Anonymous
Post 04/03/2024 19:12     Subject: How to value fed health insurance benefit?
There’s missing advice here, in that no one has mentioned MRA+10 postponed retirement as an option.

When you take it, you CAN pick up FEHB again when the annuity starts. For life. Depending on how you value health benefits, it may be the right choice.
Anonymous
Post 04/03/2024 18:14     Subject: How to value fed health insurance benefit?
My only opportunity to continue FEHB into retirement (with partial Federal subsidy) is when I retire.

It is not something I can choose/activate later.

Not sure if you and I have the same rules, but make sure to check this.
Anonymous
Post 04/03/2024 16:26     Subject: How to value fed health insurance benefit?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Ask an HR specialist about this. I am not 100% in the details, but I know the health benefits “retirement” standard is different… you need x years in (less than the number required for pension) and you can start collecting earlier than Medicare (62.5 maybe?). Anyway, the $30k/year is about right (maybe a little high depending on your insurance), but I think you can claim your health benefits earlier than you think.


In my experience, you need to be eligible for an immediately annuity (pension) to collect health benefits, but you do not need to maximize your pension. Depending on the year you were born and years in service, that age is around 55, with a reduction in our pension for every year you're younger than 62. Also depending on your agency and job, that age may be lower than 55 (based on years of service) because some separations can be "deemed" to be involuntary.

ACA insurance plans get much more expensive with age, I'd say $30k per person may be a little high, but a good cautious number for the future.





Just to clarify -- you need to start taking your pension (even if reduced) and health benefits immediately upon separation. You can't delay taking your pension and get health benefits later. Breaks in service are ok -- you can quit for another job and then go back to work for the federal government later for a short period, then retire directly and get health benefits. Just make sure you're always enrolled in FEHB while you're employed by the government.

Definitely talk to HR about this. It's complicated, and there are quite a few technicalities that can mess you up and/or help you (e.g., make sure you get credit for unused leave). Just about everyone I know has paperwork issues with retirement and the earlier you start looking at it the better, and the HR people are usually grateful when people start early and aren't panicking when they hit the inevitable bureaucratic bumps in the road. I had worked for multiple agencies and some of my time in service wasn't even showing up in the system. It took months to get it all straightened out.


Worth noting that you get severely penalized for taking your pension early. 5% per year for each year under age 62 so 25% total at 57 unless MRA+30 or 60 with 20 years.

I think, but please double check, that you can postpone your FERS annuity and then reinstate your FEHB. So for OP that would happen at age 60 for no penalty.
Anonymous
Post 04/03/2024 16:15     Subject: How to value fed health insurance benefit?
Not sure that finding a lower stress GS 13 or 14 job is feasible. I mostly just want to retire before I’m 57!

In case anyone else is considering these issues, I found a Reddit thread discussing the value of keeping FEHB even after you are Medicare-eligible: https://www.reddit.com/r/fednews/comments/15rs7yn/how_valuable_if_fehb_in_retirement/
Anonymous
Post 04/03/2024 14:37     Subject: How to value fed health insurance benefit?
Is being a GS 15 too much stress? Can you find a 14 or 13 to be until you are retirement eligible?
Anonymous
Post 04/03/2024 14:21     Subject: Re:How to value fed health insurance benefit?
Anonymous wrote:$30k a year


$30K per person or couple
Anonymous
Post 04/03/2024 11:56     Subject: How to value fed health insurance benefit?
^sorry meant Medicare. I get them mixed up.
Anonymous
Post 04/03/2024 11:55     Subject: How to value fed health insurance benefit?
OP, keep in mind if you stay to collect your FEHB in retirement then your spouse and children (until age 26) can stay on it. It truly is worth a lot of peace of mind. I’m about 15 years in and will hit 30 at age 57 so planning to retire then unless early outs and then even sooner.

My dad was forced retired early b/c a company buy out and had to get hired in some crap job for a few years just for the health benefits b/c my mom has chronic issues. That was before Medicaid age so maybe this isn’t as big of an issue if you’re older. But as you age insurance can be even more important.

My youngest will not turn 26 until I’m 63 so I’d love to be able to keep all my kids on as long as I can in case they want to go to grad school or something and won’t have their own coverage.
Anonymous
Post 04/03/2024 11:50     Subject: Re:How to value fed health insurance benefit?
This should be in your FERS personal benefits statement which has just been made available for 2024.
Anonymous
Post 04/03/2024 11:41     Subject: How to value fed health insurance benefit?
Is it a significant advantage to have FEHB coverage in retirement in addition to Medicare? Would that mean you would need to pay for the additional Medicare programs?
Anonymous
Post 04/02/2024 22:55     Subject: How to value fed health insurance benefit?
Anonymous wrote:
Anonymous wrote:Ask an HR specialist about this. I am not 100% in the details, but I know the health benefits “retirement” standard is different… you need x years in (less than the number required for pension) and you can start collecting earlier than Medicare (62.5 maybe?). Anyway, the $30k/year is about right (maybe a little high depending on your insurance), but I think you can claim your health benefits earlier than you think.


In my experience, you need to be eligible for an immediately annuity (pension) to collect health benefits, but you do not need to maximize your pension. Depending on the year you were born and years in service, that age is around 55, with a reduction in our pension for every year you're younger than 62. Also depending on your agency and job, that age may be lower than 55 (based on years of service) because some separations can be "deemed" to be involuntary.

ACA insurance plans get much more expensive with age, I'd say $30k per person may be a little high, but a good cautious number for the future.





Just to clarify -- you need to start taking your pension (even if reduced) and health benefits immediately upon separation. You can't delay taking your pension and get health benefits later. Breaks in service are ok -- you can quit for another job and then go back to work for the federal government later for a short period, then retire directly and get health benefits. Just make sure you're always enrolled in FEHB while you're employed by the government.

Definitely talk to HR about this. It's complicated, and there are quite a few technicalities that can mess you up and/or help you (e.g., make sure you get credit for unused leave). Just about everyone I know has paperwork issues with retirement and the earlier you start looking at it the better, and the HR people are usually grateful when people start early and aren't panicking when they hit the inevitable bureaucratic bumps in the road. I had worked for multiple agencies and some of my time in service wasn't even showing up in the system. It took months to get it all straightened out.
Anonymous
Post 04/02/2024 22:45     Subject: How to value fed health insurance benefit?
Anonymous wrote:Ask an HR specialist about this. I am not 100% in the details, but I know the health benefits “retirement” standard is different… you need x years in (less than the number required for pension) and you can start collecting earlier than Medicare (62.5 maybe?). Anyway, the $30k/year is about right (maybe a little high depending on your insurance), but I think you can claim your health benefits earlier than you think.


In my experience, you need to be eligible for an immediately annuity (pension) to collect health benefits, but you do not need to maximize your pension. Depending on the year you were born and years in service, that age is around 55, with a reduction in our pension for every year you're younger than 62. Also depending on your agency and job, that age may be lower than 55 (based on years of service) because some separations can be "deemed" to be involuntary.

ACA insurance plans get much more expensive with age, I'd say $30k per person may be a little high, but a good cautious number for the future.



Anonymous
Post 04/02/2024 19:46     Subject: How to value fed health insurance benefit?
Ask an HR specialist about this. I am not 100% in the details, but I know the health benefits “retirement” standard is different… you need x years in (less than the number required for pension) and you can start collecting earlier than Medicare (62.5 maybe?). Anyway, the $30k/year is about right (maybe a little high depending on your insurance), but I think you can claim your health benefits earlier than you think.
Anonymous
Post 04/02/2024 19:42     Subject: Re:How to value fed health insurance benefit?
$30k a year
Anonymous
Post 04/02/2024 19:40     Subject: How to value fed health insurance benefit?
I’m a GS-15 with 20 years of federal service, but I’m 10 years away from my minimum retirement age under FERS. We have pretty robust TSPs, plus a bunch of other money saved. Obviously it would be better to stay until my MRA, because then I could retire with health benefits. Any thoughts on how to figure out how much I’d be giving up if I were to retire in 5-7 years? Would wait until after 60 to start receiving my pension. Am I just looking to estimate the cost of health insurance from the time I retire until I can get Medicare at 65? Let me know if there’s other stuff I should be considering.