The true value of FEHB?
The true value of FEHB?
I am in my 40s after 20 years fed service. I plan to retire at 50 regardless with FERS special provision or separating early and going private. I am weighing my options for a 2nd chapter and trying to compare paths. If I sepate early I lose the lifetime FEHB. One of the catches when I’m weighing options is FEHB. All other things being equal, If I separate, how do I weigh the dollar value of FEHB from 50 until death?
FEHB has the gov paying 70 percent of premiums for life, but is similar to a Medicare supplement once you are eligible at 65. It makes for a complicated formula to determine the value, but wondering if someone had some ideas. My initial thought was from 50 to 65 it is worth 70% of my current premiums. At 65 it becomes similar in value to Medicare supplemental until death, but not sure how much that really costs.
I had a friend who valued it at $80,000 in this scenario, but I was putting it closer to $220,000+Medicare supplemental cost.
Federal friends please help!
FEHB has the gov paying 70 percent of premiums for life, but is similar to a Medicare supplement once you are eligible at 65. It makes for a complicated formula to determine the value, but wondering if someone had some ideas. My initial thought was from 50 to 65 it is worth 70% of my current premiums. At 65 it becomes similar in value to Medicare supplemental until death, but not sure how much that really costs.
I had a friend who valued it at $80,000 in this scenario, but I was putting it closer to $220,000+Medicare supplemental cost.
Federal friends please help!
Re: The true value of FEHB?
I'd say it is worth more at 65 than a Medicare supplement plan. There is one new plan, at least, that covers all copays and deductibles ($7 copay on generic meds) and reimburses the full amount of Medicare Part B for less than a $300/mo premium for two.Ricky6 wrote: ↑Fri May 14, 2021 4:42 pm I am in my 40s after 20 years fed service. I plan to retire at 50 regardless with FERS special provision or separating early and going private. I am weighing my options for a 2nd chapter and trying to compare paths. If I sepate early I lose the lifetime FEHB. One of the catches when I’m weighing options is FEHB. All other things being equal, If I separate, how do I weigh the dollar value of FEHB from 50 until death?
FEHB has the gov paying 70 percent of premiums for life, but is similar to a Medicare supplement once you are eligible at 65. It makes for a complicated formula to determine the value, but wondering if someone had some ideas. My initial thought was from 50 to 65 it is worth 70% of my current premiums. At 65 it becomes similar in value to Medicare supplemental until death, but not sure how much that really costs.
I had a friend who valued it at $80,000 in this scenario, but I was putting it closer to $220,000+Medicare supplemental cost.
Federal friends please help!
Re: The true value of FEHB?
https://www.uhcfeds.com. See the one called Retiree Advantage Plan for FEHBP annuitants. In my area, the monthly premium is $270/mo when the Retiree Advantage plan is paired with their Choice Plus Advanced plan. I'm not Medicare age yet, but I'm looking at this plan as a possibility.
Last edited by Tdubs on Fri May 14, 2021 7:00 pm, edited 2 times in total.
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Re: The true value of FEHB?
This would be rolling the dice but you can always leave and try to return later.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
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Re: The true value of FEHB?
How long do you have to work when you come back? is there a minimum amount of time?rich126 wrote: ↑Fri May 14, 2021 7:07 pm This would be rolling the dice but you can always leave and try to return later.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Re: The true value of FEHB?
The dollar value of FEHB may be less important than the access to FEHB, pre-Medicare.
I don’t know how to quantify that, since what it gives you is flexibility. You can stop working, take a job with expensive health insurance options, or become self-employed — and not have to worry about your coverage.
I don’t know how to quantify that, since what it gives you is flexibility. You can stop working, take a job with expensive health insurance options, or become self-employed — and not have to worry about your coverage.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: The true value of FEHB?
to compare things after 65-medicare, consider that FEHB has a drug plan included.
also, every year you can switch companies, for whatever reason you want. it's hard to put a price on that.
also, every year you can switch companies, for whatever reason you want. it's hard to put a price on that.
Re: The true value of FEHB?
Most people at 65 pick a Medicare supplement to cover the 20% that Medicare does not cover. They also have to pick a drug plan. With FEHB you pick ANY plan as if you were still working. Some work better with Medicare than others but they all include drug benefits. The point is you have choices and can easily switch plans every open season without underwriting. I don’t know how you can put a $$ value to this.
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Re: The true value of FEHB?
Medicare + FEHB is a great combination.
Re: The true value of FEHB?
So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
Re: The true value of FEHB?
Ricky6 wrote: ↑Sat May 15, 2021 9:00 am So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
You can find Medigap costs here: https://www.medicare.gov/medigap-supple ... &year=2021
Obviously, a married person is going to have different savings than a single person.
And, also obviously, a dollar today is worth more than a dollar in 10 years. Although health insurance costs have been rising faster than overall inflation.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: The true value of FEHB?
When you consider that the coverage you can get through FEHB might be only $300/mo and has no copays or deductibles, wouldn't the monthly savings be even more than $450/mo?Ricky6 wrote: ↑Sat May 15, 2021 9:00 am So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
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Re: The true value of FEHB?
Last five years prior to retirement if I recall correctly.Soon2BXProgrammer wrote: ↑Fri May 14, 2021 9:19 pmHow long do you have to work when you come back? is there a minimum amount of time?rich126 wrote: ↑Fri May 14, 2021 7:07 pm This would be rolling the dice but you can always leave and try to return later.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
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Re: The true value of FEHB?
i thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 amLast five years prior to retirement if I recall correctly.Soon2BXProgrammer wrote: ↑Fri May 14, 2021 9:19 pmHow long do you have to work when you come back? is there a minimum amount of time?rich126 wrote: ↑Fri May 14, 2021 7:07 pm This would be rolling the dice but you can always leave and try to return later.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
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Re: The true value of FEHB?
Per OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 ami thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 am Last five years prior to retirement if I recall correctly.
In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
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Re: The true value of FEHB?
I'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?dukeblue219 wrote: ↑Sat May 15, 2021 11:15 amPer OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 ami thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 am Last five years prior to retirement if I recall correctly.In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Re: The true value of FEHB?
It says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pmI'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?dukeblue219 wrote: ↑Sat May 15, 2021 11:15 amPer OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 ami thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 am Last five years prior to retirement if I recall correctly.In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: The true value of FEHB?
Technically, 1 pay period, or however long it takes for your FEHB to start as a returned employee. You just need five most recent years of coverage. You don't need to stay another 5 years.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 amLast five years prior to retirement if I recall correctly.Soon2BXProgrammer wrote: ↑Fri May 14, 2021 9:19 pmHow long do you have to work when you come back? is there a minimum amount of time?rich126 wrote: ↑Fri May 14, 2021 7:07 pm This would be rolling the dice but you can always leave and try to return later.
After 15 years I couldn't see myself surviving another 20 years in the government and left. Mostly I was glad I left since much of the time I had a good time. I went back at age 50 and stayed until I reached my MRA (based on my DOB that was 56) and qualified for a postponed retirement. In that scenario I can delay my health insurance and pension until age 60 (due to having 20 years of service) and then receive both w/o penalty.
My other option would have been to take the insurance and pension at 56 but that would have meant a 30% permanent cut in my pension.
Of course you have to be "lucky" enough to get another offer to come back. If you are technical, it is likely to happen but takes patience and persistence.
I'm glad I did leave because my friends ended up being mostly miserable and just stuck around for the pension/insurance. As good as FEHB may be, it isn't worth being miserable for 5, 10+ years IMO.
Re: The true value of FEHB?
You absolutely can work for 2 years ,leave and come back for 3 years, what you can't do is stay employed and drop the coverage.delamer wrote: ↑Sat May 15, 2021 3:24 pmIt says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pmI'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?dukeblue219 wrote: ↑Sat May 15, 2021 11:15 amPer OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 ami thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.dukeblue219 wrote: ↑Sat May 15, 2021 10:40 am Last five years prior to retirement if I recall correctly.In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
"the 5 years of service immediately before the date your annuity starts" is your five most recent years of federal employment, not the five calendar years before you start your immediate annuity.
Last edited by tj on Sat May 15, 2021 5:58 pm, edited 1 time in total.
Re: The true value of FEHB?
The cheapest Medicare Part D Plan is something like $7/mo, the cheapest MediGap plan is G High Deductible which is as low as $30/mo in some states. Medigap's tend to get more expensive as you age, some states you can change insurers annually, some you can't.Ricky6 wrote: ↑Sat May 15, 2021 9:00 am So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
If I reach sufficient net worth before I hit MRA, I'm not sure I would stick around just for FEHB. Medigap and Part D is good enough. If The 2021/2022 ACA cliff removal is made permanent, ACA could be good enough too.
Re: The true value of FEHB?
Very interesting.tj wrote: ↑Sat May 15, 2021 5:54 pmYou absolutely can work for 2 years ,leave and come back for 3 years, what you can't do is stay employed and drop the coverage.delamer wrote: ↑Sat May 15, 2021 3:24 pmIt says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pmI'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?dukeblue219 wrote: ↑Sat May 15, 2021 11:15 amPer OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 am
i thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
"the 5 years of service immediately before the date your annuity starts" is your five most recent years of federal employment, not the five calendar years before you start your immediate annuity.
It appears I stand corrected.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: The true value of FEHB?
I’d agree regarding Medigap and Part D. Although with GEHA Standard and no Part B, our premium is less than $300/month for 2 people.tj wrote: ↑Sat May 15, 2021 5:57 pmThe cheapest Medicare Part D Plan is something like $7/mo, the cheapest MediGap plan is G High Deductible which is as low as $30/mo in some states. Medigap's tend to get more expensive as you age, some states you can change insurers annually, some you can't.Ricky6 wrote: ↑Sat May 15, 2021 9:00 am So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
If I reach sufficient net worth before I hit MRA, I'm not sure I would stick around just for FEHB. Medigap and Part D is good enough. If The 2021/2022 ACA cliff removal is made permanent, ACA could be good enough too.
But it’s that period post-employment and pre-Medicare that would make me very nervous, especially having to cover 10 or more years. Whether any ACA provision can be considered permanent is debatable.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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Re: The true value of FEHB?
So lets assume, i have 5 years of federal civilian service. I bought back 4 years of military time... So if i work for 1 year at my MRA, i'll qualify? (of course if i work 3 years at my MRA my high 3 calculation would be much better)tj wrote: ↑Sat May 15, 2021 5:54 pmYou absolutely can work for 2 years ,leave and come back for 3 years, what you can't do is stay employed and drop the coverage.delamer wrote: ↑Sat May 15, 2021 3:24 pmIt says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pmI'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?dukeblue219 wrote: ↑Sat May 15, 2021 11:15 amPer OPM.gov:Soon2BXProgrammer wrote: ↑Sat May 15, 2021 10:42 am
i thought the rule was you had to have the last 5 years of employment opted into FEHB.. it wasn't clear if it had to be continuous.In order to carry your FEHB coverage into retirement, you must be entitled to retire on an immediate annuity under a retirement system for civilian employees (including the Federal Employees Retirement System (FERS) Minimum Retirement Age (MRA) + 10 retirement) and must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
"the 5 years of service immediately before the date your annuity starts" is your five most recent years of federal employment, not the five calendar years before you start your immediate annuity.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Re: The true value of FEHB?
As long as your 4 military years of bought back time counts as part of the ten years for MRA+10. No idea since it doesn't apply to me and I don't work in a position that would be exposed to that. I don't know if you need 10 years before you add the military time. But if it didn't count, you could go back at 62 to restart it and retire on annuity and keep the FEHB.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 9:10 pmSo lets assume, i have 5 years of federal civilian service. I bought back 4 years of military time... So if i work for 1 year at my MRA, i'll qualify? (of course if i work 3 years at my MRA my high 3 calculation would be much better)tj wrote: ↑Sat May 15, 2021 5:54 pmYou absolutely can work for 2 years ,leave and come back for 3 years, what you can't do is stay employed and drop the coverage.delamer wrote: ↑Sat May 15, 2021 3:24 pmIt says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pmI'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?
"the 5 years of service immediately before the date your annuity starts" is your five most recent years of federal employment, not the five calendar years before you start your immediate annuity.
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Re: The true value of FEHB?
Makes sense. im pretty sure MRA+10 only required 5 years of civilian time... "An employee must have at least 5 years of creditable civilian service to be eligible for an MRA + 10 retirement annuity." from: https://www.opm.gov/retirement-services ... k/c042.pdf (i know this is an old document, but i have seen it elsewhere, but i can't put my fingers on a more recent document)tj wrote: ↑Sat May 15, 2021 10:46 pmAs long as your 4 military years of bought back time counts as part of the ten years for MRA+10. No idea since it doesn't apply to me and I don't work in a position that would be exposed to that. I don't know if you need 10 years before you add the military time. But if it didn't count, you could go back at 62 to restart it and retire on annuity and keep the FEHB.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 9:10 pmSo lets assume, i have 5 years of federal civilian service. I bought back 4 years of military time... So if i work for 1 year at my MRA, i'll qualify? (of course if i work 3 years at my MRA my high 3 calculation would be much better)tj wrote: ↑Sat May 15, 2021 5:54 pmYou absolutely can work for 2 years ,leave and come back for 3 years, what you can't do is stay employed and drop the coverage.delamer wrote: ↑Sat May 15, 2021 3:24 pmIt says the 5 years of service immediately before the date your annuity starts. So, for example, you can’t work for 2 years with FEHB, leave (or drop coverage) for 2 years, come back for 3 years with FEHB, and then get coverage in retirement.Soon2BXProgrammer wrote: ↑Sat May 15, 2021 2:10 pm
I'm not disagreeing on that.. i thought i saw somewhere that the 5 years doesn't have to be continuous, as long as the last 5 years of service you had been continuously enrolled in FEHB?
"the 5 years of service immediately before the date your annuity starts" is your five most recent years of federal employment, not the five calendar years before you start your immediate annuity.
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Re: The true value of FEHB?
I agree. There's also the possibility that medicare age gets reduced, so depending on how long before Medicare starts tat you retire, how long you can utilize that FEHB while being retired, which determines the value. Also if someone is going to be in massive IRMAA territory, FEHB could be hugely valuable after medicare age because you can bypass Medicare and associated IRMAA and just stay on FEHB.delamer wrote: ↑Sat May 15, 2021 9:02 pmI’d agree regarding Medigap and Part D. Although with GEHA Standard and no Part B, our premium is less than $300/month for 2 people.tj wrote: ↑Sat May 15, 2021 5:57 pmThe cheapest Medicare Part D Plan is something like $7/mo, the cheapest MediGap plan is G High Deductible which is as low as $30/mo in some states. Medigap's tend to get more expensive as you age, some states you can change insurers annually, some you can't.Ricky6 wrote: ↑Sat May 15, 2021 9:00 am So now we know what FEHB gives you.... could someone hazard a guess on how much that is worth?
How much would a supplemental and drug plan cost from 65 to 90? That might give me a good starting point.
Would that be something like 450 a month? So roughly 135k?
With that said, and what would it cost for a similar health plan from 50 to 65? I’m guessing about 800 a month minus the 30 percent you pay into FEHB. so somewhere around 250k
Grand total maybe 385k?
If I reach sufficient net worth before I hit MRA, I'm not sure I would stick around just for FEHB. Medigap and Part D is good enough. If The 2021/2022 ACA cliff removal is made permanent, ACA could be good enough too.
But it’s that period post-employment and pre-Medicare that would make me very nervous, especially having to cover 10 or more years. Whether any ACA provision can be considered permanent is debatable.