Medicare part B question

[vic120]

Can someone apply for Medicare Part B at anytime when still working?

In other words if someone is 66 and working but just wants to change and go onto Medicare can they do that?
Is their a time of year they can do it, or if they past the T65 are they stuck till they stop working?

 

[Tscholar]

Can someone apply for Medicare Part B at anytime when still working?

In other words if someone is 66 and working but just wants to change and go onto Medicare can they do that?
Is their a time of year they can do it, or if they past the T65 are they stuck till they stop working?

Yes, as long as they have creditable coverage as good as Medicare and they work for a company with 20 or more employees.

 

[Special Agent]

Can someone apply for Medicare Part B at anytime when still working?

In other words if someone is 66 and working but just wants to change and go onto Medicare can they do that?
Is their a time of year they can do it, or if they past the T65 are they stuck till they stop working?

if your advising them make sure to ask them if they have an HSA because if they sign up for medicare less than 6 months after last contributions it will cause problems .

"Under current regulations, individuals who apply for Medicare Part A or Part B after reaching age 65 are automatically given six months of retroactive health coverage, which invalidates their ability to make or receive HSA contributions for any of those months they were deemed to be covered."

 

[yorkriver1]

One caveat: if we are talking about getting Medicare Part B and leaving employer coverage, there may be a narrow window for leaving the employer plan once Part B is active, like, say, 30 days. I heard of a situation where the employee forgot to notify benefits HR within the 30 day window and had to stay on their medical plan for the rest of the calendar year, which was also the employer plan year.
If there are 19 or fewer employees, they would be required to have Part A and B to continue employer group coverage where by federal law Medicare is primary.
20 and over usually can drop out any time after age 65 once A&B are in place, but checking with how HR deals with timing of reporting, etc. is a good idea. The federal law doesn't prohibit employers from doing some restrictions there on timing to drop out of coverage.

 

[LostDollar]

I couldn't point to a specific thread at the moment, but I am pretty sure that there have been some threads where the comment was made that the employee would have to (and could legally be required to) wait until open enrollment to drop the employer coverage.

 

[yorkriver1]

I couldn't point to a specific thread at the moment, but I am pretty sure that there have been some threads where the comment was made that the employee would have to (and could legally be required to) wait until open enrollment to drop the employer coverage.

They could do that, but not all employers do. The IRS rules say they have the option either way. Social Security allows the dropping out of group coverage for Medicare to be valid any month after 65, but the Section 125 rules that say employers aren't required to follow all of the opt out options are the ones that can be the sticking point. When employers/employees have the employee cost for insurance set up "pre-tax", the IRS rules are in general only certain events allow an employee to drop group coverage outside open enrollment. Birth, adoption, marriage, death, divorce. And, of course turning 65 can be any month, or only at open enrollment. In addition, it can be, say, a 30 day window from the start date of Medicare, similar to marriage or birth. Also the IRS rules allow some leeway with employers to accept, modify or deny the age 65 opt out other than at open enrollment for Medicare, which is what you are referencing. The past couple of open enrollment meetings I have had, I joked that signing up for the employer group coverage at open enrollment is like Hotel California, you can sign up but you can't leave. Some these days don't get the reference. Some in HR have to be pressed to look up in their summary plan description document how Medicare eligibility is handled for opting out timing.

 

[LostDollar]

They could do that, but not all employers do. The IRS rules say they have the option either way. Social Security allows the dropping out of group coverage for Medicare to be valid any month after 65, but the Section 125 rules that say employers aren't required to follow all of the opt out options are the ones that can be the sticking point. When employers/employees have the employee cost for insurance set up "pre-tax", the IRS rules are in general only certain events allow an employee to drop group coverage outside open enrollment. Birth, adoption, marriage, death, divorce. And, of course turning 65 can be any month, or only at open enrollment. In addition, it can be, say, a 30 day window from the start date of Medicare, similar to marriage or birth. Also the IRS rules allow some leeway with employers to accept, modify or deny the age 65 opt out other than at open enrollment for Medicare, which is what you are referencing. The past couple of open enrollment meetings I have had, I joked that signing up for the employer group coverage at open enrollment is like Hotel California, you can sign up but you can't leave. Some these days don't get the reference. Some in HR have to be pressed to look up in their summary plan description document how Medicare eligibility is handled for opting out timing.

Thank you for all the comments.

(I'm the "right" age, but I was not much into music so I am not sure I would pick up the reference either.