If you plan to work past 65 and will soon be eligible for Medicare, you probably have questions regarding if you can enroll in Medicare while still covered by an employer group health plan. Fortunately, it is possible to have both Medicare and an employer’s group health plan. Employer group health plans can work together with Medicare to ensure your health care costs and needs are covered. This post will look at how employer group health plans work and how they can work with your Medicare plan.
What is an Employer’s Group Health Plan?
This is a health insurance plan that is provided by a company or union for its active employees. This insurance plan covers a variety of health care services for current employees. And, in some cases, the plan can provide benefits for spouses and dependents as well. Group health insurance plans are required by federal law to adhere to a certain standard of conduct.
While most employer’s group health plans provide comprehensive health benefits as required by law, the health insurance coverage depends solely on the plan. Understanding the kind of group health plan your employer provides can help you determine whether you will need to switch or have both your employer’s group health plan and Medicare.
Can You Choose Your Employer’s Group Health Plan Instead of Medicare?
Generally, your company’s size will determine whether you will be subject to a late enrollment penalty for deciding not to sign up for Medicare when you first become eligible. If, for instance, your employer has fewer than 20 employees, you must enroll in Medicare during your Initial Enrollment Period, or you may be penalized for signing up later.
However, if your company has 20 or more employees, you can choose to delay enrolling in Medicare without any late enrollment penalties when you later retire or stop working.
How Does Employer Group Health Plan Work with Medicare?
The size of your company will determine how your group health plan will coordinate with your Medicare coverage. If you are working for a company with over 20 employees, your employer group health plan is primary while Medicare is secondary. In this case, you may decide to enroll in only Medicare Part A since it is premium-free for most people.
If your employer has less than 20 employees, Medicare will be primary, and your employer group health plan will be secondary. If this is the case, it may be more beneficial to enroll in both Part A and Part B, rather than just Part A.
Do you have more questions about how to coordinate your employer’s group health plan with your Medicare insurance? You can call Medicare Sharks and speak with a licensed and experienced Medicare expert to get your questions answered.