculator is for all federal employees planning their exit.

Federal Retirement Software is offering an exclusive discount available only through FederalRetirement.net.  For a limited time, pay only $24/year (regularly $99/year). CLICK HERE to take advantage of this incredible offer.

Federal Retirement Report – A 27-page Personal Retirement Report Summary.

RP & A Financial Strategies develops personalized 27-page written Federal Retirement Reports™ customized to your specific situation and includes a summary of all benefits, TSP investments, and annuity estimates with projections. This service costs $179 and includes a one-hour, one-on-one, session with their federal retirement specialist to review your report and answer any questions you may have. A moneyback guarantee is offered if you aren’t completely satisfied with their services. They also offer a one-hour personal consultation with a Certified Financial Planner (CFP) at no additional cost if desired.

• Request a Report: https://www.federalretirementreport.com/

ONE-ON-ONE COUNSELING / ASSISTANCE (Finding someone to talk to)

Often, individuals need to talk with an expert to address complex issues and make informed decisions about what is best for their situation. It is difficult finding anyone to call or email that you can trust and get the information you need. Here is a list of those you can contact to help you address your concerns when the research you’ve done hasn’t provided an answer.

Call Your Agency’s HR Department (Federal Employees)

Federal employees with retirement questions should contact their HR department, if you call OPM they will refer you back to them. OPM only service annuitants and survivors. Your HR department will provide annuity estimates for multiple target retirement dates, explain your benefit options, and arrange for you to attend a retirement seminar.

Columnists

Many columnists, like myself, reply to email questions. Generally, I’ll send a reply with links to relevant sections of my website, related blog articles, and to OPM guidance that will help. When I’m asked to provide one-on-one counselling, I refer them to the professional counselors listed below under Retirement Planning Consultants.

You can also sign up for our email newsletter or review past articles of interest that are posted on our blog. Over 350 articles are listed on our article index.

• Article Index
• Retirement Planning Blog
• Sign up for our Retirement Planning Newsletter

Retirement Planning Consultant – All Areas

A professional federal benefits consultant can address your concerns and answer any questions that you may have. If they don’t have the immediate answer, they have the contacts and resources to obtain them.

Retire Federal, https://www.retirefederal.com/, a consulting firm owned by Tammy Flanagan, a federal benefits expert who has been assisting feds since her days of employment with the Federal Bureau of Investigation. She and her staff of experienced counselors offer invaluable fee-for-service personal consulting for civilian federal employees and annuitants on pre-retirement retirement prep to post-retirement decisions and events. They will assist you with a thorough review of your pre-retirement tasks. They also specialize in helping you decide about Medicare Part B and which FEHB plan will coordinate best for your situation. They can address your concerns, answer questions, recommend options, provide details as to why one path is preferred over another, and put your mind at ease.

Consultant – Divorce Related Issues for Federal Employees

Ann Ozuna is a retired Personnel Management Specialist.  She founded Personnel Solutions Federal Benefits Counseling upon retirement from federal service in 1996. In addition to her 25-year federal personnel career, she holds an MBA from Gonzaga University and the Senior Professional in Human Resources (SPHR) and Chartered Federal Employee Benefits Consultant (ChFEBC) designations. She provides consulting services for federal employees facing divorce and attorneys working with federal clients.

• Divorce Considerations
• Don’t Get Burned by Your Old Divorce Decree
• Contact: (509) 993-2283

If you need answers to retirement questions or don’t know what options are best for you and your family, use the resources listed above or other reputable services.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Master Retiree Contact List
• TSP Guide
• TSP Considerations
• Medicare Guide
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: CSRS, FERS, Retirement Counseling, Retirement Planning, Retirement Planning Assistance
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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