I messaged you.
ā Introducing the FEP Medicare Prescription Drug Program
The FEP Medicare Prescription Drug Program (MPDP) is a prescription drug benefit exclusively for Blue Cross and Blue Shield Federal Employee Program (FEP) members with Medicare. Itās part of your Blue Cross and Blue Shield Service Benefit Plan coverageāthereās no separate premium for your prescription drug coverage.ā
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He has Med A and B and kept federal BC/bs as secondary and for prescriptions. Iām not old enough for Medicare so still just on Fed BC/BS
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Iāve read the stuff theyāve put out about it but wonder if there are some times when not better than keeping what we had. Read that people affected with IRMAA might not be better off. This is our first year in retirement so still working on what that means but we could end up hit with higher premiums if we need to take more out of investments than intended in a year. H has some health issues and Iām having to take more money out to pay for some home care and donāt know how long it will continue
IRMAA is a year-by-year surcharge. So once you exceed an IRMAA level in any given year, might as well keep converting investments up to the next IRMAA level or top of the marginal tax bracket. For example letās say you need $100k for health-related care per year, and taking $100k puts you over teh IRMAA cap. Then look to take out even more, say $150, so you can take out less the next year and get under teh IRMAA cap in that next year.
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Sorry for the extra health issues / expenses - Itās possible that the home care (if more than 7.5% of income) will qualify for tax deduction
https://www.elderlifefinancial.com/resources/caregiver-expenses-can-be-tax-deductible/#:~:text=The%20IRS%20allows%20caregivers%20to,adult%20dependents%20under%20certain%20circumstances%3A&text=The%20older%20adult%20was%20the,time%20the%20expense%20was%20paid.
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Did you do much analysis before deciding to keep BCBS Fed and get Medicare?
If so, Iād be interested in knowing what convinced you to make that choice.
(PM would be great).
Have you looked at webinars by NARFE?
I am not a fed, but friends used to look at their materials.
Also, Consumer Checkbook, but there may be a fee. May be at a public library.
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We didnāt. Missed the letter in all hospital confusion and therefore did not opt out by deadline. Seems like there is a chance to change this before Jany. That is what we are exploring
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I should probably look this up before posting, but I thought that the $100K health care expenses would reduce taxable income. Would IRMAA still apply if the amount of the conversion = the amount of the health care expenses?
Editing to say, I completely agree about the math behind your approach of going all in once you trigger IRMAA. Just clarifying the deductibility of health care expenses.
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I faced this BC/BS issue as a retired FEP. I chose to opt out after looking at it with a friend who really did the research and I confirmed. We pay a lot for part B as a means test and we would have to pay also hundreds a months as the means test for part D extra that we do not pay now. Also my friend said they told her it does not cover overseas because it becomes medicare coverage part D. I could see where this might be preferable if the Rx meds spending is large.
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So far (as fed retirees) we think it doesnāt seem like itās worth the cost of having both Medicare and BCBS (or whatever other provider) because of the extra cost.
We are considering going to the lowest BCBS plan, where we would get a rebate from BCBS, but we are not sure we want Medicare to be the primary insurer. We have 2 years to decide, so may change our minds before then.
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Just like we are all living with inflation and some with very fixed income, the insurance industry āsqueezeā with making promises and then being somewhat āflim-flamā coverageā¦
It really helps to talk to health care people to really find out the ā411ā on what is good insurance care in your area. Also based on what is needed and what is best way to have those health care needs covered.
Glad we discussed with dentist - the AARP Delta Dental plan looked on paper like it covered what our Employer Delta Dental had, but we were informed it did not. We had Delta Dental via COBRA for 18 months after DH retired, and then we actually purchased a reasonable coverage plan with our dentist. Best cost effective and efficient way for āinsuranceā - their plan covers the routine care and then discounts on extra things (crowns, fillings).
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Has anybody else switched to self-coverage for dental? My old plan seemed pricey, covered less than half of the cost and my dentistā¦ and it had $2000 annual cap. For past 3 years since retirement Iāve been skipping dental (but keeping Vision - cheap, decent benefits). Last year I decided to start using HSA debit card to pay. Dentist give discount for ācashā, but only 5%. So far only checkups/x-rays - Iāll likely cringe if I need another crown someday.
Nope. We keep dental, and now that we are in our 60s Iām glad we have it. Iāve had 3 crowns in the last couple of years, and husband has also had stuff come up.
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We self-insure for dental. The caps are just so low on what policies I could find cover. Our dentist does give a 10% discount for cash and I use our HSA account. We have enough saved to cover a few crowns, but yeah the sticker shock!
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IMO, the only reason to have a dental policy is to get the negotiated rates for services. The 5% discounted rates are still way higher than the negotiated ones (at least based on what our dentist charges).
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IDK if your dentist or another dentist in your area offers a āDental Savings Planā - our DDsā have a lot of dentists in their family - so evidently they have found a way to offer an in-house kind of plan. No deductibles, no maximums, no limits, no waiting period. Each member will pay an annual enrollment fee (it is $325 per person per year, and that has been the cost to us for 2022, 2023, 2024). This fee covers all preventitive hygiene services and offers a 15% savings on other treatments and cosmetic procedures. They have a Periodontal Program (individualized plan will be created) for $450 - $550 per year.
We receive two preventative cleanings and exam per year; 2 Flouride treatments per year; 2 oral cancer screenings per year. Unlimited X-rays (as needed) including one Full Mouth X-ray as needed. One emergency exam per year (if needed). 15% off an other treatment including cosmetic procedures (they say these costs w/o the play would cost $629.
What we receive is āpeace of mindā with some control of the routine things and a discount on things like crowns and other necessary things that could come up.
We have been with the same dental practice since 1983 - the prior dentist sold the practice to this Husband and Wife Dentists, and we have had great care.
Maybe you can find a great dentist in your area to offer this kind of a program.
Those that have dental care within their retirement plan/company or government employer, terrific. And I am not talking about Managed Care in retirement ā I am not familiar with that at all, but am suspect of it.
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We just pay out-of-pocket for dental which has only been cleanings so far since weāve retired. We figure that what weāve saved on insurance premiums in the last six years will cover a crown or two if ever needed.
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We have been on the market dental plans for the past few years. The premium are basically the same as we paid when we got the plan through my husbandās employer. (Delta Dental)