The following is a question submitted by a Federal Times reader to columnist Kevin Moss, a senior editor at Consumers’ Checkbook and expert on federal employee health insurance plans for civil servants, retirees and their families.
The question and response have been edited for clarity and confidentiality.
A Fed Times reader asks:
“Are three two separate payments or two payments in one? I know there is a Part B payment, but didn’t know they attached a payment called IRMAA to the Part B payment.
Boy, this is rough on a retiree’s fixed income.”
Kevin’s response:
If you’re an individual tax filer and your modified adjusted gross income is above $103,000 or if you’re a joint tax filer with modified adjusted gross income above $206,000, you’ll be subject to an income related monthly adjustment amount, or IRMAA. In the first income tier of IRMAA, you’ll pay an additional $69.90/month for Part B and an additional $12.90/month for Part D. If you’re subject to IRMAA it will be added to the Part B premium.
Your choice of plans can help mitigate the additional Part B premium. Many, but not all, FEHB plans will eliminate out-of-pocket costs for doctor and outpatient services, and there are a couple of FEHB plans that offer a partial Part B premium reimbursement. Also, some MA plans offered by FEHB plans have $0 out-of-pocket costs for approved medical services from providers that accept Medicare and the plan, besides prescription drugs. Most of the MA plans offered by FEHB plans also include generous Part B premium reimbursement. The combination of $0 out-of-pocket costs (besides prescription drugs) and Part B premium reimbursement, help make MA plans offered by FEHB plans the lowest cost plan type for most federal annuitants.
Have a question about your FEHB plan or the federal insurance marketplace? Send your query to benefitsexpert@federaltimes.com
Kevin Moss works for Consumers' Checkbook, a nonprofit dedicated to helping consumers make informed decisions. He leads the production of Checkbook's Guide to Health Plans for Federal Employees, a decision support tool that helps federal employees and annuitants find the FEHB plan that's the best fit.
