Struggling to understand Medicare Part B in retirement? You're in good company

In the world of healthcare, understanding Medicare Part B can be crucial for those aged 65 and above. Here's a breakdown of some key points to help you navigate this essential part of Medicare.

Firstly, it's important to note that enrolling in Medicare Part B during your Initial Enrollment Period (IEP) is advisable. This period begins three months before you turn 65 and ends three months after the month you turn 65. Retirees have eight months from the month they turn 65 to apply for Medicare Part B.

The standard premium for Medicare Part B in 2025 is $185 per month for individuals with Modified Adjusted Gross Income (MAGI) below $106,000. For married couples filing a joint tax return, the standard premium for each spouse is $185 per month if their MAGI is below $212,000. However, if your MAGI exceeds these limits, your premium may increase by an additional $74 per month or more.

There's no premium for Medicare Part A, but individuals who didn't enroll during their IEP can sign up for Part A any time after turning 65. Coverage can't start earlier than the month you turn 65, and it starts six months back from when you sign up or when you apply for benefits from Social Security (or the Railroad Retirement Board).

delaying enrollment in Medicare Part B can result in a late enrollment penalty. This penalty is a permanent 10% increase in premium for each 12-month period that you delay enrollment.

Some FEHB plans, such as Aetna Direct and GEHA High Option, provide a partial rebate for Part B. Aetna Direct offers an $900 annual Part B reimbursement per Part B-enrolled individual, while GEHA High Option offers a $1,000 annual Part B reimbursement per Part B-enrolled individual.

BC/BS Basic Option is another popular FEHB plan. It waives out-of-pocket copays and coinsurance when Medicare A or B are the primary payer of your inpatient or outpatient medical care. BC/BS Basic Option also provides Medicare prescription drug coverage (Part D) and a Part B reimbursement of $800 annually (per individual enrolled in Part B).

If you are above a certain income level, you may pay an Income-Related Monthly Adjustment Amount (IRMAA) to Social Security for Part D coverage. If you are carrying FEHB coverage through a survivor annuity, you may be subject to a late enrollment penalty for Medicare Part B.

To find your current FEHB plan, visit OPM, click on your state, and then click on the link to your plan's website. Every plan website has a page that explains coordination with Medicare. There is no requirement to enroll in Medicare Part D, but it can be enrolled in with no additional premium through most FEHB carriers. BC/BS offers Part D prescription drug benefits to members who have Medicare at no added FEP premium cost.

Remember, this article is designed to provide factual information about Medicare Part B and FEHB plans. For personalised advice, it's always best to consult with a healthcare professional or Medicare representative.