Medicare while still employed

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Barkingsparrow
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Medicare while still employed

Post by Barkingsparrow »

I carry the health insurance for both my wife and I, and had been planning to retire at the end of this year and then go onto her health insurance until she retired sometime in 2024.

However, I'm going to do the OMY deal due to concerns about her job security and the fact that I just really enjoy my job and don't have a compelling desire to retire just yet.

I will turn 65 late next year. My understanding is that I need to go ahead and apply for Part A (we plan to use Traditional Medicare when we both are on Medicare full-time) and can add in the remaining parts when I/we both retire.

Has anyone done this? Are there additional steps/paperwork/requirements once you move to full traditional Medicare after age 65?
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ResearchMed
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Re: Medicare while still employed

Post by ResearchMed »

Barkingsparrow wrote: Thu Sep 22, 2022 3:52 pm I carry the health insurance for both my wife and I, and had been planning to retire at the end of this year and then go onto her health insurance until she retired sometime in 2024.

However, I'm going to do the OMY deal due to concerns about her job security and the fact that I just really enjoy my job and don't have a compelling desire to retire just yet.

I will turn 65 late next year. My understanding is that I need to go ahead and apply for Part A (we plan to use Traditional Medicare when we both are on Medicare full-time) and can add in the remaining parts when I/we both retire.

Has anyone done this? Are there additional steps/paperwork/requirements once you move to full traditional Medicare after age 65?
Editing per TT's correction below!

We are doing this.
We signed up for Medicare A several years ago, but we still have Employer healthcare (that was per instructions from Employer).

NOTE: My understanding is that if you sign up for Medicare at all, including just A, then you can not also continue with an HSA High Deductible plan, but *check* on how that works, as it doesn't affect us, so I haven't kept up with the details.

Later, when we are no longer eligible for Employer health insurance, we'll both switch to Medicare A and B, and then also have Retiree coverage as the "add on".

You need to make SURE that your or your wife's Employer health insurance is a "creditable plan". I think there is a form one gets from the Employer at the time of the change, and that documents the creditable coverage.

I'm not sure what purpose getting A is before full switch to Medicare, including B.
A is for hospital inpatient care, I think. But I've been hospitalized twice after signing up for "A", and we haven't seen any sign of "Medicare A" paying anything. Perhaps it's all behind the scenes and just paid directly to reimburse the Employer plan... :confused

RM
Last edited by ResearchMed on Thu Sep 22, 2022 4:37 pm, edited 1 time in total.
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TomatoTomahto
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Re: Medicare while still employed

Post by TomatoTomahto »

ResearchMed wrote: Thu Sep 22, 2022 4:29 pm
Barkingsparrow wrote: Thu Sep 22, 2022 3:52 pm I carry the health insurance for both my wife and I, and had been planning to retire at the end of this year and then go onto her health insurance until she retired sometime in 2024.

However, I'm going to do the OMY deal due to concerns about her job security and the fact that I just really enjoy my job and don't have a compelling desire to retire just yet.

I will turn 65 late next year. My understanding is that I need to go ahead and apply for Part A (we plan to use Traditional Medicare when we both are on Medicare full-time) and can add in the remaining parts when I/we both retire.

Has anyone done this? Are there additional steps/paperwork/requirements once you move to full traditional Medicare after age 65?

We are doing this.
We signed up for Medicare A several years ago, but we still have Employer healthcare (that was per instructions from Employer).

NOTE: My understanding is that if you sign up for Medicare at all, including just A, then you can not also continue with a High Deductible plan, but *check* on how that works, as it doesn't affect us, so I haven't kept up with the details.

Later, when we are no longer eligible for Employer health insurance, we'll both switch to Medicare A and B, and then also have Retiree coverage as the "add on".

You need to make SURE that your or your wife's Employer health insurance is a "creditable plan". I think there is a form one gets from the Employer at the time of the change, and that documents the creditable coverage.

I'm not sure what purpose getting A is before full switch to Medicare, including B.
A is for hospital inpatient care, I think. But I've been hospitalized twice after signing up for "A", and we haven't seen any sign of "Medicare A" paying anything. Perhaps it's all behind the scenes and just paid directly to reimburse the Employer plan... :confused

RM
We will be doing this shortly, but I thought that the prohibition wasn’t about a High Deductible plan but rather contributing to a HSA, which you can’t do while on Medicare.
I get the FI part but not the RE part of FIRE.
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ResearchMed
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Re: Medicare while still employed

Post by ResearchMed »

TomatoTomahto wrote: Thu Sep 22, 2022 4:32 pm
ResearchMed wrote: Thu Sep 22, 2022 4:29 pm
Barkingsparrow wrote: Thu Sep 22, 2022 3:52 pm I carry the health insurance for both my wife and I, and had been planning to retire at the end of this year and then go onto her health insurance until she retired sometime in 2024.

However, I'm going to do the OMY deal due to concerns about her job security and the fact that I just really enjoy my job and don't have a compelling desire to retire just yet.

I will turn 65 late next year. My understanding is that I need to go ahead and apply for Part A (we plan to use Traditional Medicare when we both are on Medicare full-time) and can add in the remaining parts when I/we both retire.

Has anyone done this? Are there additional steps/paperwork/requirements once you move to full traditional Medicare after age 65?

We are doing this.
We signed up for Medicare A several years ago, but we still have Employer healthcare (that was per instructions from Employer).

NOTE: My understanding is that if you sign up for Medicare at all, including just A, then you can not also continue with a High Deductible plan, but *check* on how that works, as it doesn't affect us, so I haven't kept up with the details.

Later, when we are no longer eligible for Employer health insurance, we'll both switch to Medicare A and B, and then also have Retiree coverage as the "add on".

You need to make SURE that your or your wife's Employer health insurance is a "creditable plan". I think there is a form one gets from the Employer at the time of the change, and that documents the creditable coverage.

I'm not sure what purpose getting A is before full switch to Medicare, including B.
A is for hospital inpatient care, I think. But I've been hospitalized twice after signing up for "A", and we haven't seen any sign of "Medicare A" paying anything. Perhaps it's all behind the scenes and just paid directly to reimburse the Employer plan... :confused

RM
We will be doing this shortly, but I thought that the prohibition wasn’t about a High Deductible plan but rather contributing to a HSA, which you can’t do while on Medicare.
Ooops! I think you are correct. Thanks! I'll correct my post above.
(Like I wrote, we aren't personally familiar with that, Duh!).

Thanks for the catch!

RM
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TomatoTomahto
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Re: Medicare while still employed

Post by TomatoTomahto »

^ Welcome :D
I get the FI part but not the RE part of FIRE.
RetiredAL
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Re: Medicare while still employed

Post by RetiredAL »

Barkingsparrow wrote: Thu Sep 22, 2022 3:52 pm I carry the health insurance for both my wife and I, and had been planning to retire at the end of this year and then go onto her health insurance until she retired sometime in 2024.

However, I'm going to do the OMY deal due to concerns about her job security and the fact that I just really enjoy my job and don't have a compelling desire to retire just yet.

I will turn 65 late next year. My understanding is that I need to go ahead and apply for Part A (we plan to use Traditional Medicare when we both are on Medicare full-time) and can add in the remaining parts when I/we both retire.

Has anyone done this? Are there additional steps/paperwork/requirements once you move to full traditional Medicare after age 65?
Before you wife retires, that is a Medicare Form for her employer (HR staff) to fill out stating that you and she had credible insurance from that employer, otherwise there could be a Part B and Part D penalty for not signing up on a timely basis. I think it was form CMS-L564.

I retired at 66. I took Medicare A at 65, as my employer required that. Before I left at 66, I had HR fill out the form. DW turned 65 the month I retired and she signed up for A, B, and D in a single sitting.
Topic Author
Barkingsparrow
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Re: Medicare while still employed

Post by Barkingsparrow »

ResearchMed wrote: Thu Sep 22, 2022 4:29 pm
I'm not sure what purpose getting A is before full switch to Medicare, including B.

A is for hospital inpatient care, I think. But I've been hospitalized twice after signing up for "A", and we haven't seen any sign of "Medicare A" paying anything. Perhaps it's all behind the scenes and just paid directly to reimburse the Employer plan... :confused

RM
My understanding is that my corporate health insurance is considered primary and the Plan A is secondary. I don't have a HSA, so signing up does not cost me anything and being at a large corporation, I'm sure it's no doubt considered creditable.
Evergreen2022
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Re: Medicare while still employed

Post by Evergreen2022 »

There isn’t a downside, except you can no longer contribute to an HSA. Be careful if contributing at all in the calendar year you turn 65, I think there’s a pro-rata contribution limit, if say, you get Medicare in October. Having Medicare Part A shouldn’t change anything on your health insurance.

When your wife retires it’s the simple form listed above that says you’ve had credible coverage from xx/xx/xxxx- retirement. This is to avoid any penalties.

The upside is you will have a Medicare card and Medicare number in advance. Recently, I have been hearing of people getting their Medicare card within days of needing it (rather than 3 months out). When you activate Part B your Medicare number won’t change but they will send you a new card that has the Part B Effective Date on it.
Duzz78
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Re: Medicare while still employed

Post by Duzz78 »

Barkingsparrow wrote: Thu Sep 22, 2022 5:33 pm
ResearchMed wrote: Thu Sep 22, 2022 4:29 pm
I'm not sure what purpose getting A is before full switch to Medicare, including B.

A is for hospital inpatient care, I think. But I've been hospitalized twice after signing up for "A", and we haven't seen any sign of "Medicare A" paying anything. Perhaps it's all behind the scenes and just paid directly to reimburse the Employer plan... :confused

RM
My understanding is that my corporate health insurance is considered primary and the Plan A is secondary. I don't have a HSA, so signing up does not cost me anything and being at a large corporation, I'm sure it's no doubt considered creditable.
My husband retired from a large corporation. 85k plus employees. He has Traditional Medicare Part A and his supplemental plan through his employer.

His prescription drug plan with his employer is not creditable by Medicare standards. So he is on a Medicare Part D plan as well.

The second sentence in his company retiree Medicare booklet in the drugs section stated that clearly. You can also verify with your retiree Medicare portion of your company.
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ResearchMed
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Re: Medicare while still employed

Post by ResearchMed »

Duzz78 wrote: Fri Sep 23, 2022 7:27 pm My husband retired from a large corporation. 85k plus employees. He has Traditional Medicare Part A and his supplemental plan through his employer.

His prescription drug plan with his employer is not creditable by Medicare standards. So he is on a Medicare Part D plan as well.

The second sentence in his company retiree Medicare booklet in the drugs section stated that clearly. You can also verify with your retiree Medicare portion of your company.

That's interesting about only having Medicare Part A plus the Employer Plan. That's a "retiree" plan, correct? So no Medicare B?
I hadn't heard of a retiree plan as primary to or in place of Medicare B for a large company.

But we aren't quite at that stage yet, but I'm pretty sure that we'll have Medicare A and B, plus the Retiree plan as secondary (sort of supplemental/medigap/etc., coverage).

RM
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tj
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Re: Medicare while still employed

Post by tj »

ResearchMed wrote: Fri Sep 23, 2022 7:37 pm
Duzz78 wrote: Fri Sep 23, 2022 7:27 pm My husband retired from a large corporation. 85k plus employees. He has Traditional Medicare Part A and his supplemental plan through his employer.

His prescription drug plan with his employer is not creditable by Medicare standards. So he is on a Medicare Part D plan as well.

The second sentence in his company retiree Medicare booklet in the drugs section stated that clearly. You can also verify with your retiree Medicare portion of your company.

That's interesting about only having Medicare Part A plus the Employer Plan. That's a "retiree" plan, correct? So no Medicare B?
I hadn't heard of a retiree plan as primary to or in place of Medicare B for a large company.

But we aren't quite at that stage yet, but I'm pretty sure that we'll have Medicare A and B, plus the Retiree plan as secondary (sort of supplemental/medigap/etc., coverage).

RM
The quote clearly says a supplemental plan, which implies yes Medicare part b not no medicare part b
Topic Author
Barkingsparrow
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Re: Medicare while still employed

Post by Barkingsparrow »

RetiredAL wrote: Thu Sep 22, 2022 5:21 pm Before you wife retires, that is a Medicare Form for her employer (HR staff) to fill out stating that you and she had credible insurance from that employer, otherwise there could be a Part B and Part D penalty for not signing up on a timely basis. I think it was form CMS-L564.

I retired at 66. I took Medicare A at 65, as my employer required that. Before I left at 66, I had HR fill out the form. DW turned 65 the month I retired and she signed up for A, B, and D in a single sitting.
I'm not entirely sure what we'll do as yet but I used the information you provided, talked to my HR and they are aware of the form CMS-L564, which is actually called "Request for Employment Information" and they know how to process it. Now we need to do the same with my wife's HR.

I've come up with the following scenarios:

1. Retire end of 2023, keeping my wife and I on my health plan. Then go on hers until about July 2024 at which point both of us go to Medicare.
2. Each of us take our own corporate health insurance as single next year, giving me the flexibility to retire when I want/take Medicare when need be.
3. Work until July 2024, keeping both of us on my health plan, and we both go to Medicare at that point.
Duzz78
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Re: Medicare while still employed

Post by Duzz78 »

ResearchMed wrote: Fri Sep 23, 2022 7:37 pm
Duzz78 wrote: Fri Sep 23, 2022 7:27 pm My husband retired from a large corporation. 85k plus employees. He has Traditional Medicare Part A and his supplemental plan through his employer.

His prescription drug plan with his employer is not creditable by Medicare standards. So he is on a Medicare Part D plan as well.

The second sentence in his company retiree Medicare booklet in the drugs section stated that clearly. You can also verify with your retiree Medicare portion of your company.

That's interesting about only having Medicare Part A plus the Employer Plan. That's a "retiree" plan, correct? So no Medicare B?
I hadn't heard of a retiree plan as primary to or in place of Medicare B for a large company.

But we aren't quite at that stage yet, but I'm pretty sure that we'll have Medicare A and B, plus the Retiree plan as secondary (sort of supplemental/medigap/etc., coverage).

RM
Yes, it is a retiree plan. Yes, it is a medigap plan. He has part A and B. He currently has no premium costs for these. Pays for the Part D premium.
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