The Foreign Service Journal, April 2019

50 APRIL 2019 | THE FOREIGN SERVICE JOURNAL STAY INFORMED. STAY CONNECTED. Change Your Health Plan? Members Weigh In There was a lot of talk dur- ing the last open season on whether or not to change your Federal Employee Health Benefits (FEHB) plan. Financial and retirement advisers often exhort us to review our health plans, but few of us relish the pro- cess. However, some of the members of the AFSA Online Community have done their research, and we asked them for their input. Here is what we learned: One member with a seri- ous autoimmune disease warns that if you are taking expensive specialty medica- tion that is covered by your present plan, you should be careful about changing plans. His prescription medi- cations are expensive, he writes, and insurance com- panies typically force the patient to take less-expen- sive medications before approving the specialty medication. This is some- thing the insurance compa- nies call “step therapy” but critics call “fail first.” This member considered changing to the Foreign Service Benefit Plan (FSBP) because it was less expen- sive than Blue Cross Blue Shield (BCBS), but changed his mind when he discov- ered that FSBP would not automatically allow him to remain on his specialty med- ication, and that he would have to again prove that the less expensive medications don’t work for him. Another member tells us why a high-deductible plan works for his family, although it might only be right for careful planners. He writes: “I’ve been through several health care provid- ers within FEHB but have been happiest—particularly overseas, where local pro- viders often cost less—with the Government Employees Health Association (GEHA) High Deductible plan for family.” It is not for everyone, he notes, because while cata- strophic or more expensive issues are covered, many common health care costs come straight out of pocket. In that sense, he explains, it operates much more like car or home insurance, but with one huge benefit: you can invest part of the premium and add a separate amount in a Health Care IRA. For those interested in crunching numbers, this member recommends first reading what others have done. He likes the Bogle- heads forum, named after the recently deceased founder of Vanguard, John Bogle, who was famous for creating the low-cost index fund, and he pointed our members to one example of a typical exchange at www. bogleheads.org/forum/ viewtopic.php?t=264554. Finally, quite a few members reminded us of the value of staying put. One member writes: “We retained our FEHB plan. FEHB worked effectively and had dealt with our pre-existing conditions to our maximum benefit. As a result, we did not want to play with our success in hopes of making marginal, if any, improvements.” Thanks to our members for sharing their experiences and knowledge on this complex subject. If other members have insights to share, please contact AFSA Retirement Benefits Coun- selor Dolores M. Brown at brown@afsa.org. The next FEHB open sea- son will start in late 2019, at which time AFSA will provide access to Checkbook’s Guide to Health Plans , which compares and contrasts all FEHB plans in a digestible manner. n If you are taking expensive specialty medication that is covered by your present plan, be careful about changing plans. NEWS BRIEF PLANN I NG FOR RET I REMENT On Feb. 5, AFSA hosted a webinar featuring Retiree Vice President John Naland,“Reviewing Your Retirement Plan.” About 80 retirees from around the world regis- tered and joined the webinar. During the webinar, participants were able to submit their questions on a wide range of issues including social security, updating the designated beneficiary for FEGLI, survivor benefits, considerations around long-term care insurance and TSP withdrawals. Participants also sought additional clarification on the decision of when and if to enroll in Medicare Part B. For those who missed it, a recording of the dis- cussion is available at www.afsa.org/video. n