When Your Retirees Switch to Medicare, They Should Know This

Employers: Help Your Retirees Make the Switch to Medicare

When employers offer group health plan benefits to their employees, they typically only offer a few options to choose from (if any). So when those employees retire or switch to Medicare, they sometimes find it overwhelming to choose coverage from the hundreds of available plans.

Whether you have Medicare-eligible employees or retirees that are still covered by your organization’s benefits, our local advisors are here to help. You can refer your workers to us for Medicare advice at no cost.

Here’s what your employees need to know about coming off employer coverage, regardless of their retirement plans.

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 organization?

If Your Organization Has 20+ Employees

If an organization employs 20 or more people, its employees do not have to sign up for Original Medicare when they turn 65.

Should they go this route, your workers will need to delay (defer) their Medicare Part B coverage. Otherwise, they could be subject to late enrollment penalties.

However, they can still choose to sign up for Medicare during the year they turn 65. Your organization’s group coverage can be paired with Medicare. In that case, the employer benefits act as their primary insurer, and Medicare is their secondary insurer.

If Your Organization Has Fewer Than 20 Employees

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

You may also want to confirm for your workers whether your prescription drug coverage is creditable to Medicare. If not, they will also need to enroll in a Medicare prescription drug plan. They can also choose to purchase a Medicare Advantage or Supplement plan for additional coverage.

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

If your employees are working past age 65, they have options when it comes to health coverage. They can choose to stay on your employer’s group plan, either as a primary or secondary (depending on your organization size). They can also enroll in a Medicare plan that works for their needs.

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

Retirees and workers over age 65 can also defer their employer coverage and enroll in a Medicare plan. Someone’s working status does not impact their Medicare eligibility. Medicare may even be more cost-effective than employer coverage.

We Make It Easy to Switch to Medicare

If your retirees or workers have questions about their unique situation, they can ask our local Medicare advisor team. We can help with making the switch to Medicare from employer coverage, finding the right plan, and more. To learn more, schedule a call!

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