A guy called today. Age 64, T65 in November. Lost his job a few months ago and decided to take early SSA. But if he get's a job he will stop SSA and wait until "retirement age".
He is covered under his wife's Obamacare KP plan and wants to keep it instead of Medicare.
So many bad decisions here . . .
My email response . . .
Most of the stuff done in DC is illogical and never designed to make sense. Much defies explanation. The rules regarding SSA and Medicare are torturous at best. Here goes.
Summarizing Medicare, Obamacare and SSA . . .
Obamacare plans are appealing but you are not allowed to have any part of Medicare while on an Obamacare plan. You could sign up for health coverage through your spouse's health plan if that option is available. Better still, you may be eligible for health care based on your military experience, whether through the VA or TRICARE.
In these cases, you may be tempted to decline Medicare in favor of another insurance. After all, no one wants to pay two premiums if they don't have to. However, you need to understand that declining Medicare can have serious repercussions.
If you decline Part A coverage, you could lose your Social Security benefits. This could include your retirement benefits or even benefits from SSDI. Not only will you lose the future income from Social Security but you will have to pay back any Social Security benefits you received up to the time you declined Part A.
https://www.verywellhealth.com/do-not-refuse-medicare-when-you-are-on-ssdi-2318713
Withdrawing from SSA
If you change your mind about starting your benefits, you can cancel your application for up to 12 months after you become entitled to retirement benefits. This process is called a withdrawal. You can reapply later.
You are limited to one withdrawal per lifetime.
If you cannot withdraw your application and you have reached full retirement age but are not yet 70, you can ask us to suspend benefit payments.
Fill out Social Security Form SSA-521. Include the reason why you want to withdraw the application on the form.
If you already have Medicare, your request must also clearly state whether your Medicare coverage should or should not be included in the withdrawal.
Send the completed form to your local Social Security office. We will notify you when there is a decision about your request and let you know the amount of benefits you need to repay.
You have 60 days to cancel an approved withdrawal. After that, you will lose any possible entitlement for the period covered by your original application.
What Happens When You Withdraw Your Application
You must repay all the benefits you and your family received from your retirement application.
If you are already entitled to Medicare, you may choose to also withdraw your Medicare coverage.
Withdrawing Both Social Security and Medicare Benefits
You must repay all Medicare Part A benefits paid on your behalf.
If you file for benefits and Medicare again later, your Part B premiums may be higher due to your late enrollment.
Withdrawing from Medicare Part A or Medicare Part B can also affect your coverage under a Medicare Advantage plan
Your Medicare Advantage enrollment will automatically end if you withdraw from Medicare Part A, Part B, or both.
You will no longer be eligible for Medicare Part D if you withdraw from Medicare Part A and Part B. You will pay a penalty if you enroll in Medicare Part D in the future.
You may need to have a personal interview if you want to terminate Part B.
https://www.ssa.gov/benefits/retirement/planner/withdrawal.html
If you follow all this give yourself a gold star!
Yes, you CAN withdraw from SS but with stipulations and conditions. It won't be easy or quick.
You said your KP plan was an individual (Obamacare) plan, not group insurance. Per the above you can't keep Obamacare once you turn 65. If it is a group plan you can remain as a dependent but you may not want to. Medicare may be less expensive and better coverage. Even if you want to remain on the group insurance plan you may be required to enroll in Medicare.
Convoluted and defies an explanation as to WHY it happens this way.
He is covered under his wife's Obamacare KP plan and wants to keep it instead of Medicare.
So many bad decisions here . . .
My email response . . .
Most of the stuff done in DC is illogical and never designed to make sense. Much defies explanation. The rules regarding SSA and Medicare are torturous at best. Here goes.
Summarizing Medicare, Obamacare and SSA . . .
Obamacare plans are appealing but you are not allowed to have any part of Medicare while on an Obamacare plan. You could sign up for health coverage through your spouse's health plan if that option is available. Better still, you may be eligible for health care based on your military experience, whether through the VA or TRICARE.
In these cases, you may be tempted to decline Medicare in favor of another insurance. After all, no one wants to pay two premiums if they don't have to. However, you need to understand that declining Medicare can have serious repercussions.
If you decline Part A coverage, you could lose your Social Security benefits. This could include your retirement benefits or even benefits from SSDI. Not only will you lose the future income from Social Security but you will have to pay back any Social Security benefits you received up to the time you declined Part A.
https://www.verywellhealth.com/do-not-refuse-medicare-when-you-are-on-ssdi-2318713
Withdrawing from SSA
If you change your mind about starting your benefits, you can cancel your application for up to 12 months after you become entitled to retirement benefits. This process is called a withdrawal. You can reapply later.
You are limited to one withdrawal per lifetime.
If you cannot withdraw your application and you have reached full retirement age but are not yet 70, you can ask us to suspend benefit payments.
Fill out Social Security Form SSA-521. Include the reason why you want to withdraw the application on the form.
If you already have Medicare, your request must also clearly state whether your Medicare coverage should or should not be included in the withdrawal.
Send the completed form to your local Social Security office. We will notify you when there is a decision about your request and let you know the amount of benefits you need to repay.
You have 60 days to cancel an approved withdrawal. After that, you will lose any possible entitlement for the period covered by your original application.
What Happens When You Withdraw Your Application
You must repay all the benefits you and your family received from your retirement application.
If you are already entitled to Medicare, you may choose to also withdraw your Medicare coverage.
Withdrawing Both Social Security and Medicare Benefits
You must repay all Medicare Part A benefits paid on your behalf.
If you file for benefits and Medicare again later, your Part B premiums may be higher due to your late enrollment.
Withdrawing from Medicare Part A or Medicare Part B can also affect your coverage under a Medicare Advantage plan
Your Medicare Advantage enrollment will automatically end if you withdraw from Medicare Part A, Part B, or both.
You will no longer be eligible for Medicare Part D if you withdraw from Medicare Part A and Part B. You will pay a penalty if you enroll in Medicare Part D in the future.
You may need to have a personal interview if you want to terminate Part B.
https://www.ssa.gov/benefits/retirement/planner/withdrawal.html
If you follow all this give yourself a gold star!
Yes, you CAN withdraw from SS but with stipulations and conditions. It won't be easy or quick.
You said your KP plan was an individual (Obamacare) plan, not group insurance. Per the above you can't keep Obamacare once you turn 65. If it is a group plan you can remain as a dependent but you may not want to. Medicare may be less expensive and better coverage. Even if you want to remain on the group insurance plan you may be required to enroll in Medicare.
Convoluted and defies an explanation as to WHY it happens this way.
