Your Medicare Community - MedicareFAQ

How Employer Group Coverage Works with Medicare

August 18, 2020 Lindsay
Your Medicare Community - MedicareFAQ
How Employer Group Coverage Works with Medicare
Show Notes Transcript

Are you aging into Medicare and still working? Don't go anywhere! In this video, we explain how your employer coverage works with Medicare. My name is Lindsay Engle, and I'm the Medicare Expert for Elite Insurance Partners and MedicareFAQ.com. The size of your employer will be a factor in your Medicare decision when you're 65 years old and still working.

If Your Employer Has 20+ Employees:
If your employer has more than 20 employees, your employer coverage becomes primary, and Medicare becomes secondary. In this scenario, most beneficiaries choose to enroll in Part A because Part A is usually premium-free as long as you have paid into Medicare for sufficient quarters. If you end up at the hospital, your Part A benefits will help keep your out-of-pocket cost lower.

Part B is your outpatient coverage, and Part D is your prescription drug coverage. As long as your employer has more than 20 employees, the coverage is considered creditable under Medicare. This allows you to delay enrolling in Part B and Part D without being penalized.

Because employer group coverage usually includes outpatient services and prescription drug coverage, most beneficiaries choose to delay enrolling since each comes with a monthly premium. Down the road, when you retire, you'll qualify for a Special Election Period. You'll be able to enroll in both Part B and Part D without incurring any penalties. 

If Your Employer Has Fewer Than 20 Employees:
If your employer has fewer than 20 employees, your Medicare becomes primary, and employer coverage is secondary. In this scenario, you'll want to enroll in both Part A and Part B. If you don't, you could be responsible for paying 80% of your outpatient services as well as incur a late penalty.

An Exception:
If you have a high-deductible plan and health savings account, and you plan to continue contributing or accepting your employer's contributions, you shouldn't enroll in any parts of Medicare. This is because the IRS states that if you have any additional coverage, including Part A, you cannot continue contributing to your HSA.

Important Tips:
• It's important to make sure your employer notifies Medicare that you  have retired to avoid rejection of any of your medical bills
• If you're currently collecting Social Security Income, you will automatically be enrolled in Part A. You cannot collect SSI without also enrolling in Part A.

If you plan to continue working past 65 and delay retirement, I hope you found this video helpful. If you did, make sure to subscribe to our YouTube Channel! Turn notifications on, so you know as soon as we upload a new video.

Medicare and Employer Coverage FAQ: https://www.medicarefaq.com/faqs/medicare-and-employer-coverage/
Medicare & HSA: https://www.medicarefaq.com/faqs/hsa-and-medicare/
Our Medicare Facebook Community: https://www.facebook.com/groups/MedicareFAQ/

#Medicare #Turning65 #EmployerGroupCoverage

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If you're aging into Medicare and still working, don't go anywhere. In today's video,

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we're going to go over how your employer coverage works with Medicare.

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Hi Medicare Community. My name is Lindsay Engle,

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and I'm the Medicare expert for Elite Insurance Partners and MedicareFAQ.com.

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The size of your employer will determine

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what parts of Medicare you should enroll in when you age in at 65 and are still working.

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If your employer has more than 20 employees,

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then your employer coverage becomes primary and Medicare becomes secondary.

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In this scenario, most beneficiaries choose to enroll

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in Part A since Part A is usually premium-free as long as you paid into enough quarters.

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In the case you end up in the hospital your Part A benefits will help keep your

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out-of-pocket costs lower. Part B is your outpatient coverage

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and Part D

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is your prescription drug coverage. As long as your employer has more than 20 employees

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then the coverage is considered credible under Medicare.

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This allows you to delay enrolling into Part B and Part D without being penalized

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since employer group coverage usually includes outpatient services

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as well as prescription drug coverage, most beneficiaries choose to delay enrolling

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since each come with a monthly premium.

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Then when you retire down the road, you'll qualify

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for a special election period which allow you to enroll in both Part B

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and Part D without incurring any penalties. If your employer has less than 20 employees,

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then your Medicare coverage will be primary

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and your group employer coverage will be secondary. In this scenario,

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you'll want to enroll in both Part A and Part B.

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If you don't you could be responsible

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for paying 80% of your outpatient services as well as incur a late penalty.

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Now that you know how Medicare will work with both large employer coverage

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and small employer coverage we’ll go over a few key facts that's important to know.

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Sometimes employers forget to notify Medicare that you've retired.

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It's important to make sure that they're notified to avoid any

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of your medical bills from being rejected.

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If you have a high deductible plan and a health savings account,

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you should not enroll into any parts of Medicare if you plan to continue contributing

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or accept contributions from your employer,

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this is because the IRS states that if you have any additional Health

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Care coverage including Medicare Part A,

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you cannot continue to contribute to your health savings account.

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The last key factor we’re going to mention is that if you're currently collecting Social Security Income,

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you'll automatically be enrolled into Part A.

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You cannot collect Social Security Income without also enrolling

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into Part A. If you plan to continue working past 65

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and delay retirement,

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I hope you found this video helpful.

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And if you did make sure to subscribe to our YouTube channel. Turn notifications on

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so that you're notified each time

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we upload a new video. We also have a fantastic Medicare

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community on Facebook. We’ll make sure to include a link in the description below

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so you can join. We'll see you next time.

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Bye.