Medicare and Secondary Health insurance

[11522914]

My DW recently retired and has retiree medical where she pays the same low premium as when she was working.

I knew she had this benefit many years ago and it certainly helped her retire early.

I thought that the insurance would end when she started Medicare. This week we received some information from her company and to my surprise, based on the number of years she worked, she can keep her insurance secondary up to 7 additional years after she starts Medicare.

The one item in the document stated do not get Medicare prescription coverage as her drug coverage would be primary.

I haven't really studied up on Medicare yet as it is several years away. I have no idea how having secondary coverage with Medicare works.

Is it beneficial to keep her insurance as secondary?

Does she still need to get supplemental coverage?

What are the major benefits for keeping it or are there any reasons she would not want to keep it?

Thanks

Kevin

 

[Gotadimple]

Is it beneficial to keep her insurance as secondary.
Yes, I would think so. And it should work similarly to a supplemental policy covering the deductibles and co-pays required by Medicare, plus providing coverage for some things that Medicare doesn't cover (like coverage when you travel out of country). But once that coverage ends you will need a supplement.

A visit with an insurance agent who sells Medicare Supplement policies can be helpful. They don't charge for their service and because you will need them at some point can be a source of good info.

- Rita

 

[11522914]

Is it beneficial to keep her insurance as secondary.
Yes, I would think so. And it should work similarly to a supplemental policy covering the deductibles and co-pays required by Medicare, plus providing coverage for some things that Medicare doesn't cover (like coverage when you travel out of country). But once that coverage ends you will need a supplement.

A visit with an insurance agent who sells Medicare Supplement policies can be helpful. They don't charge for their service and because you will need them at some point can be a source of good info.

- Rita

Thanks Rita.

As we get closer to Medicare I'll reach out to an agent to discuss options and current rules as it is 5 years away.

I just didn't know how secondary insurance worked as the information the company provided did not provide a lot of detail.