Employer health insurance waiver

[utrecht]

Although I retired in Jan 2015, I am still being paid until Feb 2016 due to a clause that allows me to forego a lump sum for all of my vacation and sick time and instead be paid bi weekly until all of my discretionary time is exhausted. I chose to receive half pay for twice as long. The benefit is that I can continue with heath insurance at employee rates.

So in Feb, I will either switch to retiree rates which are excessive, or get my own insurance. My employer sent me a waiver of coverage form to sign, but it also states that I "lose any Medicare subsidy previously provided to me by" my employer. What does that mean? If I waive retiree coverage I am not eligible for Medicare?

Mods...please fix the misspelling in the threat title

 

[donheff]

Did they pay into Medicare for the last year since they were in effect "paying" you a salary? Did they deduct SS from your checks?

 

[utrecht]

I have had Medicare deductions for my entire 24 years and also during this past 10 months since Jan, but never had SS deductions and will not collect SS.

 

[travelover]

........ it also states that I "lose any Medicare subsidy previously provided to me by" my employer. What does that mean? If I waive retiree coverage I am not eligible for Medicare?...........

Dunno, but my employer paid retiree health insurance ends when I reach Medicare eligible age (65), but I continue to get a cash payment for use for a Medigap or Advantage plan. Perhaps this is the subsidy referred to?

 

[ziggy29]

I believe it means that if your employer (or union) was providing some drug subsidy for retirees under Medicare Part D, they will no longer do so in the future. It does not mean you are no longer eligible for Medicare.

This is the best I could find while googling for it:

https://www.cms.gov/Medicare/Prescr...dex.html?redirect=/employerretireedrugsubsid/

 

[donheff]

My guess is your employer is just informing you that it's 1.4% employer contribution to Medicare is ending soon.

 

[utrecht]

My guess is your employer is just informing you that it's 1.4% employer contribution to Medicare is ending soon.

But does that have any effect on my eligibility for Medicare in the future? I guess I dont know what qualifies a person for Medicare. Do you have to work a certain number of years and have Medicare taxes withheld? If so, how long is that number of years?

 

[ziggy29]

But does that have any effect on my eligibility for Medicare in the future? I guess I dont know what qualifies a person for Medicare. Do you have to work a certain number of years and have Medicare taxes withheld? If so, how long is that number of years?

If you paid Medicare taxes for at least 10 years, you are eligible for Medicare at age 65. You may be eligible in other circumstances as well, but this is an easy one to start with.

Calculator here: https://www.medicare.gov/eligibilitypremiumcalc/

 

[MBAustin]

I suggest you call your HR folks to clarify exactly what they mean.

 

[utrecht]

I suggest you call your HR folks to clarify exactly what they mean.

I will on Monday but having dealt with them in the past, I thought I would come here first and get an intelligent answer instead of hearing "we dont know Sir, we just send the forms out" from a City employee.

 

[donheff]

I ran the calculator. It looks like Part A is free if you paid in for 10 years (or qualify as a spouse). If you paid in for less than 10 years you have to pay for Part A.

 

[Alan]

It may be a generic statement for those retirees aged 65+. I had a similar statement in the letter from my ex-employer last month. Beginning 1/1/16 retirees who are receiving Medicare Part B subsidies will no longer get it. Up to now all retirees at Medicare age get the option of Group Medigap insurance plus they get their Medicare Part B premiums paid. I was talking to one of my retired co-workers who is aged 77 and retired at age 60. Up to now the Part B insurance has been fully paid plus Group rates for Medigap. A Medigap policy for him and his wife has now gone up by $310 plus he loses over $100/month for him and his wife making a whopping increase of over $500/month. (He has signed up for a much cheaper Medigap policy in the individual market for 2016)