How to handle federal health benefits and assisted living budget?

[Anonymous]

My 82 year old mother has access to federal health benefits as a widow. My father had many specialists, so he always had both Medicare Part B and Federal retiree BCBS and never paid anything out of pocket. My mother is about to move into assisted living -- she has enough resources to last somewhere between 8-12 years. We'll help her if necessary, but want to be as careful as we can with spending. Her physical health is quite good, though her mental health is an issue. Does it make sense to keep both Medicare Part B and federal health insurance? The federal benefits are over $300 a month, expensive for someone with her income.

Not a fed, so this whole world is a total mystery to me, thanks!

[Anonymous]

If you poke around on the internet there will be lots of discussions about this. Sounds like your mom doesn’t pay IRMAA surcharges on her medicare so that helps. I would probably keep BCBS for this year and next November look if there is a cheaper FEHBP plan— some of them will pay for medicare part B IIRC.

[Anonymous]

Once you leave the federal insurance program, you can’t go back. I would keep it; this is same coverage my husband and I have. Medicare does not cover all expenses, does not cover all inpatient or outpatient care; BCBS covers those in many cases along with no copayments. I’d keep it as true insurance, as it protects you from getting hit with high medical bills especially if needs physician or care that does not take Medicare.

[Anonymous]

I would keep the FEHBP and drop Medicare Part B. They are duplicative. Dropping Part B will save her $165/month (or more if she is higher income).

[Anonymous]

Some good info here. You might find it worthwhile to subscribe to Checkbook FEHB guide.

https://help.checkbook.org/article/69-why-you-should-enroll-in-medicare-part-b#:~:text=About%2070%25%20of%20federal%20retirees,elimination%20of%20FEHB%20retiree%20benefits.

[Anonymous]

As a federal retiree, she has many plan options. A majority of them, probably including BCBS, will pay the Medicare premium. As other posters noted, this will mean she pays pretty much nothing for her care beyond the premium.

Under Medicare alone, she would pay the Medicare premium, and then after that, pay deductibles, copays, and for uncovered items.

With both, she only pays the federal health plan premium (after they pay the Medicare premium).

She has the most expensive federal health plan. She could switch that. Her husband's death is probably a qualifying event, or you can do that during open season for FEHB.

[Anonymous]

Thanks so much to all for the guidance, will look into a cheaper Federal plan for now.