Posted on Friday, 16th December 2022 by Dennis Damp

Yes Virginia, there is a Santa Clause. This time of year, the Thrift Savings Plan (TSP) sends out participant’s Required Minimum Distributions (RMDs), and in early January our annuity statements will arrive reflecting an 8.7% for CSRS and 7.7% FERS COLA increase.

The first year you are 72 or older and separated from service is called your first distribution calendar year. If you do not withdraw enough to meet the requirement during your first distribution calendar year, the TSP is required to disburse your first RMD to you by April 1 of the following year. That date is called your required beginning date, and it happens during your second distribution calendar year.

For administrative purposes, the TSP will issue this RMD on March 1 or the last business day before March 1 of your second distribution calendar year. Your RMD deadline for your second distribution calendar year is December 31 of that same year.

In the years that follow, you’ll receive your RMD in December if not withdrawn earlier. If you don’t take your first RMD by December of this year, you will receive two distributions next year; this could lead to increased Medicare Part B premiums the following year if you aren’t careful.

For additional RMD information refer to the following two articles that I wrote on this subject last year:

• Required Minimum Distributions (RMDs) – Are You Ready?
• RMDs Revisited – Clarification

ANNUITY STATEMENTS

Federal annuitants receive their updated Annuity Statement, with the COLA increase added, early January. In February, you will receive another Annuity Statement showing FEHB healthcare and FEDVIP premium changes. New statements are sent out throughout the year whenever there are changes to checking/savings allotments, income tax withholding, and long-term care insurance, etc.

The January statement provides annuity and benefit information for you and your family. It includes the annuitant’s Claim number, the amount withheld for each item deducted from your annuity payment, and your gross and net payment. It specifies the monthly survivor annuity currently payable in the event of the annuitant’s death and includes an annual Notice of Survivor Annuity Election Rights. You will also find OPM contact information.

Instructions are included for making benefit elections such as how to apply for a survivor election for a spouse you marry after retirement, survivor annuity elections for a former spouse, and others. This is an important document and should be readily available if you or your survivor need to contact OPM or require benefit clarifications.

1099 R TAX STATEMENT

Last year the 1099Rs were sent out mid-January. I received mine January 14^th. A portion of our federal annuity isn’t taxable, this document includes your gross and taxable amounts in block 1 and 2a. The amount withheld for federal income tax is listed in block 4 and block 5 lists employee contributions including our FEHB health care premiums. One of the more interesting blocks is 9b (Total Employee Contributions). I’ve been retired 18 years; what I paid into the system was paid out to me within the first two years! We have exceptional retirement benefits.

OPM’s RETIREMENT SERVICES WEBSITE

Your annual statement, 1099R form, insurance and annuity verification letters and much more is available on OPM’s Retirement Services Website. You must register to gain access. If you aren’t registered read the article titled “Connect to OPM’s Online Services” to understand the registration process and sign up. It doesn’t take long, however, you may have to wait for your password to be sent via regular US mail; that can take several weeks.

Starting in  2023 you can elect to receive your annual notice of survivor annuity adjustment along with your annuity statement and 1099R electronically from your Services Online account. The annual notice will be available for viewing in mid-December and the 1099R in mid to late January. You will receive an email from OPM when these documents are available.

To opt into electronic delivery, simply log into www.servicesonline.opm.gov and update your communication preferences in your Profile.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Considerations
• Medicare Guide
• Social Security Guide
• Budget Work Sheet
• Federal Retiree’s Master Contact List (PDF fill-in- form)

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: 1099R, Annuity Statements, CSRS, FERS, RMDs, TSP
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 2nd December 2022 by Dennis Damp

For most federal annuitants, FEHB Medicare Advantage (MA) plans will be the cheapest option next year. They combine low out-of-pocket healthcare expenses—sometimes $0 besides prescription drugs— with a Part B premium reduction. We’ll cover how they work, how much money you can save switching from popular FEHB plans, and who shouldn’t join an FEHB MA plan.

How They Work

FEHB MA plans require you to be enrolled in both an FEHB plan and Medicare Parts A and B. Most of these plans have $0 out-of-pocket costs for approved healthcare services from providers that accept Medicare, except for prescription drugs. All reimburse or reduce some or all the Medicare Part B premium.

Because prescription drugs will be the only significant out-of-pocket expense you’ll have, it’s important to carefully check each plan’s prescription drug formulary to see how much you’ll pay.

These FEHB MA plans offer advantages because you have dual FEHB/MA enrollment. For example, a married couple with one spouse younger than 65 could join one of the plans and rely on FEHB benefits for the younger spouse until they turn 65, with the older spouse enjoying the enhanced MA benefits from the beginning of the new plan year.

These plans’ benefit structure produces major cost savings compared to other popular FEHB plans.

Traditional Medicare Verses Medicare Advantage Part C

You can get your Medicare benefits through Original Medicare (parts A and B), or a Medicare Advantage Plan (Part C). If you have Original Medicare, the government becomes your primary health care provider and pays for most medical costs when you get hospital or physician services covered by Medicare. Your FEHB plan becomes your secondary provider and pays most of what Medicare doesn’t.

Medicare Advantage Plans, sometimes called “Part C” or “MA Plans,” are offered by private companies approved by Medicare. Medicare pays these companies to cover your Medicare benefits.

For most beneficiaries, the government pays a substantial portion—about 75 percent—of the Part B premium, and the beneficiary pays the remaining 25 percent. When you enroll in a Medicare Advantage plan, the provider receives the 75% Medicare pays plus the FEHB premium, the MA plan becomes the primary provider.

These plans are able to profit and return a part of your part B premiums through efficiency improvements, requiring pre authorizations for certain procedures, and many plans limit care to their provider network.

How Much Money You Can Save

Checkbook’s Guide to Health Plans ranks all FEHB plan options, including FEHB MA, based on a total cost estimate that’s a combination of for-sure expense (premium) plus likely out-of-pocket costs you’ll face based on age, family size, and expected healthcare usage.

For example, the Checkbook Guide estimates that a D.C.-area couple enrolled in Medicare Parts A & B with income below $194,000 could save $7,990 in estimated total costs next year by switching from BCBS Standard to United Choice Primary Retiree Advantage.

The Consumers’ Checkbook Guide is available in print and online formats. Federal Retirement site visitors and newsletter subscribers can order the Consumers’ Checkbook Guide and save 20% by entering promo code FEDRETIRE at checkout. Online access is $13.95, the hard copy version is $16.95, or pay only $20.95 for both online and hard copy, less 20% with promo code.

OPM’s Plan Comparison Tool is another option you can use. It compares up to three plans side by side, however it isn’t as comprehensive as Checkbook’s Guide.

Where Are the Plans Available?

It depends where you live. Aetna Advantage Medicare Advantage is a PPO plan available nationwide, United Choice Retiree Advantage plans are in about half the country, and Kaiser Medicare Advantage plans are available on the West Coast, Hawaii, Colorado, Georgia, and Mid-Atlantic states. There are also MA plans offered nationwide by APWU and MHBP, and restricted-enrollment MA plans offered by Rural Carrier and Compass Rose.

There are additional FEHB MA plans for annuitants to consider in 2023. SAMBA High and Standard, NALC High, and Foreign Service are national PPO options, and UPMC Standard, Kaiser Standard Mid-Atlantic, and Kaiser Standard Georgia are HMOs.

How to Enroll

Enrollment in MA plans requires three steps that should be completed in the following order:

1. If you’re not already enrolled in Medicare Part B, apply at gov. You won’t be able to join an MA plan without first being enrolled in Part B. That takes the longest, so start here.
2. Enroll with OPM in the FEHB plan that corresponds to the MA plan you want to join.
3. After you’ve enrolled in the FEHB plan with OPM, wait a few days for OPM to update the insurance plan and then call the MA plan directly to enroll.

Who Shouldn’t Consider FEHB MA Plans

If you fall into one of the high-income categories—more than $97,000 for individuals or $194,000 for couples—Part B is of limited financial value due to the higher premium. With FEHB MA plans, you’ll get hit twice with Income Related Monthly Adjustment Amounts (IRMAA), which means you’ll be paying both a higher Part B and Part D premium.

Additionally, if you spend a large portion of time overseas, only one FEHB MA plan (UnitedHealthcare) provides reimbursement for routine overseas care. Of course, since you stay enrolled in an FEHB plan with any FEHB MA plan, you’ll always have the emergency overseas care coverage that every FEHB plan provides.

Other things to consider are the medical benefits and coverage associated with the plan, if pre-authorizations are needed for certain tests, and are providers in your area. Review the articles I wrote about issues that our newsletter subscribers encountered with their MA plans last year before:

• Medicare Advantage Plans (Heads Up for Upcoming Open Season)
• FEHB-Medicare Advantage Plans – Proceed with Caution

The Final Word

Unless you’re subject to higher Part B premiums due to your Modified Adjusted Gross Income (MAGI), FEHB MA plans are likely the least expensive plan option in 2023.

If you’re a higher-income beneficiary, you’ll be subject to higher Part B premiums equal to 35, 50, 65, or 80 percent of the total cost and may be required to pay Part D premiums.

The savings available to annuitants who join low-cost FEHB MA plans are significant. Even if you’re relatively satisfied with your existing FEHB plan, consider whether joining an FEHB affiliated MA plan will offer you comparable or better benefits than you’re currently receiving at a lower cost.

This article is a collaboration between Kevin Moss of Checkbook.org and Dennis Damp, host of www.federalretirement.net. Kevin Moss is a senior editor with Consumers’ Checkbook. Checkbook’s

Helpful Retirement Planning Tools

• 2023 FEHB Plan Selection Guide
• Blue Cross Blue Shield Basic to GEHA Standard Plan Comparison – 2023
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Budget Work Sheet
• Social Security Guide
• Retiree Master Contact List

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.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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Posted on Friday, 25th November 2022 by Dennis Damp

Please forward this to all federal employees,
annuitants, and survivors

Each year we publish numerous articles about the current open season’s (FEHBs) available plans, and we send out an updated “Open Season Selection Guide.” We also publish various FEHB plan comparisons, point out coverage concerns, new plan features, and relay the concerns of our readers that had coverage or service problems.

Update

Before proceeding with Scott’s concerns, Doug contacted me last week about a calculation error in my last article concerning the BCBS Basic to GEHA Standard Plan Comparison. I used the 2022 BCBS Basic plan’s monthly rate of $424.87 for the total 2023 costs. The 2023 monthly rate is $472.12. Here is the correction:

Combined FEHB and Medicare Premiums

Both Self-Plus-One members enrolled in Medicare A and B have to pay a Medicare premium of at least $164.90 per month for a combined total of $329.80 as noted in the following calculations.

Your monthly health insurance cost would be as follows, assuming both are enrolled in Medicare Parts A & B and the couple is earning $194,000 or less a year:

• BCBS Basic – $472.12 + $329.80 = $802.01 monthly, $9,624.12/year)
• GEHA Standard – $320.39 + $329.80 = $650.19 monthly, $7,802.28/year)

Medicare Part B Reimbursement

BCBS Basic members apply for and each receive a $800 Medicare Reimbursement for a Self Plus One enrollment, the adjusted annual costs would be reduced to $8,024.12/year in the above example. That’s $1600 a year for a Self-Plus-One enrollment when both have Medicare A & B. The blog article has been updated.

Scott’s Concerns

Scott, one of our site visitors, recently thanked us for the information we provide. He asked why none of the websites, including the governments, provides definitive answers for those who need to synchronize their FEHB benefits with Medicare?

He further states, “to answer them you would have to download every plan BOOK (over 100 of them) and calculate the answers manually (assuming they actually give this information in their benefits book).” There is a solution to this as noted below.

Observation

Scott has a good point, there are many plans to choose from and the review process can be overwhelming. That is why I focus so much energy during open season writing articles on this subject; provide a clearing house for plan resources, costs, and tools to make an informed decision.

Federal employees and annuitants are fortunate to have abundant plans available from nationwide Fee-For-Service plans, HMOs, High Deductible Health Plans (HDHP), Consumer-Driven Health Plans (CDHP), to FEHB Medicare Advantage (MA) Plans to choose from.

Many in the private sector aren’t so lucky, they often have a handful of plans available; some companies limit theirs to high deductible plans.

Answers Can Be Subjective

I listed his first three questions, there were 6 total; three dealt with FEHB sponsored Medicare Advantage (MA) plans. A MA plan comparison article will be forthcoming.

• Which FEHB plans provide the highest benefit when combined with Medicare A&B?

What the highest benefit is to one may not be to another. Each plan lists their benefits with limitations in Section 5 of the plan brochure. Once you identify a cost-effective plan, review the benefits side by side to other plans of interest to ensure they cover your unique needs. Section 9, Coordinating Benefits with Medicare, outlines what costs are waived for those enrolled in Medicare.

I wear hearing aids; my plan pays $2,500 every three years for replacements while others have minimal coverage or only authorize replacement every 5 years. I can use any provider that accepts Medicare while others only offer service within their provider network.

• Which FEHB plans provide the lowest cost when combined with Medicare A&B?

This depends on several factors including a person’s income, and other out-of-pocket average medical costs. Even with Medicare Part B partial reimbursement, other FEHB plans can be less expensive. Many select a lower cost FEHB plan when they sign up for Medicare because most FEHB plans waive the coinsurance, copayments, and deductibles for those enrolled in Medicare A and B.

Medicare premiums are income adjusted from a low of $164.90 to as high as $560.50 monthly depending on your Modified Adjusted Gross Income (MAGI). You may have to pay significantly higher Part B premiums when you add your retirement income to any capital gains, interest income, withdraw funds from a retirement account, or take Required Minimum Distributions from your TSP and IRA Accounts.

Another consideration for higher earning participants enrolled in a MA Plan, you may have to pay Part D premiums.

• Which FEHB plans allow you to use any provider that accepts Medicare reimbursement?

Providers offer plans that cover in and out-of-network coverage. I recently published an article titled, “Blue Cross Blue Shield Basic (BCBS) to GEHA Standard Plan Comparison – 2023.” BCBS is the largest carrier and GEHA’s standard plan offers one of the lowest cost plans for those on Medicare.

The BCBS Basic plan only covers in-network providers; you are responsible for all costs if an out-of-network provided is used. BCBS does cover out-of-network providers if you enroll in their higher cost standard plan. GEHA covers any provider that accepts Medicare.

Both of the comparison tools listed in this article provide this information for any of the plans.

The Solution

The Consumers’ Checkbook 2022 Guide to Health Plans is what Scott and many others are looking for; it does all of the complex costing calculations and provides side-by-side evaluations with ratings for each plan.

For retirees, Checkbook’s Guide provides a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate with Medicare parts A and B. This allows users to determine which plans coordinate best with Medicare, the cost reduction of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates.

• Importantly, the Checkbook’s Guide reviews FEHB Medicare Advantage plan options which can be less expensive for many retirees.

Federal Retirement site visitors and newsletter subscribers can order the Consumers’ Checkbook Guide and save 20% by entering promo code FEDRETIRE at checkout. Online access is $13.95, the hard copy version is $16.95, or pay only $20.95 for both online and hard copy, less 20% with promo code.

You can also use OPM’s Plan Comparison Tool. It isn’t as comprehensive as the checkbook guide but it does compare up to three plans at a time.

Summary

There is much to consider each open season as things change in our lives and providers revise and update their coverage. It takes quality time to seek out what is best for you and yours.

Use the articles I published on this subject, review our online Open Season and recently updated Medicare information, and take advantage of the comparison tools that can help you nail down a plan that best suits your needs.

The comparison tools will help you narrow down your search. You will still need to review the plans of interest benefits section and drug formulary list to ensure the health provider you select covers what your family requires.

Here are six articles I’ve written about this year’s open season:

• 2023 FEHB Plan Selection Guide
• Blue Cross Blue Shield Basic to GEHA Standard Plan Comparison – 2023
• Medicare Advantage Plans and the FEHB (Scheduled)
• Medicare Signup, Premiums, and RMD Withdrawals – It’s Time
• 2023 FEHB Premiums Rise Abruptly
• Medicare Advantage Plans (Heads Up for Upcoming Open Season)

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Considerations
• Medicare Guide
• 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 Plan Comparison Tools
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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Posted on Thursday, 17th November 2022 by Dennis Damp

Please forward this article to others that may find this information useful.

This summary compares the 2023 Self + One Blue Cross Blue Shield (BCBS) Basic plan to the GEHA Standard plan for those who are 65 or older. BCBS has the most subscribers and GEHA has one of the lowest premiums for their standard plan.

Many annuitants change to a lower cost FEHB plan when they sign up for Medicare A and B because most plans waive the majority of the deductibles, copayments, and coinsurance when Medicare becomes your primary insurer. Medicare pays first and then your FEHB plan pays a portion if not all of the remaining bill for you.

Medicare Supplement Plan Caution

This time of the year, those 65 or older receive many offers from private insurers for Medicare Supplement Plans. When you sign up for a private insurer’s Medicare Supplement Plan your only option is to cancel your FEHB plan, you can’t suspend coverage. These plans are not the same as Medicare Advantage (MA) Plans.

The private sector Medicare Supplement Plan brokers don’t understand the FEHB program and may sell you a product that doesn’t provide the comprehensive coverage you now have. If you are contemplating this move, read the following article first:

• CAUTION – Don’t Lose Your FEHB Coverage

Costs

When enrolled in Medicare you can go to any provider that accepts Medicare, most do. Some plans, like BCBS Standard, don’t waive deductibles, copayments, and coinsurance fees for out of network providers; that can be expensive. Check Section 9 of your FEHB plan brochure to verify coverage.

Medicare Premiums

Medicare Part B Premiums add to your monthly healthcare costs which for 2023 will be $164.90 to as high as $560.50 due to Medicare’s Part B income adjusted premiums. The good news is that Medicare Part B premiums for 2023 actually decreased by 3% after a 15% increase the year before.

To qualify for the lowest Part B premium in 2023, individuals must have a Modified Adjusted Gross Income (MAGI) of $97,000 or less and married couples $194,000 or less.

MAGI is calculated by adding back certain deductions such as tax-free municipal bond and student loan interest, tuition, rental loss and IRA contributions to your IRS adjusted gross income.

FEHB Premiums

The 2023 BCBS Basic premium of $472.12 increased $47.17 while the GEHA Standard premium of $320.39 increased $28.47 year over year.

Combined FEHB and Medicare Premiums

Both Self-Plus-One members enrolled in Medicare A and B have to pay a Medicare premium of at least $164.90 per month for a combined total of $329.80 as noted in the following calculations.

Your monthly health insurance cost would be as follows, assuming both are enrolled in Medicare Parts A & B and the couple is earning $194,000 or less a year:

• BCBS Basic – $472.12 + $329.80 = $802.01 monthly, $9,624.12 / year)
• GEHA Standard – $320.39 + $329.80 = $650.19 monthly, $7,802.28/ year)

The above totals do not include any FEDVIP coverage for dental and vision care.

Medicare Part B Reimbursement

BCBS Basic members apply for and each receive a $800 Medicare Reimbursement for a Self Plus One enrollment, the adjusted annual costs would be reduced to $8,024.12/year in the above example. That’s $1600 a year for a Self-Plus-One enrollment when both have Medicare A & B.

To obtain the reimbursement you must provide proof that you paid Medicare premiums in 2023 by submitting a Medicare Reimbursement claim. Claims are submitted online by registering for a Medicare Reimbursement Account at fepblue.org/mra or through the EZ Receipts app. You can also mail or fax in a claim form. GEHA provides a $1000 per member reimbursement only for their high option plan.

Lower Cost Medicare Advantage Plans

Another low-cost option is to consider a FEHB sponsored Medicare Advantage (MA) plans issued through Aetna, Kaiser, and UnitedHealthcare. Some of these plans pay almost the entire Medicare Part B premium for you and waive all doctor and hospital expenses.

They often have the lowest estimated yearly cost for retirees. In order to join one of the new MA plans, retirees must enroll in the sponsoring FEHB plan, be signed up for both Medicare Parts A and B, and then sign up for that FEHB provider’s MA plan.

These plans are worth considering, however there may be coverage and provider availability issues that you should be aware of before signing up.

2023 Brochures

Review section 2 of the plan brochure for a complete list of changes.

• GEHA 2023 Plan Brochure GEHA 2023
  • Medical Plan Summary Book
  • Medicare 2023 Benefits (GEHA)
• BCBS 2023 Plan Brochure
  • BCBS 2023 Benefit Summary Book
  • Medicare and Blue (BCBS)

Prescription Drugs

If a drug you take isn’t on your plan’s formulary list, they will recommend covered alternatives. I ran into this with Asmanex, an asthma drug. They offered several substitutes; I’ve been using Qvar without incident.

The BCBS Basic Option uses a managed formulary for certain drug classes. They have a 5-Tier system, Tier-1 for generics up to specialty drugs at higher tier levels. Copays range from $15 at Tier-1 one up to $110 for Tier-5 drugs. If you purchase a drug in a class included in the managed formulary, that is not on the managed formulary, members must pay the full cost of that drug since that drug is not covered under your benefit.

• Use their “Prescription Drug Cost Tool” search function to determine if your drugs are covered, their availability, and how much they cost.

GEHA Standard option uses a formulary drug list that excludes coverage for certain medications unless they determine they are medically necessary. You pay a $10 copay for a 30-day generic supply, 50% up to $200 for a retail preferred brand name, and 50% up to $300 for a retail preferred brand name.

• Use their “Check Your Drug Cost Tool” search function to determine if your drugs are covered, if available at your local pharmacy, and how much they cost.

Both plans offer 30 to 90-day local pharmacy pickup or mail order delivery options.

Catastrophic (Out-of-Pocket) Expenses

Both plans limit your annual out-of-pocket expenses for covered services to $13,000 each contract year. BCBS Basic members would be responsible for the entire amount billed when using out-of-network services. GEHA members limit out-of-pocket expenses for out-of-network services to $17,000 per contract year.

Observation

Many federal annuitants are hesitant to sign up for Medicare Part B due to the additional cost and what appears to be duplicate coverage. I personally know a number of retirees that are paying large copayments and coinsurance fees because they didn’t sign up for Medicare Part B at age 65.

If you review your plan’s deductible, coinsurance and copayments, the costs could be prohibitive for those without Medicare Part A & B coverage.

For example, in the GEHA 2023 Standard Plan, those who don’t have Part B would pay a $20 copayment for physician visits; a $35 copayment to see a specialist for covered office visits and 15% of other covered professional services including X-ray and lab.  If the service is provided by a non-PPO, the member has to pay 35% of covered professional services. With Part B these fees are waived.

BCBS Basic Plan members without Part B would pay a $30 copayment for in-network primary care physician visits; $40 to see a specialist for covered office visits and up to $200 in diagnostic services. All costs would be the member’s responsibility if out-of-network providers are used. There are other copayments listed in the brochures for both plans.

• 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)

Plan Comparison Tools

OPM’s Plan Comparison Tool includes much of the information you would need to make an informed decision with some limitations. The Consumers’ Checkbook 2022 Guide to Health Plans does all of the complex costing calculations for you online and provides side-by-side evaluations with ratings for each plan.

For retirees, Checkbook’s Guide provides a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate with Medicare parts A and B. This allows users to determine which plans coordinate best with Medicare, the cost reduction of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates.

• Importantly, the Checkbook’s Guide reviews FEHB Medicare Advantage plan options which can be less expensive for many retirees.

The Consumers’ Checkbook Guide is available November 14^th in print and online formats. Federal Retirement site visitors and newsletter subscribers can order the Consumers’ Checkbook Guide and save 20% by entering promo code FEDRETIRE at checkout. Online access is $13.95, the hard copy version is $16.95, or pay only $20.95 for both online and hard copy, less 20% with promo code.

Summary

My wife and I enrolled in GEHA basic when we applied for Medicare A & B to reduce costs. Both plans waive all deductibles, copayments, and coinsurance for covered services for Medicare enrollees except for prescription drugs. GEHA also covers out-of-network care. Plus, we travel, and require coverage for out-of-network providers.

Prior to signing up for Medicare, we were enrolled in the BCBS Standard plan because they had no annual deductible and the coinsurance and copayments were lower. Even though the BCBS basic plan doesn’t cover out-of-network providers, 96% of hospitals, 95% of doctors and 55,000 retail pharmacies are in their network.

There is more to your selection than meets the eye. Compare benefits and services between carriers. For example, I use hearing aids; GEHA pays up to $2,500 every three years for replacements, BCBS provides the same reimbursement but limits replacement to every 5 years.

Review section five, the Benefits section in the plan brochures to ensure you will receive the services and benefits needed for you and your spouse. Take your time this open season to thoroughly review your options and costs.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Considerations
• Medicare Guide
• 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: Dental & Vision Plan Selection, FEHB, FEHB Open Season, Health Care Plan Comparisons
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, WELLNESS / HEALTH

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Posted on Friday, 11th November 2022 by Dennis Damp

Forward this article to others that can use this “Open Season” information.

Open season runs from November 14^th through December 12^th.  Our Federal Employee’s Health Benefit (FEHB) plan premiums increased an average of 7.2%! There are tools available to evaluate provider options, compare costs, select your 2023 plan, and submit changes to OPM. Use the following resources to make an informed decision for you and your family’s health care needs.

Obtain Copies of Plan Guides

Active Employees

• Request hard copies of desired plan brochures through your benefits coordinator. If you don’t know who that is talk with your supervisor.
• Download plan brochures from OPM’s website.
• Request copies direct from plan providers. I typically request and receive brochures direct from GEHA and Blue Cross Blue Shield weeks before they are available on the OPM site.

Annuitants (Retirees)

• Sign up for FEHB Open Season Online – This site is devoted to federal annuitants. Request plan brochures to be mailed to your home address or you can download brochures to your computer. You must register to use this site and annuitants can change enrollments online.
• Download plan brochures from OPM’s website.
• Request copies direct from plan providers.

Determine Plan Costs – 2023 FEHB Plan Rates (All rates are now posted online).

Compare Plans

Use OPM’s FEHB Plan Comparison Tool and Consumers’ Checkbook 2023 Guide to Health Plans to find the best FEHB plan for your needs. The Consumers’ Checkbook Guide is available in print and online formats.

Checkbook’s Guide helps active and retired federal employees find a FEHB plan that meets their needs at a cost they can afford. By answering a few questions, a personalized cost estimate is provided for each plan that includes the premium plus expected out-of-pocket costs.

For retirees, Checkbook’s Guide provides a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate with Medicare parts A and B. This allows users to see which plans coordinate best with Medicare, the cost reduction of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates.

• Importantly, the Checkbook Guide reviews FEHB Medicare Advantage plan options which can be less expensive for many retirees.  

Order Checkbook’s guide at Guidetohealthplans.org and save 20% by entering promo code FEDRETIRE at checkout. The Guide will be released online no later than the first day of Open Season. Print books will be mailed the week prior to the start of Open Season.

Use these two excellent tools to drill down and find the plan best suited for your personal situation. Review individual FEHB brochures, they provide the plan’s official statement of benefits.

Changing Enrollment

Annuitants (Retirees)

• Annuitants can change plans online at FEHB Open Season Online. The online service is easy to use and you can track your change submissions.
• Call Open Season Express 1-800-332-9798.
• Send regular mail (Postmarked no later than final date of Open Season) to:

Office of Personnel Management
Open Season Processing Center
P.O. Box 5000
Lawrence, KS 66046-0500

When sending requests by mail clearly state your Open Season request. If you are making an enrollment change, tell OPM the plan you want, type of coverage (Self Only, Self Plus One or Family), and the enrollment code. You must include your annuity claim number and social security number on your request. If you are choosing Self Plus One or Family coverage, OPM will also need your dependent and other insurance information.

Federal Employees

• You may be able to enroll online using Employee Express.
• Department of Defense employees can enroll using the DoD automated enrollment systems.
• Health and Human Services and Department of Veterans Affairs employees can enroll using MyPay.
• Department of Energy employees can enroll using the DOE automated systems.
• You can submit Standard Form 2809, Employee Health Benefits Election Form (PDF file) [849 KB], to your Human Resources Office. (Unless you are a U.S. Postal Service employee)
• Postal Service employees can enroll using the PostalEASE online and telephone enrollment system.

Federal Employees Dental and Vision Insurance Program (FEDVIP)

Dental and vision benefits are available to eligible Federal and Postal employees, retirees, and their eligible family members. Enrollment takes place during the annual Federal Benefits Open Season in November and December. New and newly eligible employees can enroll within the 60 days after they become eligible.

Register online at www.BENEFEDS.com to review and download plan brochures, use their plan comparison tool, and to initiate a change or cancel enrollment. If you aren’t a registered user sign up now. You will be able to review your Dental, Vision, Long Term Care and Flexible Spending accounts. Enrollees can initiate changes during open season, when there is a life event change, or to cancel coverage at any time.

For enrollment/premium questions regarding dental and vision insurance, contact BENEFEDS at 1(877) 888-3337.

Medicare Impact on FEHB Plans

Review the following articles that describe the impact Medicare has on your FEHB provider payments.

• A Marriage of Convenience – Medicare & FEHB
• Medicare and FEHB Options – What Will You Do When You Turn 65?
• What to Consider Before Enrolling in Medicare B
• Medicare Part B and FEHB Update
• How to Delay Part B Premiums

Summary

Last year OPM reported that a very small percentage, less than 3%, of FEHB enrollees changed plans last year. This year may be different. Even though the average FEHB premium increase was 7.2%, many plans increased prices 10% or more. With high Medicare Part B premiums and inflation increasing the cost of everything, it pays to seek out the best coverage for the lowest possible price.

If you are considering a FEHB Medicare Advantage Plan there may be coverage and provider availability issues to consider. You have to use preferred providers in their network and because the plan becomes your primary provider, not Medicare, certain preapprovals or authorizations may be required for treatment. Ensure your doctors are on their list and that approved medical facilities are available in your area.

• Medicare Advantage Plans (Heads Up for Upcoming Open Season)

Use the comparison tools mentioned in this article to evaluate your options and contact the plans of interest for clarifications if needed.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• TSP Considerations
• Medicare Guide
• 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, 2023 FEHB Selection Guide, Federal Employee's Health Benefits Plans, FEHB
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 4th November 2022 by Dennis Damp

Please forward this to other retirees and those planning their retirement.

Murielle, one of our newsletter subscribers, suggested we update our Federal Retiree’s Master Contact List. The last update was in 2019; we made a number of changes and additions to enhance its usefulness.

You will find key contacts for OPM, Medicare, Social Security, the TSP and most other areas of interest to federal annuitants and their families.

The first change was the type size, it was too small for aging eyes. I added a border and updated the information and numbers. Click on the following link to download your copy.

• Federal Retiree’s Master Contact List (PDF fill-in- form)

The Contact List is now formatted as a PDF fill-in-form; on page two add other important numbers for doctors, insurance companies, and others. I suggest downloading the PFD file to your computer desktop. When it is on your desktop, it is just a click away when needed and you can access the referenced websites just by clicking on the underlined text on the document.

The 2022 Midterms

November 8^th is fast approaching, and I encourage everyone to go out and vote. Our constitutional republic, as established by our founding fathers, flourishes when we vote. No matter what your party affiliation, this is the time to hold our representatives accountable to either maintain the status quo or effect needed changes.

My wife and I voted using Pennsylvania’s absentee ballot process this year. It was easy to apply online and secure from my perspective. You must furnish identification in the form of a driver’s license, and various other unique identifiers. We received notification by email when our application was received, and a confirmation of receipt of our voting mailer.

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Financial Planning
• TSP Guide
• TSP Considerations
• Medicare Guide
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances. Federal regulations, medical procedures, investment, 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 information contained herein should not be considered investment advice and may not be suitable for your situation. 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.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Tuesday, 1st November 2022 by Dennis Damp

This is a challenging time for investors with the country bordering on a recession with extreme market volatility. The Treasury still offers a safe haven for our cash with decent yields. Unfortunately, with the exception of the TSP G-Fund, private sector bonds funds were a disappointment this past year, falling anywhere from 5 to 20% or more.

I-Savings Bond Rates 

Despite the higher-than-expected inflation report in October, the Series I-Bond’s composite interest rate fell to 6.89% this November. The composite rate combines a 0.40% fixed rate of return with the 6.48% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The new rate will run from November 1 of this year through April 30, 2023.

This is down from the 9.62% interest earned through October 31^st, the highest I-Bond rate in history. The new rate is the third-highest yield since the introduction of I-Bonds in 1998. If you have older bonds with fixed rates, it will be higher.

My I-bonds issued in 1999 have a 3.3% fixed rate, these will earn 10.19% going forward. They earned over 12.92% from May 1 to October 31 of this year! Can’t beat that.

If you purchased an I-Bond by no later than October 28^th of this year, you’ll receive the 9.62% for six months through April of 2023, the new rate of 6.89% will run for six months after that.

It’s still a great rate and you would be hard pressed to find better in the market today. Locally, some credit unions are offering special CD rates for their members, mine has a special rate of 3.5% for 15 months for a limited time.

Treasury Bill Rates Still Rising

My article titled “Ditch your Bank’s Low Savings Rates” describes the advantages of Treasury bills compared to bank and credit union rates. I wrote the first article on this subject last March when my bank’s savings rate was .04%; it remains there to this day, almost 8 months later.

Today you can earn just over 4.5% on a 26-week T-Bill, the shorter-term Bills, as noted in the following chart, are earning close to 4%! These fixed income rates are attractive considering most banks and CDs are considerably less.

If you purchased $50,000 in the 26-week T-Bill issued on 10/27/2022 that is earning 4.552%, the Treasury withdrew $48,862 from your account. On the maturity date of 4/27/2023 they will deposit $50,000 back into your account for a $1,138 gain.

Had you had this amount deposited in a bank money market account paying .04%, you would have earned a meager $10!

Treasury Bill Investment Rates (Recent Auctions)

Another Option

Quality dividend paying stocks provide some relief during market downturns; reinvested dividends buy more shares at lower prices for potential long-term gains.

I started investing in high quality dividend paying stocks in the late 1970s through Dividend Reinvestment Plans (DRPs). At that time, you could send select companies a minimum of $25 monthly to purchase additional shares or a fraction of a share if the stock price exceeded $25.

Companies still offer these. However, most brokerage firms allow investors to elect dividend reinvestment for the stocks, ETFs, and mutual funds in their accounts. A great way to dollar cost average; over time, accounts can grow substantially.

Even the best stocks are impacted by recession; it takes personal fortitude to stay the course when our portfolios are subject to severe market volatility and downturns. That’s why retirees need to be cautious, my article titled “Is the Stock Market Keeping You Up at Night?” talks about this dilemma.

Summary

The U.S Treasury is having a difficult time keeping up with I-Bond and Treasury Bill and Note demand from retail investors like us. There website is going through a major update, and it is almost impossible to talk with a Treasury customer service rep, that’s how strong demand continues to be.

Treasury Direct does need a major upgrade. There site, this past 6 months, has been unreliable to say the least, and they don’t provide monthly and quarterly statements that all other financial institutions are required to make available to account holders. You have to print out the computer screens to have a hard copy record of your transactions and their customer support department is woefully understaffed.

The logon issues should resolve now that the new rate has been announced. Many were trying, at the last minute, to set up a new account to take advantage of the 9.62% rate. The last day you were able to do this was October 28^th.  Those who subscribe to my column had an early heads-up last December to set up an account and purchase bonds when the rate was 7.2%.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Financial Planning
• TSP Guide
• TSP Considerations
• Medicare Guide
• Budget Work Sheet
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances. Federal regulations, medical procedures, investment, 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 information contained herein should not be considered investment advice and may not be suitable for your situation. 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, I Bonds, Retirement Planning, T-Bills
Posted in ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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Posted on Friday, 21st October 2022 by Dennis Damp

Each year we publish a comprehensive leave record that federal employees can use to track their annual and sick leave, comp, and credit hours used. Our updated 2023 Excel Leave Chart is designed for active federal employees that are planning their retirement and need to establish realistic target retirement dates. This spreadsheet also helps federal employees maximize their annuity through prudent management of their leave balances.

I would like to thank two federal employees that beta tested this new version, Daniel and Shauna. Daniel provided significant formatting and content updates that added more functionality to the spreadsheet.

The 2023 leave year has 27 pay periods.

Please share our 2023 leave chart with everyone in your organization. It includes the Juneteenth national holiday. The chart tracks all leave balances, and you are able to annotate your work schedule on the chart as well. Simply download the spreadsheet to your desktop for easy access.

Download the 2023 Leave Chart

• 2023 Leave & Schedule Excel Chart (xls) 97-2003 version
• 2023 Leave & Schedule Excel Chart (xlsx) workbook version

If your spreadsheet opens in protected view click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button you may have an older version of Excel or your IT department may have to allow the form to pass without restrictions. We also included a newer slsx workbook version that you can use if you have problems with the earlier version.

A Microsoft Office consulting firm suggested using the newer slsx version. If that doesn’t correct the problem, talk with your IT staff. Some agencies increase their security settings to lock out certain documents based on set parameters. We include several hyperlinks in our spreadsheet to link users to additional supporting information such as our sick leave conversion chart and that may be the cause.

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitant
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• Medicare Guide
• Social Security Guide
• Budget Work Sheet

Tags: 2023 Leave Chart, Leave Tracker, Retirement Planning
Posted in ANNUITIES / ELIGIBILITY, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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