Retirees must use caution choosing health care plans

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Dear Sgt. Shaft,

I'm really confused on what to do when I'm finally 65 and Medicare is an option. I am 60 years old and still actively employed by the federal government. I have Tricare because of my retirement from the military. I have FEHBA (Federal Employee Health Benefits Act) as my primary insurance and Tricare as my secondary provider.

It is my understanding that when I turn 65, the benefits change if I'm retired from the federal government. I have been told that a large percentage of the doctors in the Washington area will not take you as a patient because they will get less revenue. Also, a large portion of the Washington-area doctors will not accept Tricare as the primary insurance.

The question I have is, when I retire, should I drop FEHBA insurance and use Medicare B as the primary and Tricare (which is free) as secondary, or should I maintain FEHBA insurance (decline Medicare B) and use Tricare as secondary, or take all three insurances (one free and paying for Medicare B and FEHBA)? What is the best formula?

Thank you,

Michael R.

Washington

Dear Mike,

My sources tell me that the choice of medical coverage is very personal and one size may not fit all. However, you do need to realize that if you decline enrollment in Medicare at age 65, you will not have Tricare as secondary insurance. You will rely completely upon the Federal Employee Health Benefits Program (FEHBP) because you lose your Tricare eligibility if you decline Medicare.

Many federal retirees who have eligibility for Tricare do enroll in Medicare and Tricare for Life (TFL) at age 65 and suspend, not cancel, their FEHBP. That way, if they don't like Tricare, they can opt out of it and re-enroll in FEHBP during a general enrollment period. If you ever cancel FEHBP in retirement, you cannot get it back.