Medicare and Employer Coverage
Did you know that you can have both Medicare and employer insurance coverage? Or, if you would rather have one or the other, you can pick the coverage that works best for you.
Medicare Enrollment
To understand how both plans interact with the other and your options, you need to understand how you become eligible for and enroll in Medicare.
When you turn 65, you officially become eligible for Medicare and can enroll in any plan of your choice. This is referred to as your Initial Enrollment Period (IEP).
If you miss your IEP, which lasts during the 7 months surrounding your 65th birthday, you may be charged a late penalty and may have a harder time qualifying for certain plans.
There is, however, an exception if you have coverage through your employer. You also have options for combined coverage.
Your Three Options
Option number one is to delay your Medicare enrollment. Because there is an exception to late enrollment fees, you can wait till your employer coverage ends to enroll in Medicare.
Option number two is canceling your employer coverage in favor of Medicare. You may opt for Medicare if you feel that Medicare will serve you well and no longer want or need to pay for your employer insurance.
However, the third and potentially best option is to keep your employer coverage and enroll in Medicare at the same time. This will provide the most overall coverage.
With both plans active, your employer coverage will act as either your primary or secondary insurer, Medicare as the other. The primary will contribute its share of the cost of the benefit first, then the secondary with its share. Through this model, almost all of your costs will be taken care of.
When Your Employer Coverage Ends
But what happens when you retire and or your employer coverage ends? If you have both, Medicare will just become your sole plan. If you haven’t enrolled in Medicare, you will have 6 months to do so.
This is called a Special Enrollment Period (SEP). If you don’t take advantage of it, you may then be charged with late fees. Whether or not you decide to enroll in one plan or both, you need to put your budget and coverage needs at the forefront.
Have Medicare Questions?
We’re Here to Help!
If you’re interested in learning more about Medicare, we can provide you with the answers you’re looking for. To learn more about how we can help you, call Shepherd Health and Wellness Benefits today.
The purpose of this website is to provide general information on Medicare, Medicare Advantage, Medicare Supplement, Medicare Part D, and other health insurance related information. At Shepherd Health and Wellness Benefits, we believe that everyone should have access to the information needed to make an informed, confident decision about their healthcare. Calling the number on this site will connect you to a licensed insurance agent.
Shepherd Health and Wellness Benefits has researched government websites and publications in an effort to provide you with information. We believe the sources we use to provide information to be reliable. However, we do not guarantee or warrant the accuracy of this information. All materials on this site are for informational purposes only. The contents of this website are subject to change without notice. If you would like to find more information about the Government Medicare program, please visit the Official U.S. Government website for Medicare, located at medicare.gov.
Shepherd Health and Wellness Benefits is not connected with, affiliated with, or endorsed by the United States government, the Federal Medicare program, or a state agency. Medicare has not reviewed nor endorsed this information. Products sold by our team are backed by the insurance company’s guaranteed association and underwriting powers.
We are not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.