TRICARE or FEHB – Always Keep Your Options Open

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Relevant
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TRICARE or FEHB – Always Keep Your Options Open

Post by Relevant »

Most federal employees opt out of FEHB if they are eligible for TRICARE for good reason. The extra cost of FEHB only provides a negligible increase in benefits for most employees.

But what if TRICARE benefits were to deteriorate in the future and FEHB coverage emerged as the best choice for you?

If you are not enrolled in FEHB at the time you retire from civil service you lose the FEHB option forever.

To preserve your option, enroll in FEHB during the open season just before you retire. After you retire you can suspend FEHB. This move will retain your right to return to FEHB at any time in the future.

This rule applies to military retirees as well as their spouses.

http://www.opm.gov/insure/health/faq/tricare.asp#7.16

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FlyingJed
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by FlyingJed »

I've consistently received advice at agency (FAA) pre-retirement seminars saying that you must be enrolled in FEHB _5 YEARS_ before you retire to retain insurance rights during retirement. As far as I know you can't just hop in at the last minute before retiring and expect to have an option for FEHB after retirement. One thing though.... At least 5 years before retirement, you should pick the cheapest FEHB coverage available and only insure yourself (not your family too). After retirement, you have the option of choosing any level of FEHB coverage you want even though you only insured yourself prior to retirement. Although I don't forsee needing FEHB coverage when I retire next year - my wife retired with excellent coverage for both of us - I'm still hedging my bet by staying enrolled in FEHB until I retire.

TSPKip
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by TSPKip »

If a wife was not covered by her own coverage in FEHB [some other plan at her non federal worksite] and she was not yet covered by you and you did not have her under your Federal retirement annuity [50-100%], is it not true that your wife could not be covered after the time of your retirement and or death?

It is my understanding that: not only do you have to be covered by FEHB for 5 continuous years prior to your retirement, she must be on the policy prior to your retirement and under your pension with spouse. Should you die thereafter, she would lose her coverage if she were not under your pension annuity, as there is no account with her name on it in order for her to send her monthly part of the insurance costs.
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jdeacon
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by jdeacon »

Normally the rule is 5 years. However, retired military have Tricare. It is my understanding that Relevant is correct. So long as one is Tricare eligible, the 5 years is waived if you enroll in FEHB during the open season just before you retire.

BigMike
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by BigMike »

jdeacon wrote:Normally the rule is 5 years. However, retired military have Tricare. It is my understanding that Relevant is correct. So long as one is Tricare eligible, the 5 years is waived if you enroll in FEHB during the open season just before you retire.


Jdeacon,

You are correct. If you have been covered by Tricare for the five years before retirement that counts the same as having been in FEHB for those five years. You do not lose your option of picking FEHB back up at some point after retirement as long as you are continuously in "either" FEHB or Tricare.

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Relevant
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by Relevant »

BigMike,

Be careful. You and Jdeacon got the 5 year exception right for TRICARE but "Employees can count their coverage under TRICARE toward meeting this requirement. However, the employee must be enrolled in an FEHB health plan on the date of retirement to continue coverage."

This is a direct quote from the OPM Web Site. I also called AF Personnel and they confirmed verbally and in an e-mail. This is the trap that will catch most off guard.

crondanet5
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Re: TRICARE or FEHB – Always Keep Your Options Open

Post by crondanet5 »

Doesn't the retiree pay the full monthly cost of the FEHB? Better subtract that amount from your anticipated pension.

GrowTSP
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Joined: Wed Jun 22, 2011 4:21 am

Re: TRICARE or FEHB – Always Keep Your Options Open

Post by GrowTSP »

The retiree only pays their portion of the FEHB, just as if they were still working for the government. I am retired and it is what I have. Since I am also a retired Guard member, I will also be eligable for Tricare when I'm sixty.

BigMike
Posts: 220
Joined: Wed Sep 29, 2010 12:45 pm

Re: TRICARE or FEHB – Always Keep Your Options Open

Post by BigMike »

Relevant wrote:BigMike,

Be careful. You and Jdeacon got the 5 year exception right for TRICARE but "Employees can count their coverage under TRICARE toward meeting this requirement. However, the employee must be enrolled in an FEHB health plan on the date of retirement to continue coverage."

This is a direct quote from the OPM Web Site. I also called AF Personnel and they confirmed verbally and in an e-mail. This is the trap that will catch most off guard.


Thanks Relavent. I did not know about that little twist.

crondanet5
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Joined: Tue Aug 19, 2008 8:51 pm

Re: TRICARE or FEHB – Always Keep Your Options Open

Post by crondanet5 »

GrowTSP, when you do the paperwork for your guard pension be sure to elect 100% SBP. When I retired the guys in Finance shared with me the fact that your surviving spouse would receive back every penny you put into SBP within the first year, and everything they receive thereafter is gravy. I tried to disprove it. No matter what length of time I used it still came out that way. Few realize how difficult life becomes for the surviving spouse when the money supply gets cut off. It can always be used to grow your multigeneration financial security plan if they don't need to use it. You should also have a plan in place regarding what should be done with the balance of your TSP/other 401k/IRA accounts. Congratulations on completing your guard retirement eligibility. Many try, few reach it. But remember that if you do not reach age 60 there is no SBP for your spouse. Drive safe, drink responsibly, watch your weight. Good luck, hope you live to a hundred.

GrowTSP
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Joined: Wed Jun 22, 2011 4:21 am

Re: TRICARE or FEHB – Always Keep Your Options Open

Post by GrowTSP »

Thanks Crondanet5 I hope I do too. I did elect the full SBP (survivor benefit plan) for my wife, it is a small price to pay for financial security. Also upon the annuitants death the TSP will transfer the balance of your account to your surviving spouse and open and account in his or her name. They will have access to the money and interfund transfers just as we do. It also doesn’t have to be your spouse, it can be anyone you put down on the Survivor Benefit Form and you list the percentages they get.

crondanet5
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Joined: Tue Aug 19, 2008 8:51 pm

Re: TRICARE or FEHB – Always Keep Your Options Open

Post by crondanet5 »

It's not that simple. Read further in the pamphlet.

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