Coming off Employer Coverage? Here’s What You Can Do

Making the Switch to Medicare From Employer Coverage

When you choose group health coverage through your employer, you typically only have a few options, if any. So when you switch to Medicare from your employer coverage, it can be difficult to choose a plan. You have hundreds of available options. Whether you’re working past age 65 or covered by retiree health benefits, our advisors will help you learn about and enroll in Medicare.

Here’s what you need to know about coming off employer coverage, whether or not you plan to retire soon.

How Many People Work for Your Company?

The way employer coverage works with Medicare varies based on the size of your company. How many people work for your employer (current or former) who provides your benefits?

If Your Organization Has 20+ Employees

If your employer has 20 or more employees, you are not required to sign up for Original Medicare when you turn 65. Remember, if you do not sign up for Original Medicare at this point, you’ll need to delay, or defer, your Medicare Part B coverage.

However, if you do sign up for Medicare, you can pair it with your existing employer coverage. In that case, the employer benefits act as your primary insurance, and Medicare is your secondary insurance.

If Your Organization Has Fewer Than 20 Employees

If your organization has fewer than 20 employees, you must sign up for Original Medicare when you turn 65, even if you plan to continue working. At that point, Medicare is your primary insurance.

When you sign up for Medicare Parts A and B, you also need to confirm that your prescription drug coverage through your employer is creditable. If it’s not, you will also need to enroll in a Medicare prescription drug plan. You may also choose to sign up for a Medicare Advantage or Supplement plan for additional coverage.

Working Past Age 65? Here’s What You Need to Know

If you are working past age 65, you have options when it comes to your health care. You can choose to stay on your employer coverage, either as a primary or secondary (depending on your employer size). You can also enroll in a Medicare plan that works for your needs.

Should you choose to stay on employer coverage, you may need to take steps to defer Medicare Part A and Part B and ensure you aren’t charged any late enrollment fees. Our advisors can help with that!

You can also defer your employer coverage and enroll in a Medicare plan. Your working status does not impact your eligibility for Medicare. With so many plan options out there, you can easily find coverage that works for your needs. Medicare may even be more cost-effective than your employer coverage.

Medicare Advice in Dayton & Cincinnati

If you have questions about your unique situation, you can ask our local advisors. We can help with making the switch to Medicare from employer coverage, finding the right health plan, and more. To learn more, schedule a call!

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