If I have retiree insurance, do I need Medicare Part A & Part B?
Once you become eligible for Medicare, retiree insurance (insurance you get from a past job) is secondary to Medicare, which means that it pays after Medicare pays. If you have retiree insurance from your (or your spouse’s) former employer, generally it is a good idea to enroll in both Medicare Parts A and B as soon as you are eligible. This applies if you are eligible for Medicare because you are 65 or older or due to a disability. There are some exceptions such as if you have End-Stage Renal disease, etc.
Note: If you do not take Medicare when you are eligible and then later decide to enroll, you may have to pay a Part B penalty for late enrollment in addition to the monthly premium. Additionally, you may also have gaps in your coverage because you will have to wait until the General Enrollment Period to enroll in Part B. The General Enrollment Period is January 1 through March 31 each year, with coverage beginning July 1.
If I have retiree insurance, do I need Medicare Part D?
If you have prescription drug coverage through your retiree plan, you may not have to switch a Part D PDP (prescription drug plan) right away, unless you want to. It is best to check and compare each plan’s formulary (The list of covered prescription drugs the plan includes) to see which one fits you the best, as well as the copays, deductibles, etc. If you decide to keep your prescription coverage continuously through your retiree insurance plan and your prescription plan’s coverage is creditable (meaning it is as good as or better than Medicare’s coverage) then you won’t get penalized later on when you decide to switch to a Medicare Part D prescription drug plan. However, keep in mind that if you have any gaps in prescription coverage after you are eligible for Part D, or you don’t have creditable prescription coverage, you will be charged 1% penalty per month going forward for the months that you didn’t have coverage at all or didn’t have credible coverage.
Before making any decisions that involve your retiree coverage changes, you should always speak to your benefits administrator.
Note: Medicare Insurance information can be overwhelming and confusing to many people. As an independent licensed agent I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose and enroll in a plan that you feel fits your needs.
By the way, it doesn’t cost you any more if you enroll in a Medicare Insurance plan through me as an independent agent versus directly with an insurance company either over the phone or via the Internet, since I get paid by the insurance companies for your enrollment. Plus you will have personalized service by a local agent. If you would like my assistance, please call me at 941-404-5334.
By calling this number, I understand I will be directed to a licensed insurance sales agent.