Below are our frequently asked questions. For more information, please contact us for a consultation.

 

Q: I am turning 65 this year and I plan to retire. When am I eligible to enroll into Medicare?

Your Initial Enrollment Period is the 7-months surrounding your 65th birthday. It includes the 3 months before your birthday, the month of your birthday, and the 3 months after your birthday. Assuming you have met the work-related eligibility requirements, you may begin your enrollment 90 days prior to the first day of the month in which you turn 65. (Exception – if your birthdate falls on the first day of the month, then your Medicare becomes effective the first day of the month prior to the month in which you turn 65.) For example, if your birthdate is 05/01/1956, you are eligible to enroll in Medicare A & B on 04/01/2021. If your birthdate is 05/02/1956, then you are eligible to enroll in Medicare A & B on 05/01/2021.

If you do not enroll in Part A & B prior to the month of your birthday, your coverage may not be effective right away. See the chart below to see the effective dates if you submit your application during or after your birth month.

If you enroll during this month of your initial enrollment period: Your coverage will begin:
The month you turn 65 1 month after you enroll
1 month after you turn 65 2 months after enrollment
2 months after you turn 65 3 months after enrollment
3 months after you turn 65 3 months after enrollment
A: Medicare does not have spousal or dependent coverage. Your spouse will enroll in their own individual Medicare A & B and related Medicare plans.
A: Maybe. If the employer group has 20 eligible employees or more and you’re going to continue to work, you may enroll in Medicare Part A only and defer enrollment in Medicare Part B until you are ready to retire from that employer.
A: Yes, if you are currently enrolled in an “Individual” health plan or your employer has less than 20 eligible employees, you must enroll in Medicare Part A & B because they are your Primary Payer of your claims. Also, if you are currently drawing Social Security benefits or on Social Security Disability, you will be automatically enrolled in Medicare A & B.

**No, if you are enrolled in a Health Savings Account (HSA) plan, you cannot enroll in Medicare Part A or Part B or your contributions into the HSA Bank Account will not be qualified.
A: Yes, you will need to enroll in Medicare Part A & B as they will be your Primary Payer of your claims and the “Retiree” health plan will be your Secondary Payer of claims.
A: Medicare Part D is the prescription drug plan benefits for Medicare eligible individuals. Centers for Medicare and Medicaid Services (CMS) passes the regulations for the prototype Medicare Part D plan and provides those guidelines to the private insurance carriers to market the plans. They must offer Part D plans that are “actuarially” equivalent to or exceed the (CMS) plan.
A: Yes, for each month that you are “eligible” to enroll and do not enroll, there is a 1% penalty per month up to a maximum 12% per calendar year. If you lose your creditable prescription coverage, you have 63 days to enroll in a Part D plan without penalty. At the point you enroll in a Part D plan, the calculation of penalty will stop and you will be paying the last calculated Part D penalty for life.
A: Depending upon your current type of insurance coverage, you may incur a Part B 10% penalty for each 12-month period you did not enroll in Part B. Also, you are allowed to enroll in Medicare Part A & B only during the General Enrollment Period from January 1 – March 31 each year for a July 1 effective date.
A: If your Medicare Part A & B are effective on or the day prior to you enrolling in COBRA, you can keep your COBRA benefits, but Medicare Part A & B are Primary Payers of your claims. COBRA is not considered “creditable” coverage because you are not “actively” employed. When you enroll in Medicare Part A & B, and your spouse is not yet Medicare eligible, your spouse will have a special enrollment period that may qualify them for up to 36 months of COBRA coverage or until they become Medicare eligible, the lesser of. **You may also incur the Part B late enrollment penalty if you do not enroll within the 8-month special enrollment period after losing your employer group health plan.
A: If you are already eligible for Medicare Part A & B and you become COBRA eligible, your COBRA benefits may end. Medicare Part A & B are still your Primary Payers of your claims. COBRA is not considered “creditable” coverage because you are not “actively” employed. When you enroll in Medicare Part A & B, and your spouse is not yet Medicare eligible, your spouse will have a special enrollment period that may qualify them for up to 36 months of COBRA coverage or until they become Medicare eligible, the lesser of. **You may also incur the Part B late enrollment penalty if you do not enroll within the 8-month special enrollment period after losing your employer group health plan.
A: Severance packages can create chaos with your Medicare benefits if you are not aware! You can defer your Medicare Part D enrollment, assuming your group health plan provides “creditable” Part D benefits. With Medicare Part B, you MUST enroll in Part B within 8 months after your termination date or else you will incur a 10% Part B penalty for life for each 12-month period you were eligible to enroll and did not enroll. **You may also have to wait to enroll in Part A & B during the General Enrollment Period from January 1 – March 31 for a July 1 effective date.
A: Once you become eligible for Medicare, you can defer your Medicare Part D enrollment, assuming your group health plan provides “creditable” Part D benefits. With Medicare Part B, you must enroll within 8 months from your termination date or else you will incur a 10% Part B penalty for life for each 12-month period you were eligible to enroll and did not enroll. **You may also have to wait to enroll in Part A & B during the General Enrollment Period from January 1 – March 31 for a July 1 effective date.