Page 70 - The Informed Fed--Hearn Wealth Management

Medicare Part A

Medicare Part A is the hospitalization coverage portion of Medicare
and is free to anyone who has paid into the Medicare system for at least
40 quarters (or ten years). Because all federal employees were required to

begin paying into Medicare in March of 1986, even if
you should be covered here. Because it is free to you--

g--
age 65. Your FEHB insurer wants you to sign up as well, because it helps
take some of the burden

when you turn 65. You have 7 months--
65th birthday, the month of your birthday, and three months after your
65th birthday-- ant

to sign up for Medicare Part A because you do not pay anything for this
coverage. If you are still working at age 65, your FEHB will remain the
primary payer until you retire, when Medicare will take over as the

primary payer.

Medicare Part B
Medicare Part B has a cost of $135.50 (for 2019) per month and if
you opt for this coverage at age 65 (or when you retire, whichever is

later), it becomes your primary insurer and your FEHB acts as a Medicare
Supplement. If your modified adjusted gross annual income is greater

than $85,000, your premium increases on a sliding scale. This is known
as means testing. If you have the means to pay more,
more for Medicare Part B. Many federal employees question whether
they need Medicare Part B. Keep in mi

soon,
get there.

The general pros and cons of choosing Medicare Part B are as
fol
a grea

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