Staying on the Job Past Medicare Eligibility
Medicare While Working
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A recent survey conducted by eHealth, the parent company of PlanPrescriber.com, found that 80 percent of Boomers expect to be working after their 65th birthday. Many will have health insurance through their employer. But this group must also consider how Medicare impacts their coverage and their choices. The same survey found that a substantial number of Boomers don't understand basic parts of how the Medicare program actually works. Certain parts of Medicare coverage are only guaranteed when you first become eligible for the program – even if you are working. When you turn 65 and continue to work, you have some decisions to make about employer coverage vs. Medicare. To help you avoid costly mistakes, I have compiled a list of five things to keep in mind. |
1. Understand the basics of how Original Medicare (Part A and Part B) works and be aware of some cost-sharing gaps.
2. How does your employer-based insurance work with Part A? Most of us are automatically enrolled in Medicare Part A when we turn 65, even if we have employer-based insurance.
3. How does your employer-based insurance work with Part B? Those with employer-based insurance can wait until they lose that insurance to enroll in Part B. Part B has a premium – most people pay a standard premium amount, which is $104.90 a month in 2013.
4. How do Part A and Part B work with COBRA? COBRA provides certain former employees and spouses the right to temporarily continue health coverage at group rates. But it’s expensive so people who qualify for Medicare often decline costly COBRA and switch to Medicare.
5. If you want to supplement your Medicare coverage, know the deadlines. There are a couple ways to help fill the “cost-sharing” gaps in Original Medicare, including Medicare Advantage and Medicare Supplement plans. People can enroll in Medicare Advantage (also called Medicare Part C plans) as an alternative to Original Medicare. These plans allow a person to receive their Part A and Part B benefits, as well as Part D in most cases, from a private insurance company through a single consolidated plan. While Medicare Advantage plans can and often do have some of the same cost-sharing (deductibles, copayments, and coinsurance) associated with Original Medicare, they cap your out-of-pocket expenses at $6,700 or less, depending on the plan.
Read more about Staying on the Job Past Medicare Eligibility Medicare While Working or give us a call at (800) 748-5538 to discuss California Senior benefits. Our friendly Senior Health Specialists are eager to hear from you!