Fedweek

During a separate open season that runs through December 15, Medicare enrollees can change coverage in that program, choosing among the coverage options offered in that program, including the traditional fee-for-service type coverage called Original Medicare and various HMO-type alternatives offered through Medicare Advantage (or Part C). Most federal retirees elect to have Medicare, which primarily covers non-hospital costs, even though they typically also have FEHB coverage in retirement because there are certain gaps in each that the other covers; for those with both, FEHB acts effectively as a “Medigap” plan, stepping in as the second payer for costs not covered by Original Medicare. For 2015, the monthly Part B premium—which is the basic cost regardless of whether they are in the traditional fee for service design or one of the many alternatives–will remain $104.90 for most enrollees. Those with annual taxable incomes above $85,000 for single filers and $170,000 for joint filers pay higher premiums on a phased basis, starting at an additional $42 a month. The Part B annual deductible will remain $147. Medicare Part A, which primarily covers hospitalization-related costs, requires a premium only for enrollees who did not have at least 40 calendar quarters of covered employment. For most, the main costs of interest is the hospitalization deductible, which will rise $44 to $1,260 for the first 60 days and proportionately at lower levels for longer periods.