Changing from Obamacare to Medicare

August 14, 2015 Blog Article

If you are currently enrolled in a Healthcare Marketplace plan and receiving monthly premium tax credits, be aware that you will no longer qualify for those credits when you turn 65 and are eligible for Medicare.

If you have a Marketplace plan now, you can keep it until your Medicare coverage starts. Then, you can cancel the Marketplace plan without penalty.

When to apply for Medicare

Once you are eligible for Medicare (at Age 65), you’ll have a 7 month Initial Enrollment Period to call Social Security and enroll. This 7 month initial enrollment period begins 3 months before the month you were born, the month of, and 3 months after your 65th birthday.

In most cases it’s to your advantage to sign up for Medicare when you’re first eligible because once your Medicare Part A coverage starts, you won’t be able to keep any premium tax credits or other savings for a Marketplace plan based on your income. You’ll have to pay full price for the Marketplace plan.

If you enroll in Medicare after your initial enrollment period ends, you may have to pay a late enrollment penalty. In addition, after your initial enrollment period ends you can only enroll in Medicare Part B (and Part A if you have to pay a premium for it) during the Medicare general enrollment period (from January 1 to March 31 each year). AND your Medicare coverage doesn’t start until July of that year. This may create a gap in your coverage if you do not keep your marketplace plan and continue paying full price for the cost of the insurance.

Learn more about how and when to enroll in Medicare.

If you want coverage to supplement Medicare, you can get Medicare supplement (Medigap) insurance. You cannot supplement Medicare with a Marketplace plan. It’s against the law for someone who knows that you have Medicare to sell you a Marketplace policy. This is true even if you have only Medicare Part A or only Part B.

Learn about other Medicare options, like Medicare Advantage Plans.

Canceling your Marketplace plan

To cancel your plan online, follow the instructions that best describe your situation:

“I’m the only member of my household enrolled on my Marketplace plan. You’ll simply terminate the whole application.”

How to end coverage for everyone on your application

Log into “My Account” at www.healthcare.gov
Select “Visit the Marketplace for Individuals and Families.”
Select the application you want to end coverage.
On the far left side of the screen, select “My Plans & Programs.”
Scroll down and select the red button that says “End (Terminate) All Coverage.”
Select an effective date to end your coverage that’s at least 14 days from the current date and click the attestation.
Select the red “Terminate Coverage” button.
A red “Cancelled” or “Terminated” status should appear above the plan you ended.

You can also end your plan by phone at 1-800-318-2596 (TTY: 1-855-889-4325)

Available 24 hours a day, 7 days a week.

“My spouse and I are both enrolled in the same Marketplace plan, but only my spouse needs to cancel due to getting Medicare. I want to keep the Marketplace coverage for my spouse and end Marketplace coverage only for myself.”

How to end coverage for anyone other than the Applicant:

Log into “My Account” at www.healthcare.gov
Go to “Report a Life Change.”
Select “Add or remove member of household” and then click “Continue” twice.
Continue clicking “Save & Continue” until the “You’re applying for health coverage for these people” page.
Select the “Remove” button for the person you’re removing from Marketplace coverage and continue through the application. Note: You must complete steps 5 and 6 for each person you want to remove from Marketplace coverage.
On the household information screen, add the removed spouse or dependent’s information if they are still a member of your household.
Click the green “Continue to Enrollment.”
Complete the steps to choose or confirm a health plan. Note: Only the people who are still eligible to enroll in a health plan through the Marketplace will be asked to choose or confirm a plan before confirming enrollment.

In most cases, when you end coverage for only some people on your application, your coverage ends immediately. Be sure not to cancel your Marketplace plan before your Medicare coverage begins. Otherwise, you may have a gap in coverage.

IMPORTANT NOTE: When you end coverage for just some people on your application, their premium tax credit or other savings may change. You may need to update your household income after ending coverage for one or more people.

Becoming newly eligible or ineligible for premium tax credits or changes to other cost-savings may qualify them for a Special Enrollment Period.

You can also end your plan by phone at 1-800-318-2596 (TTY: 1-855-889-4325)

Available 24 hours a day, 7 days a week.

Would you like my help?

If you would like to talk to someone about your options or schedule a meeting at your home or a nearby meeting place, you can call 207-370-0143 or use this form to ask a question.

The best part about working with me is that it will not cost you anything to meet and discuss your options or to review the plans that are available. I am paid by the insurance companies in the form of a commission if you enroll in a plan. You will not pay any more than anyone else and you are under no obligation whatsoever to enroll in any plans if you meet with me. My goal is to help you and I have found great joy in being able to offer my services to people who need my help.