A nice email came across my desk from a young woman who is a Federal employee and is getting married next June. She is so excited and we are excited for her. She told me that she was thinking about dropping her FEHB and FEGLI because her husband has coverage on his job with the Railroad. She stated that her husband-to-be had great coverage and they certainly did not need two plans for health coverage.
The young woman is right, they don’t need two health coverage plans. However, the right answer to her question requires a deeper dive. The Railroad has great coverage but that coverage only extends up to eligibility for Medicare. We all know by now that Medicare only covers about 80% of the cost of medical care and by some mechanism the additional 20% of your medical costs need to be covered. You can purchase a Medigap plan to fill the gap, but those plans can also be expensive. The decision that is eventually made in the young couple’s lives is ultimately theirs and theirs alone. But since she did write to me, I think it gives me a little leverage to give her some advice.
We live in a world today where the husband is not the gatherer and the wife is not the nest-builder. Husband and wife play the role of mutually responsible gatherer and nest-builder. That being said, if the wife has the better plan then there is where the health care protection should be and vice-a-versa. FEHB remains with the Federal worker for the rest of their lives all things being equal; thus, acts as the secondary coverage to Medicare upon reaching Medicare eligibility once retired. As long as you are an actively employed Federal worker, FEHB would be the primary in most cases.
That being said, both individuals could keep their own insurance each carrying the other on the policy. Insurance is never going to pay 200 percent, but the two insurances would certainly provide for any gaps in medical responsibility that might be left to the couple. On the other hand, it is important to remember that FEHB will act as a Medigap filler for Medicare during retirement. The Railroad no longer covers its employees when they become eligible for Medicare. Things to consider before allowing upcoming nuptials to cloud good decision making that will keep you blissful for many years to come.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
