Chat Transcript: November 7, 2019

Chat Transcript

This is a transcript of an online chat and has not been edited for spelling or grammar. If you have a question that is not answered here or need more clarification, please contact NARFE’s Federal Benefits experts at fedbenefits@narfe.org.

Question: Is there a free link to checkbook magazines guide to Health Plans for federal employees 2020?

Answer: No, the checkbook has a small fee associated with me. NARFE members receive a 20% discount though, with the code 20NARFE -Jessica

Question: As a current Federal retire, can I enroll in a HDHP with an HSA, and contribute (in addition to the pass through) to the HSA up to the annual maximum dollar limit, given that I currently have no earned income, but only income from my retirement annuity and the FERS annuity supplement?

Answer: Yes, you don’t need earned income to contribute to an HSA. You will still be able to reduce your taxable income from your retirement by making these contributions (employees pay FICA and Medicare taxes that can also be reduced) -Tammy

Question: Can two feds that are married have separate HDHP Savings Accounts or do they get combined?

Answer: If you are enrolled in two self only plans, then you will each have your own account established. If you are in family or +1 enrollment, then there will be one HSA but both spouses may use the money to pay their expenses. -Tammy

Question: You seem to be making a distinction between a CDHP and an HDHP. What is it?

Answer: A CDHP has a health fund, but you may not make additional contributions to it and you may contribute to an FSA if you are an employee. An HDHP offers an HSA that allows tax-free contributions in addition to the premium pass-through (rebate of part of your premium). If you contribute to an HSA, you may only contribute to a Limited Expense FSA (LEXFSA) used for dental and vision expenses only. -Tammy

Question: Did I hear you say all Federal retired can use the MHBP?

Answer: Yes, All federal employees and retirees may join this plan… it is not a restricted plan. -Tammy

Question: I have Kaiser HMO and am retired. I have never heard of them offering a HDHP. I’m not yet eligible for Medicare, and it will be cheaper to keep my coverage than buy Medicare Part B.

Answer: Kaiser does not offer a HDHP option. They do have a high and standard option and they also offer a Medicare Senior Advantage benefit for retirees with Medicare A & B. Kaiser is a one-stop shop for health care, where other health plans will require you to go to a pharmacy or fill prescriptions by mail order and see doctors and providers in facilities outside of your primary care provider’s office. You have to decide if you like the HMO model of Kaiser or the freedom of choosing any provider and paying higher cost sharing in some cases using Fee for Service, HDHP or CDHP plans. -Tammy

Question: Do all members of the family have to have the same plan as the Fed employee?

Answer: Yes -Jessica

Question: Aetna has a program that allows one to schedule a time to speak with an Aetna rep and get one-one conversations about a plan issue. They are great.

Answer: Yes… that is true! If you click on aetnafeds.com you will find the online chat available! -Tammy

Question: I have an HDHP for 2020. Can I contribute my total $8100 in Jan-April..Then, no longer contribute May-Dec and begin Medicare A in December?

Answer: Good question… I don’t have the answer off of the top of my head, but it is addressed in your plan brochure. Find your plan brochure at www.opm.gov. Click Insurance, then Healthcare, then Plan Information… click on your state and a drop down menu of all of the FEHB available to you will appear with links to the plan websites and plan brochures. -Tammy

Question: Thanks for your presentation.   I probably missed it but where does the money for the CDHP Health Fund come from, the premiums or elsewhere or some combination?

Answer: The health fund contributions are provided by the plan. -Tammy

Question: Does APWU consumer driven high deductible plan code 475 work well with Medicare Parts A and B?

Answer: I don’t believe that APWU offers the wrap around benefit with Medicare, but I don’t know that it is a bad choice… you may need to compare on other levels such as prescription coverage, premium and premium pass through amount. -Tammy

Question: I want to change insurance plans how do I let the one that I have now that I am not going to renew

Answer: When you take advantage of open season, you will either fill out a form (SF 2809 for employees OPM Form 2809 for retirees) or use your agency’s or OPM’s electronic service to switch plans. You will be asked to provide your current plan information and your new plan information. You do not need to contact your plan, this will automatically happen when your open season change is processed. -Tammy

Question: what are rules on HSA is there a lag time between when contributions are made and a switch to another plan because of being on medicare and no longer eligible. can the contributions continue right up to the switchover

Answer: To be sure, check your plan brochure or contact your health plan. -Tammy

Question: What is the link to the checkbook?

Answer: https://www.checkbook.org/newhig2/hig.cfm -Jessica

Question: Can a federal retiree have an HSA

Answer: Yes, as long as they don’t have other health insurance besides the HDHP -Tammy

Question: Where can I get information about a Federal retiree contributing to a HSA? I am confused on this point.

Answer: OPM provides more information about HSA/HRA and HDHP and CDHP on their website. In addition, the plan websites also offer great information such as: https://www.geha.com/plans/medical/2020/high-deductible-health-plan -Tammy

Question: You used the term health fund on the slides for the CDHP plans, but this term was not used when comparing HSA, FSA and HRA. Is the Health Fund for a CDHP an HRA?

Answer: Technically a health fund is usually linked to a CDHP and and HRA or and HSA is used with a HDHP… it gets confusing since all plans don’t use exactly the same language. -Tammy

Question: Do I need to cancel my HDHP for 2020 to begin Medicare in Dec 2020? Is there a way to take HDHP in 2020 and begin Medicare in December 2020?

Answer: Yes, but your HSA will become an HRA. Check your plan brochure to see how this works… I provided directions to locate your plan brochure in a previous answer. -Tammy

Question: Who do I contact to cancel my employer’s contribution?

Answer: Employer contribution to what? I don’t understand your question. -Tammy

Question: Who has the most cost conscious plan for a healthy couple?

Answer: There are quite a few… use the OPM plan comparison guide and the Checkbook Guide to Federal Health plans to get a list of plans in your zip code and to stack them up side by side as you will find multiple plans that may look similar, but offer differences in perks (such as cash for getting your annual physical or a flu shot) and in what types of services are covered (i.e. Foreign Service plan covers massage therapy and not all plans cover acupuncture or chiropractic care). -Tammy

Question: The premium pass-through was run through quickly.   What does it mean?   If it is a part of the HDHP, does that mean I could chose not contribute to the HSA, because I will be contributing based on the premium pass-through and the HSA account balance would reflect that?

Answer: Think of premium pass through as a rebate of some of the premium that you are paying for your health insurance. The premium is deducted from your retirement check or your pay check and then the insurance plan deposits some of the money they collected in premium into your HSA or HRA account for you to spend on your health care. -Tammy

Question: I’m retired, if I drop my husband from my federal health insurance can I add him back the following year?

Answer: Yes. You don’t need to cover your spouse and you will be able to add him as a family member during a later open season or if he cancels or loses his insurance later on. The only caution is that if you were to die in a self only plan, a surviving spouse may not enroll themselves. -Tammy

Question: How do I find out if my plan has wrap around coverage?

Answer: Check your plan’s website. There is generally a section of the website dedicated to Medicare coordination for every FEHB plan. Also, Section 9 of your FEHB plan brochure addresses Medicare coordination. -Tammy

Question: what does it mean when the plan says you pay 20% of the plans benefit or allowance?

Answer: If the charge by the provider / doctor is $200 and your plan allows $150 for that service, then your plan will pay 80% and you will pay $30 or 20%. -Tammy

Question: Since I am already in Medicare part A and A, can I still use HSA?

Answer: No, you may wish to choose a plan that offers a Medicare reimbursement (i.e. BC/BS Basic or Aetna Direct, for example) and that offers wrap around benefits as we discussed in the webinar. -Tammy

Question: Got on late. Can you summarize the CDHP plan. Am I eligible if I have Medicare?

Answer: Yes, you can have a CDHP and be enrolled in Medicare… a great CDHP to use with Medicare is Aetna Direct, for example. -Tammy

Question: Will there be any other seminars choosing the right healthcare plan this open season?

Answer: Yes, NARFE is hosting another webinar on that very topic on Nov. 21st -Jessica

Question: What is MHBP?

Answer: It is one of the providers of health insurance under the FEHB program. It used to be called Mail Handlers Benefit Plan, but currently goes by the acronym -Tammy

Question: Does the Blue Cross CDHP HRA reimburse for Medicare Part B Premiums?

Answer: No, but BC/BS Basic does provide an $800 reimbursement for 2020. The BlueChoice HDHP offers an HSA or an HRA with a premium pass through that can be used to pay Part B premiums (along with contributions you may have previously made to an HSA before enrolling in Medicare). -Tammy

Question: Did I hear correctly that if I receive VA benefits (both disability payments & health care) that precludes me from choosing CDHP or HDHP?

Answer: If you’ve taken advantage of using those benefits in the last three months, you won’t be permitted to contribute to an HSA, but you may enroll in a CDHP or an HDHP with an HRA! Sorry this is so confusing! See the link to OPM’s insurance information above to learn more! -Tammy

Question: explain the over 65 event to change outside of Open Season

Answer: https://www.opm.gov/healthcare-insurance/healthcare/plan-information/changes-you-can-make-outside-of-open-season/ -Jessica

Question: how do you change plan outside of open season if over age 65

Answer: https://www.opm.gov/healthcare-insurance/healthcare/plan-information/changes-you-can-make-outside-of-open-season/
-Jessica

Question: Is a CDHP health fund a type of HRA?

Answer: No. An HDHP is a type of CDHP and an HDHP offers an HSA or an HRA depending on whether you are qualified to have an HSA -Tammy

Question: What is the best plan for someone on Medicare with spouse that isn’t eligible yet (both are healthy)?

Answer: That’s a very individual question. Our benefits specialists can help you answer it. fedbenefits@narfe.org or 1-800-456-8410 -Jessica

Question: Great presentation!! Thank you for sharing your time and knowledge!

Answer: Thank you! -Jessica

Question: With my HDHP for 2020, do I need to wait until June to begin Medicare part A?

Answer: I’m not sure I understand this question. -Tammy

Question: If I have an HDHP for 2020, do I have to wait until March 2021 to apply for Medicare part !?

Answer: If you are age 55 or older, the IRS permits you to make additional “catch-up” contributions to
your HSA. The allowable catch-up contribution is $1,000. Contributions must stop once an individual is enrolled in Medicare. Additional details are available on the U.S. Department of Treasury website at
www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx -Tammy

Question: Just so I’m clear…if I have Medicare Part A, I am not allowed to have an HSA, correct? But I can have an HRA?

Answer: Correct. -Tammy

Question: Is a survivor annuitant who was never a federal employee subject to the same provisions and regulations with regard to the HDHP’s as her spouse would have been?

Answer: Yes. -Tammy

Question: does the Federal government make any contributions to any of these CDHP or HDHP’S?

Answer: No the contributions come from the plan. The federal government is responsible for a portion of the premium (an average of 72% of the premium of FEHB is paid by the government). -Tammy

Question: Which BCBS plan did you say retirees prefer?

Answer: Most FEHB participants are in BCBS standard. However, if you have Medicare, it’s worth considering switching to Basic. -Jessica

Question: Is the additional catch-up contribution to an HSA for those age 55 and older limited to $1,000 for both a self only plan and a family or +1 plan?

Answer: Yes -Tammy

Question: Is the Aetna Direct plan the best plan for an annuitant that has both madicae A and B?

Answer: There is no one best plan. Feel free to contact our benefits specialists to run through your options – fedbenefits@narfe.org -Jessica

Question: Is the Aetna Direct plan the best plan for an annuitant that has both Medicare Part A and Part B?

Answer: It is a great plan for retirees with Medicare A & B. There are other great plans for retirees with Medicare A & B… it pays to do a plan comparison, contact the plan using an online chat or 800 number, and consider your specific health care needs before making your final decision. -Tammy

Question: As a retiree, if I drop my spouse from my federal health insurance can I add them back in the next open season?

Answer: Yes… See above question that is similar to yours -Tammy

Question: If I already have a HSA and I start on Medicare I can no longer contribute but I can still use the balance to pay for health care expenses and not be taxed on withdrawals?

Answer: Yes -Tammy

Question: I am retired and enrolled in FEHB BCBS and have Medicare. I may have considerable dental expenses and would like to roll over and accumulate funds to pay for dental expenses. In order to do this, I would have to enroll in a HDHP, then enroll in HRA and stay with this plan. Is this correct?

Answer: I answered this question previously -Tammy

Question: FEHB

Answer: I wanted to add this from the AETNA HDHP Plan Brochure regarding HRA and Medicare: If you don’t qualify for an HSA when you enroll in this HDHP, or later become ineligible for an HSA, we will establish an HRA for you. If you are enrolled in Medicare, you are ineligible for an HSA and we will establish an HRA for you. You must tell us if you are or become ineligible to contribute to an HSA. -Tammy

Question: I am retired and enrolled in FEBP Blue Cross and have Medicare. I may have considerable dental expenses and would like to roll over and accumulate funds to pay for dental expenses. In order to do this, I would have to enroll in a HDHP, then enroll in HRA and stay with this plan. Is this correct?

Answer: Do you have Medicare? If you are not covered by Medicare A or B, then you may enroll in a HDHP plan for 2020 and contribute to an HSA so that you can pay your dental expenses with tax free dollars, but you are limited to the amount you can contribute annually. If you leave the HDHP plan, the money will stay in your HSA and can be spent in the future. -Tammy

Question: I just changed from a CDHP (self+1) plan to an HDHP (self+1) plan in 2019. Where can I get more detailed information on the topic of HRA? HRA was a confusing topic to me when I switched plans……I thought I was not eligible to apply.

Answer: Go to your plan’s website and study the plan brochure… both provide details on the HSA/HRA benefits. Every plan also has an 800 number to call for help as well. -Tammy

Question: I may have misunderstood before, but can part of an HSA be rolled over to the TSP? Non-Roth of course. BTW, I am CSRS retired

Answer: No, I don’t believe you can transfer funds from an HSA to the TSP. If you leave the money in an HSA account, the money grows tax-free and can be used tax-free to pay for qualified medical expenses. -Tammy

Question: A previous question referred to an MHBP. What is that?

Answer: See above answer to this question -Tammy

Question: Will the Q&A section be included in the rebroadcast?

Answer: Yes -Jessica

Question: My earlier question: ? Did I hear correctly that if I receive VA benefits (both disability payments & health care) that precludes me from choosing CDHP or HDHP? says answer pending. How long should I expect to wait for it?

Answer: The answer should be there. -Tammy

Question: If BCBS is primary and medicare part B is secondary for spouse of Gov employee who is still working, for scenarion which plan will be best for spouse?

Answer: Not sure what you mean? You and your spouse would need to be in the same plan unless you are both federal and eligible for individual coverage. If your spouse is under your plan and you are still employed, then they can delay/cancel part B and reenroll during a special enrollment period that will follow your retirement for 8 months with no penalty for late enrollment: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/part-a-part-b-sign-up-periods -Tammy

Question: In 2020 with medicare and basic, will we be able to be reimbursed for part of medicare premiums

Answer: If you mean BCBS Basic, yes, there is a reimbursement of $800 for your Medicare premiums -Jessica

Question: I am covered by Medicare Part B but my primary physician does not take Medicare Part B.   Can the health fund of a HDHP be used toward the physician’s fee?

Answer: Yes, you can use money in a health fund to pay your medical providers any out of pocket expense that you incur for medically necessary care. -Tammy

Question: I’m employed with USPS in APWU consumer driven plan with HRA (PCA they call it). My coworkers have warned me not to wait too long to go back to a more traditional plan like Blue Cross Std option, like I am leaving myself exposed somehow. I have been very happy with the APWU plan for 5 yrs and have $30K saved in a regular savings acct in case I get sick and use up the PCA money. I’m 53 yrs old, fairly healthy. Am I leaving myself exposed?

Answer: No, I think you are doing great and you have money set aside for future health care expenses. Are you close to age 65, yet? Here is the plan website that you can show your coworkers and you can check to see how this plan works with Medicare if you are over 65: https://www.apwuhp.com/our-plans/compare-plan-options/ -Tammy

Question: Does Aetna Direct have good prescription coverage?

Answer: Yes… it is comparable to BC/BS Standard Option -Tammy

Question: If you are a retired Fed with Medicare I thought you said you aren’t eligible to have an HSA?

Answer: That is true… if you are enrolled in a HDHP, you would have an HRA established rather than an HSA. -Tammy

Question: where is the best resource for additional into on HSAs (for retirees)

Answer: https://www.geha.com/plans/medical/2020/high-deductible-health-plan or https://www.opm.gov/healthcare-insurance/healthcare/health-savings-accounts/ or any HDHP plan brochure or website -Tammy

Question: Does Medicare & an FEHB plan (say BC/BS) provide complete, wrap-around coverage for a retired annuitant & spouse via Self + one? Or should FEHB be suspended in favor of a Medicare Advantage plan or a Medigap Plan?

Answer: You will pay more out of pocket using a Medigap or Medicare Advantage Plan… the only exception is if you qualify for extra assistance from the government then, you may want to pursue an Advantage plan option. Your federal plans offer excellent coverage and there are two Advantage plans that combine the excellent benefits of FEHB with some of the great benefits of an Advantage plan… they include the new Aetna Advantage (FEHB) and Kaiser Permanente Senior Advantage. You can find the plans here by clicking on your state: https://www.opm.gov/healthcare-insurance/healthcare/plan-information/plans/ -Tammy

Question: Thank you for an informative webinar. So much information and so little time.

Answer: Thank you! -Tammy

Question: Is there a way to find out about FEHB health fairs in the Washington, DC area that allow retirees to attend?

Answer: If you call NARFE chapters in your area, they may know. I do know that Congressman Connolly is hosting one on November 23 at the Fairfax County Government Center. There is usually one held also in suburban Maryland, but I don’t have the date. -Tammy

Question: If I have Medicare Part A and B can I participate in an HSA or HRA?

Answer: HRA -Tammy

Question: In general, do all plans (basic, standard, HD, etc) for provider (BCBS or GEHA) have the same preferred providers? That is, do I have to check for network providers for each plan I want to compare within GEHA or BCBS?

Answer: BC/BS uses the BC/BS network of providers, however GEHA may have a different network depending on where you live. Check the plan brochure or website to be sure. -Tammy

Question: Is Aetna Direct available in FL and do they have in-network doctors?

Answer: Yes, they are available in Florida and in most parts of the US. If you have Medicare as Primary, you only need to use doctors who accept Medicare. If you are not covered by Medicare, then this may not be the best plan for you. -Tammy

Question: Is Aetna Direct available everywhere? Is it an HMO plan or FFS? Does it work well with Medicare A & B?

Answer: Yes, it is available most everywhere in the US. It is more like a FFS than an HMO, however, it is listed under the HMO’s on OPM’s website. It is a plan that blurs the lines since you may go to any doctor that takes Medicare if Medicare is your primary coverage (you are retired). -Tammy

Question: Revision to an earlier question that was submitted. I just changed from a CDHP (self+1) plan to an HDHP (self+1) plan in 2019. Where can I get more detailed information on the topic of HRA? HRA was a confusing topic to me when I switched plans……I thought I was not eligible to apply. Forgot to mention that my wife and I are both retired and also with Medicare Parts A & B, it that makes a difference.

Answer: Go to the plan website or use the plan brochure to get detailed information such as: https://www.geha.com/ or https://www.opm.gov/healthcare-insurance/healthcare/plan-information/plans/ -Tammy

Question: Currently retired, I turn 65 in June and plan of enrolling in Medicare A and B. Do you think I should consider FEHB plan now or wait until next year to find the best option for retirees with Medicare?

Answer: If your current plan provides decent benefits when Medicare becomes available to you, you may want to wait until next open season to change plans and save your Medicare election for the future. You can delay enrollment in Medicare until 3 months after your birthday so that will bring you closer to the end of the year. https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/when-will-my-coverage-start -Tammy

Question: If I have Medicare as primary, and use a doctor who accepts Medicare but doesn’t accept my secondary insurance, am I responsible for paying the 20% Medicare doesn’t pay, out of my pocket?

Answer: Your doctor doesn’t need to be in your plans network unless you are using BC/BS Basic or unless you are in an HMO that doesn’t allow you to go outside of the Network. -Tammy

Question: A great presentation. Thanks for all the info and the Q&A.

Answer: Thank you very much! -Tammy

Question: to confirm if actively working medicare can be put off and FEHB only until retirement then both?

Answer: Yes, you can delay Medicare Part B if you are working AND covered by health insurance through your employment. There is no penalty for late enrollment in Part B as long as you enroll within the special enrollment period that follows your retirement for 8 months. there is no premium for Medicare Part A as you’ve paid the Medicare tax during your federal career. -Tammy

Question: What is the link to the new 2020 FEP rates?

Answer: https://www.opm.gov/healthcare-insurance/healthcare/plan-information/premiums/ -Tammy

Question: Did I hear you correctly: If I receive VA benefits (disability payments and health care) does that preclude me from choosing CHDP or HDHP?

Answer: You can have either one, but if you have an HDHP, you won’t be able to set up an HSA if you have used VA healthcare benefits in the last 3 months. -Tammy

Question: Thank you for an informative Webinar and a great answer session. Both your patience and your breadth of knowledge are very impressive!

Answer: Thank you so much! -Tammy

Question: Does GEHA have a CDHP that can be used with Medicare?

Answer: No, but they offer a high option plan next year that has a Medicare reimbursement fund: https://www.geha.com/plans/medical/2020/high-option -Tammy

Question: I’ve been listening to your podcasts with Mike Causey for years, but just recently joined NARFE. Thank you for all your breadth of knowledge that you share with the federal workforce.

Answer: Thank you, I appreciate your kind comments! -Tammy

Question: If we have private LTCare policies, can we still set up an HSA to pay premiums?

Answer: Yes… LTC insurance would not preclude contributions to an HSA. -Tammy

Question: Another GREAT webinar! THANK YOU!!

Answer: Thank you!! -Tammy

Question: 2020 part b premiums announced?

Answer: Hopefully soon! -Jessica