Eligibility for Medicare starts at the age of 65. Some people who are still actively working even after turning 65 may also have employer’s insurance. Due to this, you can have both Medicare and employer’s insurance after age 65. For these people, employer insurance and Medicare can work together to ensure that your healthcare costs and needs are covered.
It is always a good idea to talk to your HR department, benefits manager, or an experienced insurance company like Temmen Insurance, but read on to learn more about how employer insurance can work with Medicare.
How an Employer’s Insurance Work with Medicare
One type of insurance coverage is not supposed to replace the other; they can work in conjunction. Employer’s insurance can work together with your Medicare benefits to cover your medical needs and help pay for most medical expenses. The size of your company will determine how your employer’s insurance will coordinate with your Medicare coverage. It will also determine if your Medicare is a primary or secondary payer.
The primary payer means that Medicare covers the first insurance claims. On the other hand, secondary means Medicare pays for the insurance claims only after the company you are working for covers the initial claim. If the company you work for has less than 20 employees, Medicare will serve as your primary payer. However, Medicare will work as the secondary payer if your employer has 20 or more employees.
Delayed Enrollment into Original Medicare and Part D
What happens if you delay enrollment into Original Medicare and Part D because you are still actively working? Medicare beneficiaries that are still employed must pay for Part B benefits. You will have to pay a monthly premium on your Part B, and the amount you pay is also based on your salary.
Once you turn 65, you can decide to delay enrolling in Medicare Part B and not have to pay the penalty. If you were to retire or leave your job, your employer would provide proof of resignation, showing that you are no longer receiving the employer’s insurance health coverage. Moreover, you can also delay enrolling in Medicare Part D coverage. If the employer’s insurance covers prescription drugs, it is possible to avoid paying the penalty for enrolling late for Medicare Part D.
Choosing Medicare as the Primary Insurance
You also have another option if you are with a large employer’s group health insurance plan. You can decide to leave your employer’s insurance and select Medicare as your main insurance. Using Medicare as your primary insurance can be cheaper for you. It will also eliminate doctor copays and reduce your deductible.
If you need more help understanding employer insurance and Medicare coverage, Temmen Insurance can help. Our insurance experts can walk you through all of this and offer the best recommendation based on your medical needs and budget.