If you have retiree insurance, it is a good idea to sign up for Medicare when you first become eligible at age 65.

According to Medicare rules, retiree insurance plans pay secondary to Medicare.  This means that Medicare pays first for your health care, and then your retiree coverage pays for some or all of the remaining costs.  If you do not sign up for Medicare, you may have problems accessing coverage.

Here are a few important things to know.

First, if you become eligible for Medicare and don’t sign up, your retiree policy may not cover you.  Many retiree policies require you to sign up for Medicare Part A (hospital insurance) and Part B (medical insurance) and may not make payment until Medicare does.  If your retiree policy does cover your health care costs, it may later recoup payments it made when Medicare was supposed to pay primary.

Another consequence of not signing up for Medicare is the possibility of a late enrollment penalty (LEP).  An individual can be subject to this costly penalty if they do not sign up for Medicare when they are first eligible to do so.  You can avoid a late enrollment penalty by signing up for Medicare three months before or up to three months after you turn age 65.

It’s also important to know that some retiree policies provide creditable prescription drug coverage.  Creditable coverage means that your coverage is as good as or better than Medicare Part D prescription drug coverage.  If you have creditable drug coverage through your retiree plan, you can choose not to sign up for a Part D plan and not face a late enrollment penalty later should you lose your retiree coverage and decide to enroll in a Part D plan.

Would you like my help?

If you would like help reviewing your plan benefits and comparing those benefits with other plans that are available or if you just want to ask a few questions, you can call me directly at 207-370-0143 or send me a message.

The best part about working with me is that it will not cost you anything to talk with me and review your options.  I am paid by the insurance company once you choose the best plan for you.  I will not ask you to pay me or to make a donation.  And you will pay the same price for your insurance plan that everyone pays whether they had my help or did it all alone.

“My goal is to help people and I have found great joy in being able to offer my services to people who need my help.”

Should I apply for Medicare even though I have insurance at work?

Yes. If you’re not retiring and you are continuing to work then you may want to consider enrolling in Medicare Part A and delaying Part B until you retire but there is a lot you should be aware of before you make this decision… [READ MORE]