Retirement. A time we all dream about.Being able to stop working and move forward into a time of fun and relaxation. In this era, though, many people are choosing to continue to work. This makes sense to me, as the economy continues to suffer, and world events make us all concerned about our future, why not keep up on a job? I have even thought that continuing to work as long as I am capable might be a good future for me too. As time goes forward, we are learning so much about medicine that people are living into their 90’s. Retiring at 65 is almost too young for some people. This leaves to question when Medicare is truly right for some, as work provides medical care at times, and Medicare might actually cost more.
All people are eligible for Medicare at the age of 65. The window starts three months before turning 65, the month of their 65th birthday, and the three months after, to enroll in Medicare with all Medicare insurance plans available to them. With that being said, what do I do if I am continuing to work? Do I stay on my employer’s group plan? Or is it time for a Medicare insurance plan? Am I required to go onto Medicare? Let’s discuss.
- What do I do if I plan to continue to work? Consider staying on your employer’s group plan. You can elect to take part in Part A of Medicare and delay the Part B enrollment. This option is available to everyone. Regardless of whether you are required to go onto Medicare or not. I do recommend this myself, mostly, and depending on everyone’s special situation, yet especially the delay in signing up for part B.
- Do I stay on my employer’s group plan? Consider the costs of both Medicare and your group employer plan. Does my employer pay my entire premium? If so, Medicare will cost you at least $202.90 for Part B, and then there is usually some cost involved with a Medicare insurance plan and a drug plan (they might be combined as a Medicare Advantage plan, yet both coverages are needed). Therefore, an employer paying all costs would be better than going onto Medicare. Even a $70 pay-check insurance plan could be more cost-efficient.
This, of course, also depends on your coverage and how you feel about the actual cost of using your plan and having medical services. What are my costs there? Would Medicare provide more coverage for me?$70 a paycheck might be costing more, as coverage could be much less, leaving higher medical bills and prescription costs compared to Medicare. Much to think about here. 1. The cost of the insurance and 2. The coverage for the insurance, and 3. How much of the insurance do I use? 4.Then I must make a valid apples-to-apples comparison (as we call it – an equal comparison of the plan premium cost and then coverage).To determine the best option.
- Am I required to go onto Medicare? When working for a large employer (20 or more employees), you can typically delay enrollment, at least in part B, and it is highly recommended that you go onto part A.Part A is premium-free for most people (If you worked at least 10 years), and it can provide additional coverage to supplement the group health plan with your employer.
Small Employers (fewer than 20 employees) are required to sign up for Medicare as it is mandatory. Medicare becomes the primary payor, and the group employer plan becomes the secondary plan that covers the costs that Medicare cannot cover. This is a great way to have a Medicare Advantage-style plan, yet this might remove your opportunity to have a Medicare Supplement policy.
When going onto part B, a window opens that allows anyone to pick any insurance plan regardless of a person’s health conditions. When going onto part B, and electing to keep your work insurance, you might be giving up that opportunity. A Medicare Supplement policy might be out of reach in the future, when the insurance company starts asking health questions upon application, or when leaving the group health plan. Medicare Advantage might be the only option left when deciding to finally retire and come off the employer group plan. Medicare Advantage has its advantages and disadvantages; therefore, losing the opportunity to have a Medicare Supplement can be detrimental. More on that in my course on Medicare Supplements.
As this is all quite complicated, it is important that you also speak to an HR representative in that department to understand how your health insurance plan coordinates with Medicare. I find that some HR departments get confused themselves, in my opinion, and a local insurance agent might be able to explain more clearly when going in and asking about your Medicare insurance options outside of work. Just say you are shopping around. Of course, keep in mind that this agent will want you to sign up with them and leave your employer. We are supposed to be recommending options for you based on what is in your best interest, yet it’s sad to say not all agents do so. Or maybe they don’t take the time to fully understand the group insurance available to a Medicare-eligible recipient. Therefore, try your best to observe and listen with this bias and maybe limited knowledge of one side in mind.
When going onto Medicare, I was always extremely helpful when I was an Insurance Agent. A Medicare Specialist is what I am, and I find that an Agent is good to have during this transition. Someone to talk to and ask questions. The fear of Insurance Agents, though, has become quite real throughout time, and I feel at this point my courses and blog might be of great help during this time period, where you must figure out Medicare. Hence, they have been created, and this website was born.
Thank you for reading my blog today! Visit my Medicare courses and feel free to reach out at any time.
