Medicare vs. Employer Coverage - What You Need To Know!
Hi, I'm Jessica Manion at My Healthcare Direct, and in this video I'm going to be going over Medicare and employer coverage - how it works and what options you have if you continue to work past 65.
The biggest thing to know if you're turning 65 and you have group health coverage is the size of your employer, because that's going to help determine whether or not you go on just Medicare Part A, which is your hospitalization coverage, or if you're going to want to go on Medicare Part A and B.
20 or more employees
If your employer has 20 or more employees, your employer's insurance is going to be primary and Medicare is going to be secondary. Because of this most people tend to just enroll in Medicare Part A, which for most people will be free, and they delay their Part B and their Part D.
When it comes time to retire, most people qualify for what's called an SEP or a Special Election Period, where you then can enroll in Part B and Part D, and the best part is that for most people, you will not face that late enrollment penalty for Part B and Part D.
Less than 20 employees
If your employer has less than 20 employees, then the opposite is going to be true: Medicare is going to be your primary health insurance, and your employer's insurance will be secondary. Because of this, most people tend to enroll in both, Part A and Part B. There is a premium for Part B, so if you decided not to take your Part B and pay that 148.50 a month, what's going to happen is: Whenever you eventually do enroll in Part B and go on Medicare full-time, you will have that late enrollment penalty that you will have to pay.
So, if you're someone who's still continuing to work and you know that your company has less than 20 employees, you may want to consider enrolling in both Part A and Part B.
Any further questions?
If you have any other further questions about your employer coverage versus Medicare, feel free to give our office a call at 888-959-1028. You can also like us on Facebook.
It is entirely possible to be enrolled in both Medicare and the insurance you receive from your employer. This is an excellent option that can have lots of benefits. One policy may pick up where the other leaves off, giving you increased benefits and access to more coverage.
Special Enrollment Periods
If you’re still receiving employer coverage during your Initial Enrollment Period and decide to not enroll in Medicare yet, you may be granted a Special Enrollment Period. This would allow you to enroll in Medicare past your Initial Enrollment Period, without incurring any extra fees.