Military retirees with 2nd careers must balance insurances

I retired from 20 years of active military service at age 45. After military retirement, I began a second career working for the Department of Defense as a federal employee. I worked for 20 years and will retire from federal service this September. I currently carry a Blue Cross/Blue Shield Federal Employee Health Benefit Plan. I turn 65 in September, and I have my Medicare Parts A and B set to begin Sept. 1.

Beginning September, I will have three insurances: FEHBP, Medicare A and B, and TRICARE. Which insurance is primary, which is secondary and which is pays last? What are the costs of each of these insurance? Do I really need three insurances?

Your situation is common, especially in the Washington, D.C., metro area. Many military retirees have second careers with the federal government. Once you are both a retired federal employee and age 65 the order of your insurances will be: Medicare will be primary, your FEHBP secondary and TRICARE will be tertiary.

Medicare Part A is premium-free for most people. Medicare Part B has a base premium of $104.90 per month. If you are a higher-earner (i.e., modified adjusted gross income above $85,000 a year for a single person or above $170,000 for a married couple), you will pay more each month for Medicare Part B. You may visit www.ssa.gov/pubs/ EN-05-10536.pdf for the monthly Part B premiums for higher income people.

Your FEHBP plan (Blue Cross/Blue Shield) will not reduce your monthly premiums once Medicare becomes primary. Remember that every year in early November the federal health plans have an open season. You may visit www.opm.gov for more information on your options each year.

TRICARE at age 65 is termed TRICARE for Life. TFL requires you to enroll into Medicare A and B. There is no monthly premium for TFL. TFL is designed to supplement Medicare A and B. TFL offers a drug benefit that is better than Medicare's Part D benefit; you would not need to consider a Medicare Part D plan.

Please note that TRICARE for Life differs from the Johns Hopkins US Family Health Plan. Some military retirees in this area carry USFHP. Since you are not currently covered by this insurance, this option will not be addressed. For those readers who do subscribe to USFHP, you may visit www.tricare.mil/usfhp for more information on Medicare eligibility and this option.

As mentioned, since it is very common for military retirees to have a second career with the federal government, the Office of Personnel Management allows people with TRICARE for Life the option of suspending their FEHBP plan. If you suspend your FEHBP plan to use TRICARE for Life, you save premium costs; you do not have to pay the monthly premium for your FEHBP insurance. This gives you the opportunity to use Medicare as your primary insurance and TFL as your secondary insurance.

If you are not happy with this arrangement, you may reactivate your FEHBP during any FEHBP open season.

For more information on suspending your FEHBP, visit www.opm.gov or call 1-888-767-6738 (202-606-0500 in the D.C. calling area).

Amy Rubino is director of the Senior Health Insurance Assistance Program and the Senior Medicare Patrol for the Anne Arundel County Department of Aging and Disabilities. You may contact either program at 410-222-4464 or ship_program@aacounty.org.