How Getting or Losing a Job Affects Medicare

Many people assume they have to stay on Medicare once they are a member, which isn’t always the case. Government rules state that those 65 or older need to either be on Medicare or have an employer plan that meets Medicare guidelines. To avoid penalties, it’s crucial to have at least one type of insurance coverage.

If a new employer offers insurance that meets the Medicare-specific rules, the employee can unenroll from Medicare Part A and Part B. In this case, there’s no issue with going in-and-out of Medicare. Without re-enrolling in Medicare, an employee can end up paying for both plans.

If you are over 65 and losing your job, when you leave the company, your employer is required to fill out a form confirming you have been on that plan since you were at least 65. That form is helpful for enrolling in Medicare; they will give you a period where you are eligible to join Medicare after reaching 65.

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), workers and their families who lose health benefits have the right to choose to continue group health benefits provided by their group health plan. For limited periods and with specific limitations (job loss, reduction in work hours, job transition, death, divorce, etc.), qualified individuals might be required to pay the entire premium for coverage up to 100 percent of the cost of the plan.

COBRA might be beneficial in a pinch, but overall, it could be a more expensive proposition. Typically, employers foot some or much of the monthly premiums; without an employer, you’ll be paying in full. Also, COBRA coverage doesn’t count as qualifying insurance instead of Medicare.

The different parts of Medicare play a critical role in creating the most tailored plan to suit your needs. Have a backup plan to pay for the things that won’t be covered under Medicare, such as dental work and routine hearing or vision care, long-term care, cosmetic procedures, or medical care overseas.

Medigap – a supplemental policy – is typically paired with Medicare to help cover out-of-pocket costs like deductibles and coinsurance. These are standardized regardless of which insurance company sells them. Depending on where you live, the premiums can vary among locations.

To learn more or consult with a representative about Medicare, contact the experts at Senior Health Medicare today.

Senior Health Medicare is a superior resource for Medicare guidance, information, and ongoing client support. Selecting a Medicare plan is not a flippant decision. It requires annual revisiting and re-evaluating in order for the member to retain the most cost-effective plan. Senior Health Medicare is here to serve as your resource through all the years to come. Contact us today at 888-404-5049 or visit us on the web at www.seniorhealthmedicare.com.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.