As discussed in a recent article, under federal law you’re required to make a decision about enrolling in Medicare when you turn 65. Since Medicare Part A is premium free, you may as well enroll when you become eligible. Though you pay a premium for Part B, it may make sense to enroll if your FEHB plan coordinates well with Medicare. Before you decide, here are five things you need to know.
1. The 4 Parts Of Medicare
- Traditional Medicare Part A covers inpatient care at a hospital, a skilled nursing facility, hospice care and some types of home care.
- Traditional Medicare Part Bcovers outpatient doctor visits, lab services, health screenings, physical therapy, and other types of routine outpatient care.
- Medicare Part C, also known Medicare Advantage (MA), offers an alternative to Traditional Medicare from a private insurer. Medicare Advantage plans offered through FEHB are designed exclusively for federal employees.
- Medicare Part D covers some prescription drugs. You don’t have to sign up for Part D when you have prescription drug coverage through your FEHB Plan or another plan.
2. Medicare Part A & Part B Deductibles
For 2024, the in-patient Part A deductible is $1,632 and covers Medicare approved costs for the first 60 days you are hospitalized. If you spend more than 60 days in the hospital, you must pay additional co-insurance costs for days 61 through 90. The yearly deductible for Medicare Part B is $240 for 2024.
“If you don’t sign up during the Initial Enrollment Period, you may be subject to late penalties that will be added to your monthly premiums when you do enroll.”
3. Initial Enrollment Period & Penalties For Delayed Enrollment
When you become eligible for Medicare at age 65, you need to sign up within the seven-month Initial Enrollment Period that:
- Begins 3 months before the month you turn 65
- Includes the month you turn 65
- Ends 3 months after the month you turn 65
If you don’t sign up during the Initial Enrollment Period, you may be subject to late penalties that will be added to your monthly premiums when you do enroll.
4. You Can Make Changes To Your Medicare Plan After You Enroll
You can switch from Traditional Medicare to Medicare Advantage, or vice versa, during the yearly Open Enrollment period that runs from October 15th through December 7th.
5. Medicare Doesn’t Cover Long-Term Care In A Facility
Long-term-care (LTC) is non-medical, custodial care in a facility that’s not covered by Medicare or FEHB plans. Without LTC insurance, the out-of-pocket cost can run as high as $10,000 per month.
Download the FEHB and Medicare Fact Sheet to learn more.
