So, you are turning 65 or you are eligible for Medicare, and you are covered through your current employer’s group insurance, or through your spouse through their current employer’s group insurance. But now you are considering if you should get Medicare Part B. What should you do? How do you know?
One quick note, which I will repeat a couple times here is, if the employer has 20 or fewer emploees, then you should strongly consider getting Part B as soon as you are eligible for Medicare. But, if the employer has more than 20 eligible employees, then there are additional options when it comes to enrolling into Part B.
*** I have included links to Medicare’s website, that address some of the common questions that people have, when it comes to enrolling in Part B.
Keep in mind, this is for those who are employed by employers with 20 or more employees.
- If the employer has less than 20 employees, then may not want to delay Part B, as you could be subject to a “Late Enrollment Penalty“
When should you enroll in Part B, after you decided to wait, due to coverage from a group health plan offerred to active employees (20 or more employees) through yourself or your spouse?
- IF you are covered by a group health plan, due to the current employment of you or your spouse, then you may apply for Part B at anytime, WHILE covered under that current employee plan.
- IF that group plan ends, then there is a special enrollment period into Part B that runs for 8 months following the last month of that coverage.
Why is this important to know?
Medicare Part B is not free for most people. There is a monthly cost for Medicare Part B. So, if you are covered under your employer plan, and they do not require you to have Part B (due to having 20 or more eligible employees, then it becomes a financial decision. You will want to consider the coverage you have from your employer, and decide if the added cost of Part B is of value to you.
There are situations when it makes sense to have Part B, while covered by an employer plan. For instance, is there a large deductible for care from doctors and out patient, which Medicare Part B would typically address? Under Medicare Part B, there is an annual Part B deductible, which is $183 in 2017. ALSO, when your employer has less than 20 eligible employees, which requires you to apply for Part A & Part B when initially eligible (the 7 month period around which you turn 65)
When you decide to retire, your employer may offer you COBRA. However, people assume that this allows them to continue delaying enrollment in Part B. Remember, upon losing group health coverage due to CURRENT EMPLOYMENT, you have only 8 months to apply for Part B.
“But they said I could have COBRA for 18 months!!!” That’s very likely. But, it does not change the 8 month period of time to apply for Part B.
Please know that losing coverage from an employer gives you a SPECIAL ELECTION PERIOD into a Medicare plan, such as Medicare Supplements Medicare Part D plans and Medicare Advantage plans. But you need to know, that time period is limited.
If you seek more information, or to desire to talk more about your situation, then please feel free to email me at [email protected]