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Medicare | Medicare: Basic Information and Considerations f . . .
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Medicare: Basic Information and Considerations for Federal Employees
Medicare is the health insurance program for people age 65 or older,
certain people with disabilities who are under 65, and people of any age who
have permanent kidney failure. It provides basic protection against the
cost of health care, but it doesn't cover all medical or the cost of most
long-term care.
Medicare Part A And Part B Medicare consists of
two parts. Part A (hospital
insurance) includes:
- hospitalization
- post hospital skilled nursing facility care
- home health care
- hospice care
- blood
Part A does not cover 100% of these expenses. A graduated payment by
number of days the care is required is applied. You would be responsible for the
remainder. The Federal Employees Health Benefits (FEHB) Plan will
cover some of the expenses, but you should ensure that you understand what is
and isn't paid by Medicare and/or FEHB, by checking with local Medicare
representatives and consulting your FEHB plan brochure or carrier
representative.
Part A has been paid for through Federal Insurance Contributions Act (FICA)
taxes on wages while you were/are employed; therefore, there is no
premium. You should sign up as soon as you are eligible if you are not
already receiving Social Security benefits. If you are already receiving Social
Security benefits before age 65, you are automatically enrolled in Medicare.
Part B (medical insurance) provides the following
coverage:
- doctor's services
- ambulance services
- outpatient hospital treatment
- X-rays
You are automatically eligible to enroll in Part B when you are eligible for
Part A. However, Part B has a monthly premium which changes each
January. If you fail to enroll in Part B at your first opportunity, there
is a 10% penalty applied for each year following the year in which you become
eligible. However, if you are a federal employee covered by FEHB and
continue to work past Medicare eligibility you will not be affected by the 10%
increase.
How To Enroll You have from 3 months before
your 65th birthday and through the end of the 3rd month following the month in
which you reach 65 to sign up for Medicare Part B. If you do not enroll
during this 7-month period, there is a general enrollment period from January 1
through March 31 each year. Coverage begins the following July.
Don't forget about the penalty for the delay.
Helpful links:
FEHB plan and premium information: https://www.opm.gov/insure/08/spmt/plansearch.aspx
Medicare plan and premium information: http://www.medicare.gov.
Source: USCG
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