Enrolling in Medicare Part A & B

[somarco]

I run into a lot a few people who do not enroll in Part A when first eligible due to having employer insurance.

Part A is "free" for most people and pays nothing if your other plan is primary. If you aren't enrolled in A you can't receive your SS benefit. When you do enroll you might be subject to a penalty. Seems like a lot of potential traps to delay something that is "free".

Under the current rule, any retiree who opts out of Part A also forfeits all past and future Social Security retirement benefits. This means that seniors would stop receiving a Social Security check and would be required to repay any benefits received prior to disenrolling from Part A.

COBRA is not creditable.

That's a new one on me. COBRA is the same coverage as your group plan. It is technically a group plan for one but is not the same as an individual plan.

In some cases the group drug plan may not be considered creditable which can trigger a penalty on Part D but never heard of COBRA not being creditable for pre-ex purposes (Medigap).

 

[WCMason]

Part A is "free" for most people and pays nothing if your other plan is primary. If you aren't enrolled in A you can't receive your SS benefit. When you do enroll you might be subject to a penalty. Seems like a lot of potential traps to delay something that is "free". That's a new one on me. COBRA is the same coverage as your group plan. It is technically a group plan for one but is not the same as an individual plan. In some cases the group drug plan may not be considered creditable which can trigger a penalty on Part D but never heard of COBRA not being creditable for pre-ex purposes (Medigap).

The discussion was regarding Part B. COBRA is not creditable to avoid a late enrollment penalty for Part B. It is creditable for Part D (assuming it meets the minimum standard) and for GI in a med supp.

There is no penalty for postponing Part A. When someone applies for SS benefits they're automatically signed up for Part A if not already enrolled.

 

[bluediamond]

Just reading general articles on yahoo and came across this: I had no idea if this is correct.

But when Dan went to a doctor, the COBRA insurance provider refused to cover what Medicare would have paid, saying that the couple should have signed up right after his layoff. Joyce wrote to us, asking how that could happen.

Read more about Medicare and signing up for health insurance, and get rankings of health insurance plans.

Turns out the company was right: Federal Medicare regulations say that once a person age 65 or older ceases “current” employment, any other type of insurance, including COBRA, kicks in only after Medicare pays its share. If there’s no Medicare coverage, the insurer is under no obligation to pay Medicare’s portion—even during that eight-month grace period.

Link to whole article:http://finance.yahoo.com/news/dont-medicare-mistake-140000902.html

This is what I've told all retiree's for 19 years:

Our advice: If you are over age 65 and about to leave a job, sign up for Medicare before your last day so that it’s in place before your workplace coverage ends. (The same is true for Medicare-aged spouses covered under the employer’s plan.) At that point, COBRA is generally not worth the money. One-on-one counseling is available free through your state’s

 

[WCMason]

Just reading general articles on yahoo and came across this: I had no idea if this is correct. But when Dan went to a doctor, the COBRA insurance provider refused to cover what Medicare would have paid, saying that the couple should have signed up right after his layoff. Joyce wrote to us, asking how that could happen. Read more about Medicare and signing up for health insurance, and get rankings of health insurance plans. Turns out the company was right: Federal Medicare regulations say that once a person age 65 or older ceases "current" employment, any other type of insurance, including COBRA, kicks in only after Medicare pays its share. If there's no Medicare coverage, the insurer is under no obligation to pay Medicare's portion--even during that eight-month grace period. Link to whole article:http://finance.yahoo.com/news/dont-medicare-mistake-140000902.html This is what I've told all retiree's for 19 years: Our advice: If you are over age 65 and about to leave a job, sign up for Medicare before your last day so that it's in place before your workplace coverage ends. (The same is true for Medicare-aged spouses covered under the employer's plan.) At that point, COBRA is generally not worth the money. One-on-one counseling is available free through your state's

This is very good. While I knew that COBRA terminates when one reaches Medicare eligibility but those already entitled to Medicare are eligible to take COBRA, I had never heard that COBRA was secondary for Medicare-eligible beneficiaries and would not pay what Medicare should have. So I'll amend my first reply to the OP: OK to take the six months of free COBRA, but enroll in Part B and use the free COBRA as secondary. Be sure to enroll in a med supp before the six months ends.

 

[somarco]

I think it is refreshing what we can learn from others on this forum. This kind of ready access to information did not exist when Blue and I were beginning our career.

 

[bluediamond]

No the information did not exist S and it is good, if I had not been reading articles on yahoo last night I would never have seen it. I never knew that either. I knew there was a reason I told everyone to apply for it before losing regular group coverage and btw thank you on that PM.

 

[BeeSelective]

Those Receiving COBRA Coverage Must Sign Up for Medicare Part B at 65 to Avoid Penalty

If you are receiving health coverage from your employer when you reach age 65, the age at which most people enroll in Medicare, you may be able to delay enrolling in Medicare Part B without penalty, depending on your coverage. But not if your employer health coverage is being continued under COBRA. If this is the case, you must sign up for Medicare Part B when you first become eligible, and perhaps for Part D as well, to avoid penalties.


As the Center points out, that penalty can be severe: there is a 10 percent premium penalty for each year that enrollment is delayed. For example, if you turn 65 this year (2015) but wait until 2017 to enroll in Medicare, your monthly Part B premium will be 20 percent higher than the current premium -- for your lifetime. Instead of the current premium of $104.90.90 a month, you would pay almost $126 a month.

The interaction between COBRA and Medicare Part D, which covers prescription drugs, is a little different. Those on COBRA may be able to delay Part D enrollment without penalty if the drug coverage they had under COBRA constitutes “creditable coverage,”which means that the coverage is expected to pay on average as much as the standard Medicare prescription drug coverage.

Those Receiving COBRA Coverage Must Sign Up for Medicare Part B at 65 to Avoid Penalty | ElderLawAnswers

 

[steveadlman]

Great information! I have advised the prospect who called my office that her and her husband need to go ahead and sign up for Part B.

 

[DCN]

They probably have A and don't realize it. In 4 years, speaking with 1000s of beneficiaries through inside sales position and broker sales, I don't really recall ONE person that didn't have it when turning 65, honestly. Cobra DEFINITELY is not considered creditable. I don't understand myself, I agree that it's the same as when they were working, but I'm 100% sure that's the case. They have the right to enroll in B from retiring and losing the employer coverage, but I believe that window is the month it ends, plus the month after. Any delay, and they will have to wait until the Part B open enrollment period, which is Jan 1 - Feb 14th(I think it's the same as the ADP) each year for a July 1 start date. Also, no point and riding that Cobra pony for as long as they can. I'd bet money that the premium is outrageous for the two of them. Get B for the 126/month and get a 0/month MAPD and save your clients lots of money.

 

[WCMason]

They probably have A and don't realize it. In 4 years, speaking with 1000s of beneficiaries through inside sales position and broker sales, I don't really recall ONE person that didn't have it when turning 65, honestly. Cobra DEFINITELY is not considered creditable. I don't understand myself, I agree that it's the same as when they were working, but I'm 100% sure that's the case. They have the right to enroll in B from retiring and losing the employer coverage, but I believe that window is the month it ends, plus the month after. Any delay, and they will have to wait until the Part B open enrollment period, which is Jan 1 - Feb 14th(I think it's the same as the ADP) each year for a July 1 start date. Also, no point and riding that Cobra pony for as long as they can. I'd bet money that the premium is outrageous for the two of them. Get B for the 126/month and get a 0/month MAPD and save your clients lots of money.

The enrollment window to get Part B when employer coverage ends is eight months, not the month it ends plus one month.

The General Enrollment Period is the months of January through March. It does not match ADP.

The standard Part B premium is $121.80, not $126.

A zero premium MAPD may cost the clients thousands depending on health and cause them to lose doctors. It should never be the assumed right choice.

Otherwise spot on.