Federal retiree at age 58, can they drop Tricare and pick up again at age 65

[yorkriver1]

The retiree is talking to a CFP, one of my referral sources. If any of you have had someone with FEHB do you know if leaving the federal health system at retirement before age 65 would void their eligibility for FEHB Medicare related benefits? This is my main question, but not the only consideration.
One caution I also mentioned is that the currently generous tax credits on ACA coverage, what the retiree is thinking about, are only extended so far to 2025. Through the end of the 2025 coverage year, there is no maximum income limit for the premium tax credit. People whose benchmark premium costs more than 8.5% of household income qualify for a premium tax credit if they meet other eligibility criteria.
After 2 years depending on income, the retiree could be in trouble with hoped for tax credits.

 

[yorkriver1]

Sorry, I meant Federal Employee Health Benefits, not Tricare.

 

[Tkruger]

The first question that comes to mind is why would they want to drop FEHB for a market place plan?

 

[Tkruger]

Secondly, since FEHB are available to the consumer, they wouldn't qualify for a APTC. I'd just leave the coverage alone.

 

[yorkriver1]

The first question that comes to mind is why would they want to drop FEHB for a market place plan?

Thanks for responding---
Yep, probably the lure of "getting a better deal" would be why the interest in HC. gov. Just telling them they wouldn't qualify for a tax credit would take care of that aspect, but If someone asked me, I would tell them to double check with FEHB prior to dropping/not enrolling in it. Just asking here, in case any of you know that answer.
I do still want to know if they did drop the coverage could they get it at 65. If they got a job with benefits after retiring in their 50's I imagine FEHB would still be there for them at 65.
Definitely not interested in trying to get the client, just helping my CFP contact who is new to the business, who can send me T65's and near T65's who don't have employer based coverage after they retire.
I ask these questions because I am super cautious about people dropping coverage that we have to ask about on every Medicare Part D or MAPD app to paraphrase: "dropping union or employer coverage could be a permanent decision if enrolling in this plan".

 

[bluediamond]

Thanks for responding---
Yep, probably the lure of "getting a better deal" would be why the interest in HC. gov. Just telling them they wouldn't qualify for a tax credit would take care of that aspect, but If someone asked me, I would tell them to double check with FEHB prior to dropping/not enrolling in it. Just asking here, in case any of you know that answer.
I do still want to know if they did drop the coverage could they get it at 65. If they got a job with benefits after retiring in their 50's I imagine FEHB would still be there for them at 65.
Definitely not interested in trying to get the client, just helping my CFP contact who is new to the business, who can send me T65's and near T65's who don't have employer based coverage after they retire.
I ask these questions because I am super cautious about people dropping coverage that we have to ask about on every Medicare Part D or MAPD app to paraphrase: "dropping union or employer coverage could be a permanent decision if enrolling in this plan".

[EXTERNAL LINK] - If I have retiree coverage through the FEHB, do I need to enroll in Medicare? | medicareresources.org

If you cancel your FEHB coverage instead of suspending it, you'll never be able to re-enroll.

 

[Chazm]

I’ve never done it but I believe you can suspend it if they sign up with a MAPD but not a supp. This person is asking about an ACA and that won’t work.

Like mentioned earlier, ACA subsidies would not be available for this individual.