Must I pay a Medicare premium?

[mystang52]

I could not find this on the government's website, and it is after hours so I can't call. This may seem like a stupid question, but with government financing anything is possible:
DW is still w*rking and we are both covered by her employer's health insurance. I will start collecting SS retirement this September, a month after I turn 65. Since I'm not applying for Medicare, can I presume there will be no Medicare premium deducted?

 

[MissMolly]

Most employers require you move to Medicare once you turn 65. You should have your DW check with her HR department before any decisions are made.

 

[PERSonalTime]

I agree with MissMolly. If your DW's employer requires that you have to signup for Medicare, you'll have to pay for the Part B premium. If you're not required to apply for Medicare, you won't.

 

[mystang52]

OP here. DW turned 65 last year and we checked that. She does not have to apply for Medicare while employed.

 

[meierlde]

The more important question is do you have to have medicare, the rules for dependents may be different than employees. I expect that sooner or later the employer will wise up. Note that you can sign up for Part A without part B if covered by DW's insurance (Part A is hospital charges except physicians)

 

[Another Reader]

I know someone over 65 that works in a warehouse job at Amazon. The pay ain't great, but the health insurance is. He and his wife got out of paying for Medicare Part B and Amazon's insurance covers the same things as Part B and a Medicare supplement policy. IIRC, the cost for both of them is $75 per biweekly paycheck.

 

[Fedup]

OP here. DW turned 65 last year and we checked that. She does not have to apply for Medicare while employed.

Only the person who is working with health insurance don't have to get premium part B. But not the spouse. If he delays one year, he will get penalty. This is part B. Part A is free for most people.

 

[marko]

He and his wife got out of paying for Medicare Part B and Amazon's insurance covers the same things as Part B and a Medicare supplement policy.

I might have it wrong, but I think if you defer Part B, once you do decide to get it there is a penalty based upon how long you wait and the penalty payment is for 'life' (for as long as you stay on Part B).

 

[Fedup]

I might have it wrong, but I think if you defer Part B, once you do decide to get it there is a penalty based upon how long you wait and the penalty payment is for 'life' (for as long as you stay on Part B).

Penalty is 10% a year. This is why I had to sign my husband up.

 

[nun]

For every year that you defer Medicare Parts A and B the premium will go up by 10%. This is a choice that US expatriates have to make. Even though they might be covered by other medical plans and Medicare doesn't work outside the US they still pay the Medicare premiums just in case they ever want to live in the US again.

 

[Another Reader]

They were on Medicare A and B before he got that job. My understanding is the penalty does not apply if you are covered by an employer's insurance instead.

 

[Fedup]

They were on Medicare A and B before he got that job. My understanding is the penalty does not apply if you are covered by an employer's insurance instead.

Are they both working? If yes then they are ok, but not one spouse.

 

[mystang52]

Thanks all. I will have DW check with her HR people. Then, I'll call Medicare folks as well. Appreciate your input.

 

[Corporateburnout]

Are they both working? If yes then they are ok, but not one spouse.

They don't have to be both working. No penalty applies for delaying part B at 65 assuming the person is covered under a group health insurance from a spouse's current employer and the spouse is an active employee.

 

[CardsFan]

They don't have to be both working. No penalty applies for delaying part B at 65 assuming the person is covered under a group health insurance from a spouse's current employer and the spouse is an active employee.

This is my understanding, based on friend's circumstances. His younger wife was still working and had group coverage from work. When she unexpectedly passed away he switched to Medicare. He did need to get a letter from the employer verifying coverage, but it sounded like it was common practice and no big deal. YMMV

 

[Fedup]

They don't have to be both working. No penalty applies for delaying part B at 65 assuming the person is covered under a group health insurance from a spouse's current employer and the spouse is an active employee.

You are right. Current and active job. Not just employers plan like retiree's health insurance.

 

[MBSC]

I could not find this on the government's website, and it is after hours so I can't call.

Here you go. 1-800-MEDICARE is open 24 hours. If you delay Medicare enrollment, at the time you do enroll you will need a letter from the spouse's employer stating you had continuous coverage to avoid a Part B late enrollment penalty. The letter, or another one, will also need to state the plan had prescription drug coverage to avoid the Part D late penalty.

Most people should enroll in Medicare Part A when they turn 65, even if they have health insurance from their (or their spouse’s) current employer. This is because most people paid Medicare taxes while they worked and therefore do not pay a monthly premium for Part A. However, some people may want to consider delaying Medicare Part A until a later date, such as people who contribute to a Health Savings Account (HSA).

Most people need to enroll in Part B when they turn 65. Only people who have health insurance from their (or their spouse’s) current employer may be able to delay enrolling in Part B without penalty.

Medicare Enrollment: https://www.cms.gov/Outreach-and-Ed...ers-and-Unions/FS3-Enroll-in-Part-A-and-B.pdf

 

[mystang52]

Here you go. 1-800-MEDICARE is open 24 hours. If you delay Medicare enrollment, be sure the employer will provide the correct forms to prove private sector coverage.

This is great! Thanks!

 

[PERSonalTime]

I agree with corporateburnout.

 

[Chuckanut]

Yup, make sure that at 65 your are not automatically put into a Medicare supplement policy. Without enrolling in Medicare that will be a huge hole in your coverage.

That happened to a relative of mine and she was out $5000 dollars for some minor surgery that would have easily been covered by Medicare had she enrolled in it rather than assuming things. Shame on her employer for not notifying people of the change. Or maybe they did and she just tossed in in the trash?

 

[sakowitzm]

Two additional points for those that may read this thread later.

First, one of the above posts says that people "should" enroll in Medicare Part A. It is my understanding that Medicare Part A is MANDATORY. That there is no "should" about it. You WILL be automatically enrolled in Part A and you do not have a choice.

Second, as of 2017, Part B premiums are $134/month for those making $85,000 or less (single) or $170,000 or less (joint return.) Thus, the penalty is not terribly stiff - $13.40/month the first year. So (again, if I understand it correctly), if you opt out for a full 10 years, you would save yourself $134 X 12 months X 10 years = $16,080. More, actually, since premiums would presumably go up over time.

And then starting in year 11, your penalty would be 10 years of 10%, or 100% of the premium. For simplicity, let's say it was still $134/month. At that time, instead of paying ($134 X 12 =) $1,608 a year, you would end up paying ($268 X 12 = ) $3,216 a year. A difference, certainly, but you would have saved $16,000 over the preceding 10 years.

Which is all just to say that for many people, the penalty need not be the deciding factor.

 

[mystang52]

OP here. We did our homework and in my case I do not have to apply for Medicare. Our health insurer does not require over-65 members (or spouse) to have Medicare. And, Medicare doesn't require it. Finally, my SS application has a section that asks about existing medical coverage, since I checked off I am not applying for Medicare.
The most important thing, for others' benefit, is to check with the private health insurer. Medicare doesn't care either way, but obviously there could be a serious gap in coverage if the private health insurer requires Medicare to be primary.

 

[sakowitzm]

mystang52 -- you didn't specify Part A or Part B. I agree with you completely that the key is to check with the private health insurer. But I do maintain that Part A is mandatory - regardless of whether or not the private health insurer *requires* you to have it. The US Government requires everyone who is ELIGIBLE for Medicare to accept/register for Part A.

 

[target2019]

Within a year I am hitting the magic number--65.
I am covered by spouse' health insurance. I have not seen anything yet that tells me I can skip the signing up process.
We're checking with the insurer also, at the next health care benefits dog-and-pony show. That is coming up in next month or two.

 

[sakowitzm]

I happened to be reading another thread on another forum, wherein they referenced the fact that Part A is mandatory. It turns out that it's not *technically* mandatory, but if you waive Part A, then you cannot receive standard social security benefits, or disability benefits, and if you have been receiving those, you must pay them all back. Thus, for all intents and purposes, it is mandatory for anyone eligible for Medicare. Reference is here:

https://secure.ssa.gov/apps10/poms.nsf/lnx/0600801002

HI = hospital insurance, which is Medicare Part A
RSDI = social security Retirement, Survivors, and Disability Insurance