Medicare — but company insurance at age 75
Hi Terry,
My wife and I are 75 and have kept our employer’s insurance since we retired. We were told that there would be no penalty to sign up for Medicare at any point. Now, we have heard the opposite. Getting concerned.
Thank You.
Terry Says
Immediately contact the HR department of your former employer. Rarely are plans that generous to retirees. Ask the HR department if this insurance is “comparable” to Medicare — They will know if Medicare considers this comparable care.
And even if it is, you can also compare the cost of Medicare and a supplement for each of you, to what you are paying for your retiree health insurance.
If it IS comparable, then you have no penalty — and can switch to traditional Medicare during open enrollment this fall (or at any time you might lose coverage by withdrawing from the plan). That is considered an “event” for allowing open enrollment at any time.
But at that point be sure to each sign up for Supplement Plan G, since you cannot be turned down within 6 months of your initial enrollment, regardless of health.
And you’ll also need to sign up for Part D — drugs, immediately.
Please write back and let me know how this turns out. If, in fact, this is NOT comparable coverage to Medicare,then indeed you will be facing a big penalty — and the company might be responsible.
