The following appeared in "Dear Marci," a free online weekly newsletter from the Medicare Rights Center.
Q: I am turning 65 and have insurance through my job. Do I need to enroll in Medicare if I'm covered by my employer's health plan? If so, will Medicare and my current insurance complement each other?—Michael (Carson City, NV)
A: You must find out whether your employer insurance will be the "primary" payer or the "secondary" payer to determine whether or not to enroll in Medicare. A primary payer pays first, while a secondary payer sometimes pays a portion of the balance after the primary payer. For people 65 and older, your employer coverage is primary if you or your spouse works for an employer with 20 or more employees. If your employer coverage is primary, you can delay enrolling in Medicare without a penalty. You need to speak to your employer's human resources department to find out whether it is worth paying more than $700 in annual Medicare Part B premiums for Medicare to be your secondary payer.
However, if Medicare is primary (because your employer employs fewer than 20 people) you should enroll in Medicare when you first become eligible. If you delay, you will likely have no coverage at all between the time your employer coverage ends and Medicare begins. You will only be able to enroll in Medicare between January and March of each year, and your enrollment will not take effect until July. In addition, you will pay a 10% premium penalty for each year you delay enrollment. For example, if you enroll in Medicare in 2003 after having waited three years, your monthly Part B premium will be 30% higher than the current premium for your lifetime, namely $76.31, rather than $58.70.-Marci
Like to read more? To sign up for Dear Marci's free online newsletter, send an e-mail to mailto:dearmarci@medicarerights.org with the word "subscribe" in the subject line.
The Medicare Rights Center (MRC) is a national, not-for-profit consumer service organization working to ensure that older adults and people with disabilities receive high-quality, affordable health care. For more information about MRC, visit the web site: http://www.medicarerights.org or write to: The Medicare Rights Center, 1460 Broadway, 11th Floor, New York, NY 10036.
April 2003
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