If you’re 65 years old and still working, you may wonder if enrolling in Medicare is the right choice. With Medicare being a complex topic, it can be challenging to understand how it works alongside existing employer coverage. The truth is, you have more than one option regarding your coverage. It simply depends on a combination of your circumstances and preferences.
If your company employs more than 20 people and your prescription drug coverage is considered “creditable”, you may not need to sign up for Medicare while you are still working. Oftentimes, employer coverage within large companies is quite robust and it covers all your healthcare needs. If your company’s drug plan is considered “creditable” and you have worked at least 40 quarter in your lifetime, you can delay your enrollment into Medicare without facing late-enrollment penalties. Should you decide to enroll into Medicare Part A while you are still working in a large company, your company insurance pays first and your Medicare pays second.
If your company employs less than 20 people, you may need to sign up for Medicare when you first turn 65. Your employer can advise you if you will need to sign up for Medicare while you continue to work. In many cases, you may be losing benefits by not enrolling in Medicare while working for a small company. Should you decide to enroll into Medicare while you are still working in a small company, Medicare pays first and your company insurance pays second.
Other Important Points
While the decision is yours, there are factors to consider when deciding what coverage is best for you.
What is creditable drug coverage?
Medicare defines “Creditable Drug Coverage” as coverage that is at least as good or better than Medicare Part D coverage. If you’re on an employer plan that has “Creditable Drug Coverage”, you are not required to enroll in Medicare Part B if you remain on your employer coverage after turning 65.
Do you have dependents?
While your employer coverage may cover your spouse and children, Medicare only covers you. This is important to keep in mind when potentially shifting coverage.
Do you make use of an HSA?
You cannot contribute to an HSA if you are covered by a Medicare plan.
The Big Takeaway
Perhaps you’ve read this twice, and it still confuses you. Don’t worry; these are complex topics that require years of experience to understand fully. That is why the most important thing you can do is reach out to a CORE INSURANCE ADVISOR who can help walk you through the many challenges Medicare can present while still employed.
Here at CORE Insurance, we have agents dedicated to making this process as easy as possible. If you’re stuck and aren’t sure what to do next when it comes to your Medical coverage, call us today at 877-404-8060!