In most cases, you will become eligible for Medicare coverage when you turn 65, even if you are still working and enrolled in your employer’s health plan. You are welcome to drop the employer coverage and have only Medicare if you so choose, but you are not required to do so.
Full Answer
Can I drop my employer health insurance for Medicare?
Even though you can drop your employer health insurance for Medicare, it may not be your best option. In most cases, older employers do better by keeping their existing company healthcare plans. Consider that keeping your employer insurance plan can mean maintaining the benefits that you and your dependents may need.
Can I drop marketplace coverage when I become eligible for employer's plan?
The only drawback is that there is a waiting period. If I enroll in marketplace coverage that starts February 1, can I drop that coverage when I become eligible for my employer’s plan? A. Yes, you can certainly do that.
What happens to your employer’s insurance when you switch to Medicare?
Your firm’s owners are free to become a small employer and leave their group pool. But they then have a legal obligation to provide their employer insurance to you as secondary coverage when you move onto Medicare.
What happens if you don’t have Medicare coverage?
Without creditable coverage during the time you’ve been Medicare-eligible, you’ll incur late enrollment penalties. When you leave your group health coverage, the insurance carrier will mail you a creditable coverage letter. You’ll need to show this letter to Medicare to protect yourself from late penalties.
What happens if you leave Medicare without a creditable coverage letter?
Without creditable coverage during the time you’ve been Medicare-eligible, you’ll incur late enrollment penalties. When you leave your group health coverage, the insurance carrier will mail you a creditable coverage letter. You’ll need to show this letter to Medicare to protect yourself from late penalties.
What Happens to My Medicare if I Go Back to Work?
Often, you might retire and later go back to work. If you pause your retirement and your large employer offers you group insurance, you can cancel Part B. When you retire again; you can enroll back into Part B with no penalties.
Does Medicare Work With Health Savings Accounts?
When enrolled in any Medicare parts, you CANNOT contribute to a Health Savings Account (HSA). Your employer also can’t contribute to your HSA once your Medicare is active. If you continue to add to your HSA, you could face tax penalties.
What Forms Do I Need to Show Creditable Coverage From an Employer?
You will need your employer to fill out the CMS-L564 form . This form is a request for employment information form. Once the employer completes section B of the form, you can send in the document with your application to enroll in Medicare.
What determines if you are a primary or secondary employer for Medicare?
The size of your employer will determine how your Medicare benefits will coordinate with your employer coverage. If you’re aging into Medicare while working for an employer with over 20 employees, your group plan is primary and Medicare secondary.
How many employees are eligible for creditable insurance?
For your outpatient and medication insurance, a plan from an employer with over 20 employees is creditable coverage. This safeguards you from having to pay late enrollment penalties for Part B and Part D, respectively.
What happens if you don't have Part B insurance?
If you don’t, your employer’s group plan can refuse to pay your claims. Your insurance might cover claims even if you don’t have Part B, but we always recommend enrolling in Part B. Your carrier can change that at any time, with no warning, leaving you responsible for outpatient costs.
When can I claim my own retirement benefits?
Your own retirement benefits, by contrast, can be claimed as early as age 62 , but will grow in value by 7 to 8 percent a year for each year you delay claiming them until you turn 70, when they reach their maximum value. I would begin by figuring out the values of these two benefits at different claiming ages.
Can my husband apply for Social Security if he has two Social Security benefits?
What this means is that if he applied for a spousal benefit based on your earnings record, he must also simultaneously apply for his own retirement benefit (and vice versa). He wouldn’t receive both benefits but an amount roughly equal to the greater of the two.
Can employers subsidize Medicare?
Last but hardly least, it is illegal for employers to subsidize Medicare premiums. Keep in mind that you will be paying your Medigap premiums with after-tax dollars. By my reasoning, your employer thus should add your new employer-plan premiums to your pre-tax salary and then give you an additional raise that would produce enough post-tax income ...
Is it illegal to subsidize Medicare?
Last but hardly least, it is illegal for employers to subsidize Medicare premiums. Doing so is viewed by Medicare as potentially being a “bribe” to convince the employee to drop employer insurance in favor of Medicare, thus saving the employer money and shifting costs to Medicare and, by extension, taxpayers. Hmmm.
Do you get a survivor benefit if you die before your spouse?
And because you are the higher earner, should you die before him, he would receive a survivor benefit equal to your benefit for the rest of his life. I urge a couple’s higher earner to maximize their Social Security benefits and thus provide the family’s highest possible benefit to the surviving spouse.
Can you defer Social Security benefits?
Of course, deferring benefits means he would not be receiving Social Security benefits during those years. But with people routinely living into their 80s and 90s, deferring benefits may be the best way for most people to make sure they don’t outlive their money.
Can you file for Social Security without triggering your own retirement?
Phil Moeller: Unlike other claiming situations, survivor benefits do not trigger Social Security’s “deeming” rules. This means you can file for a survivor benefit without also triggering a claim for your own retirement benefits at the same time. Alternatively, you can file for retirement without triggering your survivor claim. Because of this, it’s important for you to learn how your survivor benefits will compare with your own retirement benefits.
When Can I Enroll in Medicare Part B if I have Employer’s Insurance?
There are two main times when you can enroll in part B when you are over 65 and covered by your employer’s insurance:
What is the phone number for Medicare?
If you have an urgent matter or need enrollment assistance, call us at 800-930-7956. By submitting your question here, you agree that a licensed sales representative may respond to you about Medicare Advantage, Prescription Drug, and Medicare Supplement Insurance plans.
Can seniors over 65 delay Medicare?
Senior65 generally recommends those over 65 delay enrolling in Medicare Part B if they are offered coverage through work (including spouse’s work). We all want to stay clear of paying Medicare late-enrollment penalties while avoiding gaps in coverage. This is where Senior65 comes in to make sense of it all.
Does Senior65 sell your information?
Senior65 believes in your privacy. We will not sell your personal information. This is a solicitation for insurance.
Does Medicare Part B start at the same time?
That way you can time it that when your work coverage ends, your Medicare Part B (and any supplemental or drug coverage you may purchase) all start at the same time. You should not have a gap when your work coverage has ended but your Medicare has yet to begin.
When does Medicare enrollment end?
For most people, the Initial Enrollment Period starts 3 months before their 65th birthday and ends 3 months after their 65th birthday.
When does Medicare pay late enrollment penalty?
If you enroll in Medicare after your Initial Enrollment Period ends, you may have to pay a Part B late enrollment penalty for as long as you have Medicare. In addition, you can enroll in Medicare Part B (and Part A if you have to pay a premium for it) only during the Medicare general enrollment period (from January 1 to March 31 each year).
Can you end Medicare coverage for a spouse?
If someone gets Medicare but the rest of the people on the application want to keep their Marketplace coverage, you can end coverage for just some people on the Marketplace plan, like a spouse or dependents.
How long does Medicare coverage last?
This special period lasts for eight months after the first month you go without your employer’s health insurance. Many people avoid having a coverage gap by signing up for Medicare the month before your employer’s health insurance coverage ends.
What is a small group health plan?
Since your employer has less than 20 employees, Medicare calls this employer health insurance coverage a small group health plan. If your employer’s insurance covers more than 20 employees, Medicare will pay secondary and call your work-related coverage a Group Health Plan (GHP).
Does Medicare pay second to employer?
Your health insurance through your employer will pay second and cover either some or all of the costs left over. If Medicare pays secondary to your insurance through your employer, your employer’s insurance pays first. Medicare covers any remaining costs. Depending on your employer’s size, Medicare will work with your employer’s health insurance ...
Is Medicare the primary or secondary payer?
The first thing you want to think about is whether Medicare will be the primary or secondary payer to your current insurance through your employer. If Medicare is primary, it means that Medicare will pay any health expenses first. Your health insurance through your employer will pay second and cover either some or all of the costs left over. If Medicare pays secondary to your insurance through your employer, your employer’s insurance pays first. Medicare covers any remaining costs.
Does Medicare cover health insurance?
Medicare covers any remaining costs. Depending on your employer’s size, Medicare will work with your employer’s health insurance coverage in different ways. If your company has 20 employees or less and you’re over 65, Medicare will pay primary. Since your employer has less than 20 employees, Medicare calls this employer health insurance coverage ...
Can an employer refuse to pay Medicare?
The first problem is that your employer can legally refuse to make any health-related medical payments until Medicare pays first. If you delay coverage and your employer’s health insurance pays primary when it was supposed to be secondary and pick up any leftover costs, it could recoup payments.
What is the lowest cost Medicare plan?
Phil Moeller: If your health is good, your lowest-cost Medicare solution would be a zero-premiums Medicare Advantage plan. You most likely would have to continue to pay that monthly premium, which is for Part B coverage. Part B doesn’t cover all your needs. But a zero-premium Medicare Advantage health maintenance organization (HMO) plan with a bundled-in Part D drug plan (normally abbreviated as an MA-PD plan) would protect you from catastrophic health and drug expenses. Of course, you’d need to be comfortable with using the doctors, hospitals and other health care providers in the plan’s network. You don’t say if you also are eligible for Social Security benefits, but if you qualify for premium-free Part A Medicare coverage (which I assume you do if your only current Medicare payment is for Part B), then you might explore whether you could earn some extra income from Social Security. As you might know, your British pension might reduce your Social Security income due to Social Security’s Windfall Elimination Provision. The United States and the United Kingdom have what’s called a totalization agreement that might affect your WEP reductions in Social Security. Here’s an online tool you can use to find out more.
How often do you have to pay Medicare premiums?
As for your Medicare premiums, you will need to pay them directly to Medicare every three months. You can sign up for a program that will deduct these payments from your bank account. Robert – N.Y.: I have employer-provided health insurance.
Does turning 65 require you to take Medicare?
By law, employer group health insurance plans must continue to cover you at any age so long as you continue working. Turning 65 would not force you to take Medicare so long as you’re still working.
Can you collect Social Security if you have polio?
As for your childhood polio, this condition might have entitled you to earlier Social Security Disability benefits, but it will not be the basis of any benefits now since you have been retired for several years. Besides, these benefits would not increase the amount of money you might be due from Social Security. If your pension is your only source of income, you should explore whether you’re eligible for low-income assistance programs. You could call a counselor for the State Health Insurance Assistance Program (SHIP). There are broader old-age programs that you also could explore. A good source here would be the Arizona affiliate of the National Association of Area Agencies on Aging. Good luck to you.
Does FEHB have to pay Medicare?
Your retiree coverage should continue to pay primary and you might not even need Medicare. Check with your benefits folks on this.