Question on Medicare vs. private insurance

[catii]

Wife retires the end of June, & has been offered a consulting contract. One option is to continue with her existing health insurance, but I'm not sure if it will be mandatory to start paying for Part B. With her as a non-employee, does Medicare require applying for Part B? Or does her still having full-blown health insurance override that requirement?

She's 65, & I'm 72, & we both have Part A, but have no desire whatsoever to dive into the deep Part B abyss until we are forced, kicking & screaming!

 

[MissMolly]

As long as the employer has 20 or more employees she will not be required to sign up for Part B and can continue under the employers insurance plan.

 

[catii]

But wife will no longer BE an employee, even though her company is larger than 20. Do you have a source?

 

[audreyh1]

The consulting contract includes health insurance benefits?

 

[MBSC]

One option is to continue with her existing health insurance...

But wife will no longer BE an employee, even though her company is larger than 20. Do you have a source?

The best course of action is to consult with HR since the post is not clear on what happens to the "existing health insurance" when she retires and starts consulting. Does she remain on the large group plan? Does it convert into a retiree plan? If it converts into a retiree plan she will probably need to enroll in Part B (FEHB has an exception) as virtually all retiree plans are secondary to Medicare .

Here is a CMS "decision tree" on when those with a group plan should enroll in Part B: https://www.cms.gov/Outreach-and-Ed...ers-and-Unions/FS3-Enroll-in-Part-A-and-B.pdf

From the Medicare website:

I'm currently working, and I have coverage through my job.

The size of the employer determines whether you may be able to delay Part A and Part B without having to pay a penalty if you enroll later.

**The employer has fewer than 20 employees. You should sign up for Part A and Part B when you're first eligible. In this case, Medicare pays before your other coverage.

**The employer has 20 or more employees.

Ask your benefits manager whether you have group health plan coverage (as defined by the IRS). People with group health coverage based on current employment may be able to delay Part A and Part B and won’t have to pay a lifetime late enrollment penalty if they enroll later. If you want to delay both Part A and Part B coverage, you don’t need to do anything when you turn 65.

If you’re eligible for premium-free Part A, you can enroll in Part A at any time after you’re first eligible for Medicare. Your Part A coverage will go back (retroactively) 6 months from when you sign up (but no earlier than the first month you’re eligible for Medicare).

Source: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/should-i-get-parts-a-b

Retiree insurance

If you're retired and have Medicare and retiree coverage from a former employer, generally:

Medicare pays first for your health care bills
Your Retiree health plan coverage pays second

How your retiree health plan coverage works depends on the terms of your specific plan.

Source: https://www.medicare.gov/supplements-other-insurance/retiree-insurance

 

[catii]

Thanks, MBSC. That chart is what I needed, but hadn't found. Time for her to talk with HR.