Do I Need A Medigap Plan When I Have FEHB?
Federal employees get a wide range of health benefits for their terms of service. These benefits often exceed most people get from their employer. The benefits continue when the employees retire, which can break the bank of the government eventually. For someone who does retire, he may wonder if he needs a Medigap plan.
Employees of the federal government qualify for FEHB, or the Federal Employee Health Benefits program. When an employee retires or he reaches the age of 65, he also qualifies for Medicare. A person in this situation needs to know whether or not he needs to purchase a Medicare Supplement Insurance policy.
FEHB Takes the Role of a Medigap Policy
Although the Federal Employee Health Benefit plan does not cover the same things that a Medicare supplement policy will, it does become the secondary payer when a retired employee of the federal government qualifies for Medicare. Because it assumes a secondary role, a person with this program does not need to have a Medigap plan.
In fact, a person in this situation cannot buy a Medigap plan even if he wanted to. Insurance companies are not allowed to sell Medicare supplemental insurance policies to people who have coverage to people with Advantage Plans, dual eligibility for Medicaid, and an insurance policy that assumes the same role as a Medigap plan.
When Can I Purchase a Medigap Plan Then?
A person can only purchase a Medigap plan if for any reason he should lose or cancel the coverage he has under the Federal Health Employments Benefit program. Because most people do not find themselves in this situation, they will never have to buy a Medigap policy. They will also have greater coverage than many of the standardized policies that private insurance companies sell. FEHB stays with a person throughout most of his life, as long as he retires from his position in good standing.