An effort under way in Congress to begin prescription drug coverage in the Medicare program, has raised the question of whether federal retirees who have both Medicare and Federal Employees Health Benefits program insurance will in effect end up paying twice for prescription drugs-once as part of their FEHB premiums (which do not reduce when Medicare coverage begins) and once as part of their Medicare premium. The large majority of federal retirees maintain FEHB coverage as annuitants and keep it even upon becoming eligible for Medicare at age 65. A main reason they keep FEHB is that FEHB covers prescription drugs while Medicare does not.
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