Let’s Talk About One of the Most Confusing (and Costly) Retirement Decisions…
So, you’ve got FEHB. You’ve probably read about Medicare. And if you’ve been following along with these newsletters, you now know how they work together.
But now you’re stuck on one big question:
Do I really need Medicare Part B?
Or is it just another bill I don’t need?
It’s one of the biggest decisions you’ll make in retirement.
And here’s the thing—most retirees either overpay or underprepare because they don’t fully understand how this works.
So today, we’re going to clear this up once and for all.
(And if you haven’t already, make sure to grab my free guide—this newsletter covers the high-level strategy, but the guide walks you step-by-step how to make the right choice for you.)
What is Medicare Part B (And Why Does It Matter?)
Let’s break this down into plain English.
Medicare Part A – Covers hospital stays. It’s free for most people.
Medicare Part B – Covers outpatient care (doctors, specialists, tests, preventive care). It costs money every month.
Most federal retirees know they should enroll in Medicare Part A (because it’s free), but they’re unsure about Part B (because it has a premium).
And this is where a lot of people get stuck.
On one hand, you don’t want to waste money on an extra premium if you don’t need it.
On the other hand, if you skip Part B and later decide you need it, you’ll be hit with lifetime penalties.
So what’s the right move? Let’s find out.
What Happens If You Enroll in Medicare Part B?
When you enroll in Part B, it becomes your primary insurance for outpatient care.
Here’s what that means in real numbers:
Before Medicare: Let’s say you have an FEHB plan with a $500 deductible and 20% coinsurance for outpatient services. A specialist visit could cost you hundreds of dollars.
After Medicare: Medicare pays 80% of outpatient costs, and FEHB picks up most of the rest. Your out-of-pocket expenses will drop significantly.
Example:
Without Part B: You might pay $1,500 for a surgery after FEHB covers its share.
With Part B: Medicare pays first, FEHB picks up the rest, and your cost could be $0.
Bottom line: If you need frequent medical care, specialist visits, or outpatient procedures, enrolling in Part B could save you thousands.
What Happens If You Skip Medicare Part B? (The Risks & Costs)
Now, let’s talk about what happens if you don’t enroll in Part B.
The Risks:
Higher Out-of-Pocket Costs – You’ll rely 100% on FEHB for outpatient care, and it won’t cover everything.
Lifetime Penalties – If you delay enrollment, you’ll pay a 10% penalty for every year you waited.
Gaps in Coverage – Some FEHB plans work better with Medicare and skipping it could mean higher costs later.
Real Example:
I had a client, Linda, who decided to skip Part B because she thought she didn’t need it.
Four years later, she needed multiple outpatient procedures and realized her FEHB plan left her paying way more than she expected.
When she finally enrolled in Part B, she was hit with a 40% penalty on her monthly premium—for life.
Her new premium was $244/month instead of $174.70—just because she waited.
Don’t make this mistake.
Not sure if you should enroll? My free guide will help you decide.
[Get it here now]
Who Should Skip Medicare Part B? (A Few Exceptions)
There are a few cases where it makes sense not to enroll in Part B.
You’re Still Working Past 65 – If you’re covered under an FEHB plan as an active employee, you can delay Part B without penalty.
You Have an FEHB Plan That Covers Everything You Need – Some retirees choose high-cost FEHB plans that already include strong outpatient coverage.
You Don’t Mind Higher Out-of-Pocket Costs – If you’re extremely healthy and rarely see doctors, you might prefer to take the risk.
But remember: Once you leave your job, you only have 8 months to enroll in Part B without a penalty.
I explain all the key deadlines in my free guide.
[Download it here]
How Much Does Medicare Part B Actually Cost?
Here’s what you’ll pay for Part B in 2024:
$174.70/month if your income is $103,000 or less (single) or $206,000 or less (married).
If your income is higher, you’ll pay an extra surcharge called IRMAA.
Late enrollment penalty: 10% for every year you waited.
Reminder: The premium adjusts each year, so check Medicare’s site for updates.
What’s the Right Move for You?
You should enroll in Medicare Part B if:
You want lower out-of-pocket costs for doctor visits and outpatient care.
You want to avoid lifetime penalties.
You want the best possible coverage in retirement.
You might skip it if:
You’re still working past 65 with FEHB coverage.
You have an FEHB plan that fully meets your needs (rare).
You’re okay with higher out-of-pocket costs if something happens.
Want to make sure you’re making the right decision?
[Download my free guide here] and get a step-by-step breakdown of what’s best for you.
What’s Next? (And Why You Should Stick Around for the Next Issue)
You now know whether Medicare Part B is right for you.
But there’s one last piece of the puzzle:
How does Medicare work with your FEHB plan choice?
Are you in the best FEHB plan for your situation?
Could switching to a different FEHB plan save you even more money?
That’s exactly what we’ll cover in the next issue:
Choosing the Right FEHB Plan in Retirement—What Most Retirees Get Wrong"
You won’t want to miss this one. Make sure you’re subscribed.
[Sign up for my weekly newsletter here]
Final Thoughts (Let’s Wrap This Up)
This decision matters more than you think.
Get it right? You’ll have lower medical costs, better coverage, and peace of mind. Get it wrong? You could end up overpaying or facing costly penalties.
That’s why I created my free guide—to help federal retirees navigate these decisions with confidence.
[Click here to get your copy now]
And if this helped you, share it so other federal employees don’t make costly mistakes.
Talk soon,
Jeff
Let’s Talk About One of the Most Confusing (and Costly) Retirement Decisions…
So, you’ve got FEHB. You’ve probably read about Medicare. And if you’ve been following along with these newsletters, you now know how they work together.
But now you’re stuck on one big question:
Do I really need Medicare Part B?
Or is it just another bill I don’t need?
It’s one of the biggest decisions you’ll make in retirement.
And here’s the thing—most retirees either overpay or underprepare because they don’t fully understand how this works.
So today, we’re going to clear this up once and for all.
(And if you haven’t already, make sure to grab my free guide—this newsletter covers the high-level strategy, but the guide walks you step-by-step how to make the right choice for you.)
What is Medicare Part B (And Why Does It Matter?)
Let’s break this down into plain English.
Medicare Part A – Covers hospital stays. It’s free for most people.
Medicare Part B – Covers outpatient care (doctors, specialists, tests, preventive care). It costs money every month.
Most federal retirees know they should enroll in Medicare Part A (because it’s free), but they’re unsure about Part B (because it has a premium).
And this is where a lot of people get stuck.
On one hand, you don’t want to waste money on an extra premium if you don’t need it.
On the other hand, if you skip Part B and later decide you need it, you’ll be hit with lifetime penalties.
So what’s the right move? Let’s find out.
What Happens If You Enroll in Medicare Part B?
When you enroll in Part B, it becomes your primary insurance for outpatient care.
Here’s what that means in real numbers:
Before Medicare: Let’s say you have an FEHB plan with a $500 deductible and 20% coinsurance for outpatient services. A specialist visit could cost you hundreds of dollars.
After Medicare: Medicare pays 80% of outpatient costs, and FEHB picks up most of the rest. Your out-of-pocket expenses will drop significantly.
Example:
Without Part B: You might pay $1,500 for a surgery after FEHB covers its share.
With Part B: Medicare pays first, FEHB picks up the rest, and your cost could be $0.
Bottom line: If you need frequent medical care, specialist visits, or outpatient procedures, enrolling in Part B could save you thousands.
What Happens If You Skip Medicare Part B? (The Risks & Costs)
Now, let’s talk about what happens if you don’t enroll in Part B.
The Risks:
Higher Out-of-Pocket Costs – You’ll rely 100% on FEHB for outpatient care, and it won’t cover everything.
Lifetime Penalties – If you delay enrollment, you’ll pay a 10% penalty for every year you waited.
Gaps in Coverage – Some FEHB plans work better with Medicare and skipping it could mean higher costs later.
Real Example:
I had a client, Linda, who decided to skip Part B because she thought she didn’t need it.
Four years later, she needed multiple outpatient procedures and realized her FEHB plan left her paying way more than she expected.
When she finally enrolled in Part B, she was hit with a 40% penalty on her monthly premium—for life.
Her new premium was $244/month instead of $174.70—just because she waited.
Don’t make this mistake.
Not sure if you should enroll? My free guide will help you decide.
[Get it here now]
Who Should Skip Medicare Part B? (A Few Exceptions)
There are a few cases where it makes sense not to enroll in Part B.
You’re Still Working Past 65 – If you’re covered under an FEHB plan as an active employee, you can delay Part B without penalty.
You Have an FEHB Plan That Covers Everything You Need – Some retirees choose high-cost FEHB plans that already include strong outpatient coverage.
You Don’t Mind Higher Out-of-Pocket Costs – If you’re extremely healthy and rarely see doctors, you might prefer to take the risk.
But remember: Once you leave your job, you only have 8 months to enroll in Part B without a penalty.
I explain all the key deadlines in my free guide.
[Download it here]
How Much Does Medicare Part B Actually Cost?
Here’s what you’ll pay for Part B in 2024:
$174.70/month if your income is $103,000 or less (single) or $206,000 or less (married).
If your income is higher, you’ll pay an extra surcharge called IRMAA.
Late enrollment penalty: 10% for every year you waited.
Reminder: The premium adjusts each year, so check Medicare’s site for updates.
What’s the Right Move for You?
You should enroll in Medicare Part B if:
You want lower out-of-pocket costs for doctor visits and outpatient care.
You want to avoid lifetime penalties.
You want the best possible coverage in retirement.
You might skip it if:
You’re still working past 65 with FEHB coverage.
You have an FEHB plan that fully meets your needs (rare).
You’re okay with higher out-of-pocket costs if something happens.
Want to make sure you’re making the right decision?
[Download my free guide here] and get a step-by-step breakdown of what’s best for you.
What’s Next? (And Why You Should Stick Around for the Next Issue)
You now know whether Medicare Part B is right for you.
But there’s one last piece of the puzzle:
How does Medicare work with your FEHB plan choice?
Are you in the best FEHB plan for your situation?
Could switching to a different FEHB plan save you even more money?
That’s exactly what we’ll cover in the next issue:
Choosing the Right FEHB Plan in Retirement—What Most Retirees Get Wrong"
You won’t want to miss this one. Make sure you’re subscribed.
[Sign up for my weekly newsletter here]
Final Thoughts (Let’s Wrap This Up)
This decision matters more than you think.
Get it right? You’ll have lower medical costs, better coverage, and peace of mind. Get it wrong? You could end up overpaying or facing costly penalties.
That’s why I created my free guide—to help federal retirees navigate these decisions with confidence.
[Click here to get your copy now]
And if this helped you, share it so other federal employees don’t make costly mistakes.
Talk soon,
Jeff
