working and Medicare

[BoodaGazelle]

Hello all,


I have been ER'ed since 2015, and while I have been happy to have done so, I have been a *little* restless. About two weeks ago, a job was posted at an organization I volunteer with that looks like my dream job (or close to it).


I decided to apply for it, and passed the initial screening, so I have an interview coming up.


My question is this. I am 64 (as of 05/18) and DW is 63 (as of 09/16). We have healthcare thru ACA. If I get this job, next May, when I turn 65, my understanding is that I will still have to apply for Medicare, but that because I will have health insurance thru my company, Medicare will be like a 2ndary coverage?


Does that sound correct? I would appreciate hearing from anyone who has done something similar... it seems from lurking that there are at least a few.


Thanks!


birdman

 

[user5027]

Hello all,

My question is this. I am 64 (as of 05/18) and DW is 63 (as of 09/16). We have healthcare thru ACA. If I get this job, next May, when I turn 65, my understanding is that I will still have to apply for Medicare, but that because I will have health insurance thru my company, Medicare will be like a 2ndary coverage?

When my wife was working, we had health insurance through her work. When she turned 65 and signed up for medicare, she had to choose which insurance would be primary. With medicare primary, the work insurance terminated and I was able to go on 3 years of COBRA. It is a high deductible, catastrophic, no drug plan for $330/month. The 3 year ride will get me to within 6 months of medicare. Language in the documents even indicates they will entertain requests to extend beyond the 3 years.

I suspect the insurance company does not want to be stuck with medicare adjusting the claims.

I suggest you get the plan documents and read how it works with medicare yourself. We were getting incorrect information from HR (surprised, NOT!).

 

[momoftwo]

Until I retired last year, both DH and I were covered by my employer plan.
That was my primary (only) coverage.
DH was over 65. Medicare was his primary, employer plan secondary.

After I retired at 62, we both qualified for employer retiree plan.
At 64 now, it remains my primary until next year when Medicare will become my primary.
DH has Medicare primary, retiree plan secondary.

Its important to get the actual summary plan description for your plan.
I received alot of contradictory verbal info when deciding on retirement.

 

[Telly]

..... If I get this job, next May, when I turn 65, my understanding is that I will still have to apply for Medicare, but that because I will have health insurance thru my company, Medicare will be like a 2ndary coverage?

If you have qualifying insurance from an employer, and are actually employed (wages from the employer), you do NOT have to file for Medicare when you turn 65. You can if you want to, you don't have to. If you don't, when you later cease employment, that starts a special enrollment period for you to enter Medicare without penalty.

If you decide to "start" Medicare at 65 while employed, there are shadings of it to consider... Sign up only for Part A (hospitalization) that is "free" and continue employer insurance? Sign up for both Part A and Part B (pay monthly Part B premium) and retain your employer insurance? Dump your employer insurance and go whole hog on Medicare (A + B + Medigap Plan + Part D drug plan), or Medicare Advantage paying the Part B premium + the MA Premium.

My DW is over 65 and still working, and is only on employer insurance. When she retires (finally, some day), she would start Medicare. However, for other reasons (trying to get something out of SS, before it gets severely WEP'd due to governmental pension she will get upon retirement), she is going to start SS soon while working, she will be over FRA. But starting SS at age 65 or over automatically means starting at least Part A ("free") of Medicare, no way around that. Can and will decline Part B for the interim while she is still employed. When she retires, she then gets a special Part B enrollment window.

 

[BoodaGazelle]

Thanks to all who replied!

 

[Free To Canoe]

If you have qualifying insurance from an employer, and are actually employed (wages from the employer), you do NOT have to file for Medicare when you turn 65. You can if you want to, you don't have to. If you don't, when you later cease employment, that starts a special enrollment period for you to enter Medicare without penalty.

If you decide to "start" Medicare at 65 while employed, there are shadings of it to consider... Sign up only for Part A (hospitalization) that is "free" and continue employer insurance? Sign up for both Part A and Part B (pay monthly Part B premium) and retain your employer insurance? Dump your employer insurance and go whole hog on Medicare (A + B + Medigap Plan + Part D drug plan), or Medicare Advantage paying the Part B premium + the MA Premium.

My DW is over 65 and still working, and is only on employer insurance. When she retires (finally, some day), she would start Medicare. However, for other reasons (trying to get something out of SS, before it gets severely WEP'd due to governmental pension she will get upon retirement), she is going to start SS soon while working, she will be over FRA. But starting SS at age 65 or over automatically means starting at least Part A ("free") of Medicare, no way around that. Can and will decline Part B for the interim while she is still employed. When she retires, she then gets a special Part B enrollment window.

The possibilities are complex. Maybe the book: Get What's Yours For Medicare by Philip Moeller will help.

 

[fh2000]

If you have qualifying insurance from an employer, and are actually employed (wages from the employer), you do NOT have to file for Medicare when you turn 65. You can if you want to, you don't have to. If you don't, when you later cease employment, that starts a special enrollment period for you to enter Medicare without penalty.

If you decide to "start" Medicare at 65 while employed, there are shadings of it to consider... Sign up only for Part A (hospitalization) that is "free" and continue employer insurance? Sign up for both Part A and Part B (pay monthly Part B premium) and retain your employer insurance? Dump your employer insurance and go whole hog on Medicare (A + B + Medigap Plan + Part D drug plan), or Medicare Advantage paying the Part B premium + the MA Premium.

My DW is over 65 and still working, and is only on employer insurance. When she retires (finally, some day), she would start Medicare. However, for other reasons (trying to get something out of SS, before it gets severely WEP'd due to governmental pension she will get upon retirement), she is going to start SS soon while working, she will be over FRA. But starting SS at age 65 or over automatically means starting at least Part A ("free") of Medicare, no way around that. Can and will decline Part B for the interim while she is still employed. When she retires, she then gets a special Part B enrollment window.

If retire after 65, and use the special enrollment period to sign up Part A and Part B, then decide on using Medigap + Part D, will there be a penalty for signing up Part D late? Or it is just like Part A and B, with no penalty since you are coming off the employer group plan?

 

[BoodaGazelle]

@Telly - it may be impossible to answer this, but how much is “whole hog” Medicare?

 

[TrvlBug]

If retire after 65, and use the special enrollment period to sign up Part A and Part B, then decide on using Medigap + Part D, will there be a penalty for signing up Part D late? Or it is just like Part A and B, with no penalty since you are coming off the employer group plan?

No pentalty. Like Medicare, they will require proof from your employer that you were covered.

 

[Telly]

Right. You can look them up on these three links I found quickly. If it were me, I'd also look at the official Medicare.gov website and find them. Often, I've found that search engines can find what I am looking for a lot quicker looking inside Medicare.gov than the search tool on the Medicare.gov site.

https://q1medicare.com/Blog-PartDCommunityBlogInformYourself.php?blog_id=76
https://q1medicare.com/q1group/MedicareAdvantagePartDQA/FAQ.php?faq_id=693
https://www.ncoa.org/wp-content/uploads/part-d-special-enrollment-periods.pdf

But I think part of your question may be a moot point. I personally can't think of why someone 65 or over, working, and eligible for employer-provided insurance would want to pick up Part B as long as they are employed. Maybe there is some reason, I just don't see it. It would require paying the monthly Part B premium, in addition to the employee's monthly work insurance premium. Same thing for Part D drug plan coverage, assuming your work insurance is considered creditable coverage for it's drug component. Going too far down the belt and suspenders route may result in an expensive monthly clothes bill

Part A I can see, as it's free, and adds additional pickup of costs for hospitalization while working. And if 65 or over, and at or above FRA to escape the SS $1 for $2, or $1 for $3 hold back of SS benefits, and want to collect SS, Part A is mandatory, no getting away from that.

 

[Telly]

@Telly - it may be impossible to answer this, but how much is “whole hog” Medicare?

I'll take a shot at that using my numbers for Original Medicare route...

Original Medicare route -
Part A, free.
Part B, $144.60/mo. this year, everyone pays it.
Plan N Medigap that I have, $128/mo. now till next July.
Part D drug plan that I have, $13/mo. this year.

Medicare Advantage route -
You pay the $144.60/mo. this year to Medicare.
Cost of whatever Advantage Plan you pick, monthly.

I live in a higher-medical cost area, so that affects Medigap, Part D, and MA pricing. I have heard here on E-R.org that South Florida is significantly higher $ area.

I'll stay out of the choosing O/M vs. MA, I've made my choice and are happy with it.

EDIT - If your income is high enough to hit the IRMAA, then you will pay more!