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Health insurance costs after retirement ? Ask The Experts – Federal …

October 23, 2012

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The line above was changed to allow for linking the author’s name to a profile popup, using the Author Exposed plugin David Lindsey 09 / 30 / 08 dlindsey@atpco.com –>

Q. If I take the $15,000 retirement incentive being offered now, (I have 25 years under FERS, am a Postal Service employee, and am 64 years old), will my Blue Cross premiums go up? If so, by how much? I now pay $81.68 a month.

Also, if I decide to get married, my family option now would be $203.61 a month. How much would these premiums be if I take the retirement incentive? I must make the decision by Dec. 3.

Is the FERS pension amount taxed? If so, is it taxed by income and Federal Insurance Contributions Act? My gross pension amount is $1,288 a month. How much, approximately, would be left over after taxes and health care subtractions?

A. The easiest way to compare the cost of your Blue Cross/Blue Shield Standard premiums is to show you the difference between what Postal Service and non-Postal Service employees will be paying in 2013.

A Postal Service employee would pay $64.71 every two weeks for self-only coverage and $152.92 for self and family. A non-Postal Service employee would pay $85.71 for self-only and $200.14 for self and family.

When a Postal Service employee retires, his health benefits premiums are the same as those for all other non-Postal Service employees and retirees. And they are paid on a monthly, rather than a biweekly basis. In 2013, the BC/BS monthly rate for retirees will be $186.14 (self-only) and $438.63 (self and family). To find out how your annuity would be taxed, go to http://www.irs.gov/pub/irs-pdf/p721.pdf, and read the Internal Revenue Service?s Tax Guide to U.S. Civil Service Retirement Benefits.

Tags: annuity, Blue Cross/Blue Shield, FERS, FICA, HEALTH INSURANCE, IRS, Postal Service, RETIREMENT, self and family, self only plan, taxes

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Source: http://blogs.federaltimes.com/federal-retirement/2012/10/22/health-insurance-costs-after-retirement/

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