EMPLOYER COVERAGE

Most employers offer health insurance to their employees.  However, employees still have the right to enroll in Medicare Insurance while you are still working, once they are eligible.  In many cases enrolling in Medicare is a substantial savings for most people.  It is very important to know what you are paying each month in deductions for your health plan at work so you can accurately and fairly compare the costs and benefits to all of your options with Medicare Insurance.  

Summary: If you’re eligible for Medicare, and you also have employer-sponsored health coverage, you might be able to keep both. But since Medicare Part B comes with a monthly premium, you might want to delay enrollment in Part B. You may want to ask your plan benefits administrator how your coverage might overlap with Medicare.

You might have health insurance through your job or your-spouse’s job. When you become eligible for Medicare, it’s important to understand how Medicare works with other insurance plans, and how it compares to your existing coverage.

Of course, not all employer-sponsored coverage is the same, so it’s important to talk to your benefits administrator before deciding which health plan is right for you.

 

No, you do not have to do anything that you do not want to do.   But we believe everyone should enroll in Medicare Part A as soon as they turn 65. You can do this by simply contacting Social Security 3 months before your 65th Birthday.  Why should everyone do this? Well, Part A of Medicare is typically free, so there is nothing to pay for.  Second, Medicare can be the Primary or Secondary payer for any Hospital stays you might incur. And, finally because when it is time for you to eventually enroll in Part B it is a much more streamlined and faster process because you already would have your Medicare number and they already have you in the SSA/Medicare database.

Medicare considers the Employer Coverage of a Small Company (Less than 20 Employees) to be not credible coverage. For this reason alone, it is worth enrolling into Medicare and getting a Medicare Advantage, plan, Original Medicare or Original Medicare with a Medicare Supplement plan. And it never hurts to ask your employer to Reimburse you for your Medicare Part B Premium and Your Medicare Advantage or Medicare Supplement premium.  Remember, legally they cannot pay for your Medicare because it is your choice, however, they can increase your salary or reimburse you for your Medicare costs.

You might need to sign up for Medicare if you work for a small company with fewer than 20 employees. Once you turn 65, Medicare generally becomes the primary payer. You may still keep your employer-sponsored coverage, but it only pays after Medicare has paid its share. In this case, your employer-sponsored coverage is the secondary payer.

Medicare describes a large company as a business that employees over 100 people. Medicare considers employer sponsored Health Plans from large employers to be "Credible" insurance. If this is your case, you should compare what you are paying for through your payroll deductions for your healthcare with what you would be paying if you joined a Medicare plan that you feel fits your needs. The choice is up to you. Everyone should begin speaking with their HR representatives about options regarding Medicare vs. their Employer Sponsored Insurance.  You are not obligated to stay on an Employers Health Plan once you turn 65, no matter what anyone tells you. Many people do stay on their Employers plans, especially if the insurance is 100% paid for by the company. 

Once you decide to leave your Employer Coverage you will have 6 months to enroll in Medicare and choose a Medicare plan with no penalties. ,  that If you work for a large company, you may be able to postpone Medicare enrollment until after your employer-sponsored coverage ends. However, most people enroll in Part A as soon as they become eligible, since there is typically no Part A premium if you have qualifying work history.

You should contact the plan administrator of your employer-sponsored coverage to see if you need to enroll in Medicare.

 

Original Medicare (Part A and Part B) may cover medically necessary care to diagnose and treat illnesses and injuries. Part A typically covers your inpatient care in a hospital or skilled nursing facility. You pay a deductible for each benefit period. You typically pay a daily coinsurance amount for stays lasting more than 60 days.

Part B typically covers outpatient care such as doctor visits, preventive care, diagnostic tests, physical therapy, mental health treatment, and durable medical equipment such as wheelchairs and home oxygen. You pay an annual deductible and a 20% coinsurance amount in most cases.

Most people qualify for premium-free Part A but pay a monthly premium for Part B. Original Medicare generally doesn’t cover most prescription drugs you take at home. 

If you want coverage for most prescription medications, you may want to sign up If you want coverage for Prescription Drugs, you may want to enroll in a Medicare Prescription Drug Plan (Known as Medicare Part D.

You can choose a stand-alone Part D plan to go alongside Original Medicare or a Medicare Advantage plan with Part D prescription drug coverage.

 

Although all employer-sponsored plans are different, they typically cover both inpatient and outpatient care, as well as prescription drugs. The following chart shows the main differences between Original Medicare, Part A and Part B, and most employer health plans.

Medicare Employer-sponsored coverage 

Medicare Part A, which is the part of Medicare that you contribute to over your working career covers Hospitalization.  Most everyone who has worked for at least 10 years will receive Part A of Medicare free of charge.  If you need to pay for Part A, you could pay as much as $478 per month in 2021.

The cost for Medicare Part B (Medical Expenses) varies depending on whether you choose Original Medicare, join a Medicare Advantage Plan (Medicare Part C), or you might enroll in Original Medicare with a Medicare Supplement Policy. There is a monthly premium for Part B $170.10 that every Medicare Beneficiary must pay, regardless of what plan you chooses.  Additionally, Part B has an annual Medicare Part B Deductible that costs $233 in 2022.  

Out-patient visits 80% of allowable charges you could pay the remaining 20% by using co-payments, co-insurance, or in the case of a Medicare Supplement, your insurance company may cover all of the remaining balance.

Medicare Part D is the part of Medicare that covers Prescription medications. There is typically a flat rate monthly premium and then a possible combination of co-pays and/or co-insurance. 

Skilled nursing home care Up to 100 days for qualified stays; you pay $0 for first 20 days and $176 per day for days 21-100 in 2020; all costs for days 101 and beyond varies; many plans cover skilled nursing home care. You may pay a co-payment or coinsurance amount.

*Most people don’t pay a premium for Medicare Part A. You generally don’t have to pay a premium if you’ve worked at least 10 years while paying taxes.

 

If you have employer-sponsored coverage, you can generally delay your Medicare enrollment without incurring a late enrollment penalty. Once your employer-sponsored coverage ends, you typically have a special enrollment period when you can either enroll in Original Medicare (Part A and Part B) or a Medicare Advantage plan.

If you decide to stay with Original Medicare, you can also sign up for a stand-alone Medicare Part D Prescription Drug Plan at that time. You might not face a Medicare Part D late enrollment penalty, if:

• You sign up for the prescription drug plan during a Medicare special enrollment period. You might be able to do this within two months of losing your employer-sponsored coverage.
• Your employer-sponsored coverage had creditable prescription drug coverage. If your employer-sponsored coverage did not have creditable prescription drug coverage, you may pay a penalty.

There’s generally a similar-special enrollment period for Medicare Advantage plans.

 

If you decide to stay with Original Medicare (instead of a Medicare Advantage plan), you may generally buy a Medicare Supplement insurance plan.

There’s a Medicare Supplement Open Enrollment Period (OEP). This six-month period usually starts the month you’re enrolled in Medicare Part B, and you’re at least 65. During that time, you can generally buy any plan sold in your state and you cannot be turned down for pre-existing conditions.

If you don’t buy a Medicare Supplement insurance plan during your OEP, you may have to pass medical underwriting in order to buy a plan. If you have chronic or serious health conditions, you may not be able to buy Medicare Supplement coverage. If you think you will want a Medicare Supplement insurance plan, you may want to buy it when you are first eligible and have guaranteed-issue rights. Maternity/Maternity Leave Policy has endeared you to employees across the company. This is a good place to talk about that.