Advocate for Employers
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Advocate for Employers
Employees used to rely on health insurance only when they were sick. Today more people depend on our guidance to live healthier lives and make better health choices. For employers, we know it is not always possible to give your employees the health coverage they need for retirement. That is why we have made it easy for business owners like you to provide your valued employees the information they need for planning a healthy retirement.
Employer Strategies for Medicare
For employees turning 65
Plan ahead to learn what steps to take PRIOR to turning 65 and changing insurance from your employer coverage to Medicare.
For employees 65 and older
Learn what you need to do to switch from employer coverage to Medicare if you are older than 65.
Frequently Asked Questions
Yes you can.
- If you work for an employer with less than 20 employees, then Medicare will be primary and your employer coverage will be secondary and act as supplemental coverage. If the employer coverage includes what is considered to be “creditable” medication coverage, then you don’t have to purchase a separate Medication or Part D plan. If the coverage is NOT “creditable”, then you will have to purchase a stand-alone Part D Plan (PDP) and pay the corresponding monthly PDP premium.
- If you work for an employer with more than 20 employees, then Medicare will be secondary and will be considered supplemental coverage to the employer coverage; the employer plan coverage will apply first, along with all of its out of pocket costs, i.e. deductibles, co-payments, etc.
If you don’t apply for Medicare Part A and B during your Initial Enrollment Period, which is 3 months before your 65th birthday, the month of your birthday, or 3 months after your birthday month, then you will be penalized by Social Security.
The only way you will NOT be penalized is if you did not apply for Part A and/or Part B because you had creditable employer coverage. If you had it, you will need to supply the CMS-L564E form to provide proof that you had coverage during the entire period past your Initial Enrollment period.