Are you turning 65 and still employed? Should you sign up for Medicare or continue your employer’s healthcare plan? In this interview with Lance Otey, a health insurance expert in the Dallas-Ft. Worth area, we discuss some options you have when turning 65 and still covered by your employer’s health plan.
If you are 65 and still employed, you have many options when it comes to your health insurance coverage. The right choice for you will depend on your personal needs and situation. Some additional questions you should consider are the cost of coverage, your healthcare needs, how long you intend to work, and the insurance situation for your spouse. A trusted Medicare advisor can help you weigh your options and make the decision that is right for you.
If you choose to remain on your employer-sponsored plan, but later decide to switch to Medicare, the good news is that you can do this without a penalty. If you stay on your employer’s plan until you retire, you will have a special enrolment period that lasts two full months after your former employer’s coverage ends. You can transition to Medicare during this special enrollment period without paying any late enrollment penalty.
In rare cases, you may opt to keep your employer-sponsored insurance and have Medicare. A situation where this may make sense is if your employer pays 100% of the cost of your employer’s plan. If you end up choosing to have both your employer’s health plan and Medicare, one of them will be considered “primary” and the other “secondary”. The determination of which is “primary” and which is “secondary” is called a “coordination of benefits”, and will depend on how your employer’s coverage interacts with Medicare.
If you need help weighing your options between your employer’s health plan and Medicare, and how this can impact your overall financial plan, please reach out to us today!