The Foreign Service Journal, July-August 2016

STAY INFORMED. STAY CONNECTED. 88 JULY-AUGUST 2016 | THE FOREIGN SERVICE JOURNAL exceptions, only good in the U.S., so it may not work well for those who retire overseas. In addition, if your doctor does not participate in Medi- care (an “opt out” or “private contract” provider), Medicare will not pay for the services. Per federal regulation, your FEHB plan will be capped at 20 percent of the approved Medicare charge, leaving you with a huge out-of-pocket Part B or Not Part B? That Is the Medicare Question This is one of the most critical decisions you’ll make in retire- ment, with long-term impli- cations for both your health and your pocketbook. So on May 12, AFSA brought back Paula Jakub of the American Foreign Service Protective Association, for an encore of her popular seminar: “Medi- care and the FEHB–Putting It Together.” With almost 100 attend- ees, the house was packed. Beginning with a brief review of Medicare as a whole, Ms. Jakub explained that, for most, Medicare Part A (hos- pitalization) is a no-brainer, because it is premium-free for almost everyone. Most people sign up for it as soon as they reach 65, even if still actively employed. And the drug coverage is so good in most Federal Employees Health Benefits plans that few federal retirees apply for Medicare Part D. So what about Medicare Part B, which covers provid- ers (e.g., doctors, outpatient services, radiology, etc.) and for which you must pay a pre- mium?Well, it’s complicated. Taking attendees through a series of informative slides, Ms. Jakub advised that in 2016, Part B will cost a new applicant at least $121 per month, more if Modified Adjusted Gross Income exceeds $85,000 (single) or $170,000 (joint return).While many private-sector insurers require policy holders to sign up for Medicare Part B at age 65, federal annuitants have a choice. If you enroll in Part B as an annuitant, Medicare becomes your primary insurance and your FEHB policy becomes your secondary insurance. For example, Medicare pays 80 percent of the Medicare- approved amounts for physi- cians/providers who accept assignment of benefits, leav- ing your FEHB policy to cover the remaining 20 percent. That often leaves retirees with no outstanding balance. Also, Medicare and your FEHB plan seamlessly coor- dinate payment (“electronic crossover”), virtually sparing you paperwork, another ben- efit for retirees. For providers who participate in Medicare but don’t accept assignment, Medicare still pays its portion (although your out-of-pocket expenses may be higher), and payments are still coordi- nated, sparing you paperwork. So why might you choose not to take Medicare Part B? First Ms. Jakub reminded the audience that Medicare Part B coverage is, with rare cost—far more than if you had never signed up for Part B. So make sure key doctors and providers participate in Medicare before you decide whether to take Part B. To do more research on Medicare and your choices, watch the seminar online at www.afsa.org/video, or visit the Medicare website at www. Medicare.gov. Remember; AFSA and AFSPA cannot provide defini- tive advice to you regarding your choices or entitlements. For other assistance, AFSA is just an email away at retiree@ afsa.org. n —Todd Thurwachter, Retiree Counselor Paula Jakub spoke to almost 100 AFSA Members, mostly retirees, about their Medicare choices AFSA/GEMMADVORAK Women’s Political Caucus Honors Marguerite Cooper On May 16, the National Women’s Political Caucus honored Marguerite Coo- per with their first lifetime achievement award. Ms. Cooper, a retired For- eign Service officer and cur- rent AFSA member, received the award from NWPC Vice- President for Membership Sherrill Mulhern. When Ms. Cooper joined the Foreign Service in 1956, fewer than 5 percent of FSOs were female. On her first posting, to Tel Aviv, she was prevented from undertaking some aspects of the job that her supervisor considered “not women’s work.” In 1970, Ms. Cooper helped to found the Wom- en’s Action Organization, which helped pioneer efforts

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