As a federal employee, you become eligible for Medicare Parts A and B on your 65th birthday. Since most federal workers have Medicare taxes deducted from their paychecks, Medicare Part A (inpatient hospital care) is premium free.
For this reason, the OPM advises active and retired federal employees to sign up for Part A when they become eligible to help cover any hospital-related costs your FEHB plan doesn’t cover. However, since Medicare Part B (physicians and outpatient services) requires paying a premium, it’s important to understand the cost and how it works with your FEHB plan.
Cost Of Medicare Part B Premium Increases In 2024
Starting in 2024, the Medicare Part B premium increases to $174.70 which is an increase of $9.80 from $164.90 in 2023. The annual deductible for Medicare Part B will be $240 in 2024 which is an increase of $14 from $226 in 2023. Also note, though Medicare Part A is premium-free, there is a deductible for hospitalization and related costs. In 2024, the Part A deductible will be $1,632, which is an increase of $32 from 2023.
Keep in mind that premiums for Medicare Part B may be adjusted higher based on your income. According to the Centers for Medicare & Medicaid Services (CMS), income-related monthly adjustments affect roughly 8% of high-income enrollees covered by Medicare Part B. To check if you’ll be subject to an adjustment, go to the CMS.gov website.
“During your working years, FEHB is considered your primary insurer and Medicare Parts A and B serve as your secondary insurer.”
The Coordination of FEHB & Medicare Coverage
The coordination of FEHB and Medicare coverage depends on whether you’re an active federal worker or a retiree. During your working years, FEHB is considered your primary insurer and Medicare Parts A and B serve as your secondary insurer.
In retirement, Medicare Parts A and B become your primary insurance and FEHB becomes your secondary insurance, much like a Medigap plan. This can help decrease out-of-pocket costs if your FEHB plan waives copayments or deductibles for services covered by Medicare.
Understanding What Medicare Part B Does Not Cover
Before you make any changes to your FEHB coverage, carefully consider services Medicare Part B does not cover:
- Typically covers only 80% of approved provider services.
- Does not cover routine vision and dental care, eyeglasses or hearing aids.
- Does not cover non-medical, long-term custodial care in a nursing home.
- Does Not cover outpatient prescription drugs.
Meet with an FRC® trained advisor who can help you analyze your needs and decide if you should enroll in Medicare Part B when you turn age 65.
Source: www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
