Proper Way for Federal Employees to Enroll in Medicare

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Hello Toni:

            Turning 65 and not planning to retire until I’m 70. I am a Federal employee working full-time as an agent for the IRS.

I am receiving conflicting information that is totally confusing me. Friends who read your Toni Says Medicare articles are advising me to enroll in Medicare Parts A and B when I retire to keep from receiving the “famous” Part B penalty. Co-workers that work with the government say that I am protected because I am a government employee and do not have to enroll in Medicare.  

Please explain the rules regarding enrolling in Medicare when you are a Federal employee. Look forward to what you have to say. Thanks, Sheldon

Hi Sheldon:

            Your friends are correct!!  You should enroll in Medicare Parts A and B when you retire.

            The rules regarding when and how to enrolling in Medicare for America are the same Medicare enrollment rules for Federal employees. This change for Federal employees having to enroll in both Medicare Parts A and B happened a few years ago.

            Federal Employees Health Benefits (FEHB) must pay first when an active employee has a health need. Once a Federal employee has retired which is now known as an annuitant and is enrolled in Medicare Parts A and B and in a FEHB plan, then Medicare is primary coverage and the FEHB is secondary coverage.

            Employees with FEHB coverage and who continue working for federal service past age 65 do not have to enroll in Medicare Part B when they become age 65. As long as they continue to work in federal service, their FEHB program coverage will be primary for medical services. These individuals will have a Special Enrollment Period (SEP) when they retire or when their spouse retires to enroll in Part B without paying a penalty.

            Let’s discuss Medicare’s three enrollment periods which Federal employees can experience that have FEHB benefits. (These enrollment periods are also available to American’s that do not have the excellent benefits that Federal employees have.)

Medicare enrollment periods are listed below:

• Medicare’s Initial Enrollment Period: If a federal employee retires before age 65 and keeps his/her FEHB health insurance for retirement, then the retired employee can enroll in Medicare during their ‘Initial Enrollment Period” (IEP). Medicare’s IEP is a 7-month window which begins 3 months before turning 65, the month one turns 65and 3 months after one turn 65.
• Special Enrollment Period: a Federal employee or spouse past 65 when delaying Medicare Part B due to continue service with FEHB. This is an 8-month window of signing up for Part B without receiving a Part B penalty. The retiree will need to file CMS-L564 (Request for Employment Information) completed by the personnel office and CMS-40B (Application for Part B) by taking both forms taken to the retiree’s local Social Security office to enroll in Medicare.
• General Enrollment Period from January 1-March 31: When a retiree or spouse has not enrolled in Part B and now needs to enroll in Medicare Part B. The retiree WILL receive a Medicare Part B penalty for not enrolling in Part B at the proper time.

            It will always be to the retirees advantage to keep the FEHB plan due to the excellent benefits it offers. When concerned regarding enrolling in a Medicare Part D plan, the retiree needs to realize that the FEHB plan is considered “creditable” Medicare Part D coverage. If the retiree wants to enroll at a later date can do so, without having a Part D penalty.

Call the Toni Says® Medicare hotline at 832/519-8664 or email [email protected] with Medicare help. Toni’s Medicare Survival Guide Advanced edition is available at www.tonisays.com. Toni’s Medicare Moments articles have just been released at familytalktoday.com/medicare-moments

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