It is never too early to investigate what Medicare coverage will look like for you, especially if you are nearing Medicare eligibility and covered by your or your spouse’s employer’s health plan. Whether you will continue your current employment or retire, getting the facts from your employer is crucial. It is common for people to contact me often a year before they will be eligible for Medicare to learn what steps to take in preparation for Medicare. They want to get the facts before the facts get them.
This article will provide an overview of questions to ask your Human Resources department.
If you are not claiming your Social Security benefit when you are eligible for Medicare at age 65, you will need to apply for either Part A or both Part A and B. This differs for an under-age 65 disabled beneficiary who is automatically enrolled by Medicare when they qualify for coverage. Whether you apply for Medicare Part A or Part B, or both, will be based on the information your Human Resources department, or your plan administrator provides.
Contact your Human Resources department, your Union, Benefit or Health Plan Administrator to ask these basic questions:
Do I need to have Medicare Part A, (the hospital benefit)?
Your employer may recommend you apply for Part A when you are first eligible. Your initial enrollment period is three months before you turn age 65, your birth month, and the three months thereafter. If you have paid Medicare taxes for forty quarters or ten years, you qualify for a premium free Part A. Most apply in the three-month period before they turn sixty-five, and it is recommended. If you qualify for Medicare due to a disability and will be enrolled by Medicare, you will still want to be clear on what your options will be.
Do I need to have Medicare Part B, (the medical benefit)?
Based on your employer and the size of the company, you may not need to enroll in Medicare Part B. Many employers do not require enrollment in Medicare Part B, for their coverage supplants what Part B provides. If your employer does not require you enroll, you will save money. Part B is not premium free for most people. The standard 2022 Part B premium is $170.10 per month. and Medicare establishes the part B premium annually. You may also pay a higher premium based on your income. Your company may require you to have Part B and it is recommended you enroll in the three months before you turn sixty-five. If you are awarded Medicare under age 65 due to disability and your company does not require you to have Part B insurance, there are clear steps to take to contact Medicare and ask that your Part B coverage be terminated and then reapply for Part B when you leave your employment.
If I do not need Part B, when should I apply for it to avoid a penalty?
You may sign up for Part B at any time you are covered by your group plan, but you will pay the monthly premium). You should apply for Part B before leaving your company’s group plan, or during the eight-month period that starts the month after your employment ends or your plan’s coverage ends, whichever happens first. You will have a special enrollment period that will allow you to put new health insurance coverage in place.
Does the company have a plan for people at retirement?
Your employer may have such a plan in place, and you will want to have the details so that you can select the best coverage for yourself. With respect to how educated we may be as consumers, be sure to take notes, names and ask if there is a call reference number. Request that this information be emailed to you for further clarification. This is one time where if you are not fully understanding how your company works with its Medicare aged employees, keep probing until you are confident about your options.
Enroll in Medicare online by accessing https://socialsecurity.gov or by calling 1-800-772-1213 (TTY users dial 1 800 325 0778.)
Visit Medicare.gov’s website for more details and download the 2022 copy of Medicare and You, the official U.S. Government Medicare Handbook for a wealth of information. These simple steps will ensure a smooth transition into Medicare and avoid any surprises or penalties. Use the Chat feature to have a printed record of your questions, or dial Medicare at 1 800 633 4227 (TTY users dial 1 877 486 2048.) Medicare is open 24-hours a day, seven days a week.
Leah Sugar Kari specializes in showing Medicare eligible people their insurance options. Reach Leah for comments at (520) 484-3807 or email leah@leahkarisolutions.com. (TTY users dial 711.)
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