The responsibility of raising children can last a lifetime. Many parents still feel obligated to their children, including the need to provide for them financially, even as they get older. This still holds true even though those kids have grown up and have their own families, responsibilities, and lives.
The Cost of Care
What happens if your kids or other family members require your financial assistance after you’ve retired? A retired federal employee asked the following question.
Question: I am a widowed CSRS retiree and will turn 65 in late 2023. At that point, I’ll sign up for Medicare. My son, who is 22 years old, is a college student who wants to go on to graduate school and potentially beyond. I’m now enrolled in the Federal Employee Health Benefits program as a self-plus one.
I’m unsure what the best course of action would be to ensure that I have enough medical coverage once I turn 65 and up until my son ages out of FEHB at age 26. Any recommendations?
Reg Jones, a senior executive service founding member, responds to this question.
Reg’s Answer: When they become eligible for Medicare, most retirees continue with the FEHB plan they were enrolled in. That’s because the two together significantly lower their out-of-pocket medical expenses.
Some choose a less expensive FEHB option or plan because they believe it will cover most of their needs. Even fewer people choose to sign up for Medicare Part B because they believe the cost is not justified by the few additional advantages they will receive.
You should think about which FEHB plan or choice will best protect your kid and also protect you financially in the event of an unforeseen medical emergency since you want to ensure that he has adequate health insurance coverage. At the same time, he is still enrolled in your enrollment.
Any Open Season is appropriate for changing your choices or plans. However, you have a once-in-a-lifetime chance to change that under Qualified Life Event 2L, starting on the 30th day before becoming eligible for Medicare.
Further Breakdown of FEHB and Medicare for Kids
FEHB for Kids
Your spouse (including a legal common-law marriage) and children under 26 years old, including legally adopted children, stepchildren, and acknowledged natural (born out of wedlock) children, are family members who are eligible for coverage under a Self and Family enrollment.
They are included if your foster children reside with you as part of a typical parent-child relationship. Another qualified family member is a child aged 26 or older who cannot support themselves due to a mental or physical impairment before that age.
To evaluate whether the child is an eligible family member, the employing office will consider the child’s relationship to you as the enrollee.
Medicare Benefits for Kids
Medicare coverage is available in a few specific situations for children. According to Medicare, a “kid” or “child” is someone under 22 years old and unmarried. As long as they remain single and continue to meet the requirements, a child who has been approved for Medicare may continue to get coverage until they turn 26.
- A kid must have a parent or legal guardian who, in either scenario, has either accrued at least 6 Social Security work credits in the previous three years or is currently receiving Social Security retirement benefits.
- Children can be eligible for Medicare through birth, adoption, or stepparents. Stepparents must have been the child’s stepparent for at least a year to qualify.
- Children can also be eligible if their grandparents or step-grandparents serve as minors’ guardians.
- Only children with disabilities are eligible for children’s Medicare coverage. Even then, a child will only be qualified for coverage at certain times.
What Elements of Medicare Cover Children?
Different elements of Medicare can cover kids, depending on how they qualify. Any component of Medicare, except Medigap, is open to enrollment for children who meet the criteria for Medicare and who have a disability.
Only Medicare beneficiaries who are 65 years or older can purchase Medigap policies from most Medigap carriers. Some businesses, though, will market to beneficiaries who are younger. In fact, some states mandate that all Medicare participants, regardless of age, have access to Medigap coverage.
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Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families. Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation. Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.
Disclosure:
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