If you are currently insured by your employer, you may be wondering how your employer-based coverage will interact with your future Medicare benefits. While it is possible to hold your employer’s policy and Medicare coverage simultaneously, many people choose to abstain from enrolling in Medicare until later in life. Keep reading to find out your options for enrolling in Medicare while you have employer coverage.
Rules For Medicare Enrollment and Employer Coverage
If you wish to maintain your employer coverage, you have different options depending on your age. If you will turn 65 soon and are not receiving social security or railroad retirement benefits, you will need to apply for Part A and Part B. You can wait to apply but may incur late enrollment penalties if your employer is too small.
If you are above age 65, you won’t need to apply until you retire or lose your employer coverage. You may still have late enrollment penalties attached, depending on the size of your employer. The same applies to individuals with disabilities.
Differences Based On Employer Size
The size of your employer will determine whether you will be able to delay Part A and B coverage without paying a penalty later in life. For employees of companies with 20 employees or less, it is ideal to enroll in Medicare immediately. For employees of companies that have more than 20 employees, the best thing to do is contact your employer’s benefits manager. They will tell you whether it is a good idea to delay enrollment. Individuals who are eligible for premium-free Part A may be better off enrolling immediately after they become eligible for Medicare. If you have qualifying coverage and enroll late, you will likely not be required to pay the late enrollment penalty.
What To Do When Employer Coverage Ends
When your employer coverage ends, you have three options. They are:
- Apply for COBRA coverage, which will continue your health insurance through your former employer’s plan at your expense.
- Sign up for Part B. If you sign up within 8 months of your employment coverage ending, you will likely be able to sign up without a penalty. If you miss this 8 month period, you may have to pay the penalty and wait until the next enrollment period starts.
- If you have COBRA coverage, enrolling in Medicare will end that coverage. Although, if you become eligible for COBRA while already enrolled in Medicare, you are legally allowed to take COBRA coverage. If you do take COBRA while enrolled in Medicare, your COBRA coverage will be secondary.
Do You Need Medicare With Your Employer Coverage?
If you currently hold an employer-based insurance policy and are considering your future options for Medicare, you can get help finding the information you need. Contact the experts at The Fussell Group Insurance Advisors to get assistance with the Medicare enrollment process.