Page 66 - The Informed Fed--Hearn Wealth Management
P. 66

A common misconception is that your spouse has to be enrolled for
                        five  years prior to your retirement. This  is not true. As long as  your

                        spouse has other coverage, they can enroll in your plan either after a life-
                        changing event or during any open season. A pitfall to avoid here is that
                        if your spouse continues to work after you retire and keeps their own

                                                                                                   , and
                        then the federal retiree passes away before the spouse has a chance to

                        retire. The spouse loses the access to those health benefits because they


                        if you take the survivor benefit to enable your spouse to continue health

                        benefits if you pass away first, and if the spouse is not covered by FEHB
                        on the day you die, they are unable to get FEHB coverage. Your overall
                        health care expenses include more than just your share of the premium.

                        You  also  have  to  take  into  consideration  what  your  maximum
                        deductibles could be, as well as any co-pays for doctors, hospitalization
                        and prescriptions. In the case of the High-Deductible Health Plan, you

                        also get a rebate from the insurance company, so you get to deduct that
                        amount from your overall expenses.

                            Take a Look at the following illustration comparing out-of-pocket
                        expenses for an employee insuring self only:


                                 Self Only                    HDHP                      Standard
                          Limit state in p

                          summary of benefits  $5,000                             $4,500
                          Deductible                 Included                     $350
                          Hospital,  physician,  Included                         $2,560

                          drug copays
                          Specialty drug             Included                     $4,000

                          Premium minus              $88                          $1,992
                          savings account
                          Actual limit to you        $5,088                       $13,402






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