Medicare and Group Health Insurance

If you decide to continue working beyond the age of 65, you are not alone. Many people are deciding to continue working until their full retirement age. Others just like to work and plan on working for the foreseeable future.

In the eyes of Medicare, if you or your spouse are actively employed and on an employer group health plan, you do not need to worry about Medicare. The employer’s coverage is considered credible coverage and will save you from being penalized if you delay the start of Medicare.

There are certain companies who do require you to go on Medicare once you turn 65 even if on the employer has a health plan. Because this could be the case for you, I always recommend you speak to your human resources department to find out if your company requires you to go on Medicare.

Medicare Part A is generally a zero dollar premium which essentially makes it free. I say generally because it is only free if you or your spouse have put in the necessary amount of time in the workforce. This is currently 40 quarters , or 10 years of working and paying into Medicare.

Because Medicare Part A is “free“, many people who are still employed or on an employer group health plan, will opt for taking Medicare Part A when they turn 65 and not taking Medicare Part B.

One thing to note is, it is not necessary to even get on Medicare Part A. One of the things that Social Security will not tell you is about a “Trial Right”.

You have a Guaranteed Issue Right if you joined a Medicare Advantage Plan (like an HMO or PPO) when you were first eligible for Medicare Part A at 65, and within the first year of joining. If you do not like the coverage offered through the Medicare Advantage Plan and you decide you want to switch to Original Medicare, you have the right to buy any Medicare Supplement that’s sold in your state by any insurance company.

Guaranteed Issue Right means you can get a Medicare Supplement without having the hassle of answering all the health questions.

This can be a little confusing. Please feel free to email me if you have any questions. I am more than happy to help. Jen@JenniferBellBenefits.com


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