If you are employed when you turn 65 and you have group health insurance through your employer, it’s very important to know whether or not you need to enroll in Medicare. Let’s look at some of the factors involved in that decision.
The Mathematics Involved in Making Your Decision about Medicare
At 65, you become eligible for Medicare. If you are still employed, you will need to decide whether to enroll in Medicare and leave your group health coverage, or retain your employer coverage. In general, making the decision involves a simple mathematical comparison.
There is a basic premium for Medicare Part B. This amount changes every year with the amount being determined by the U.S. Government. Right now, it’s about $175 a month. Let’s suppose that I’m a high income person, my income is above $200,000 if I’m married, or it’s around $90,000 if I’m single. In this case, the U.S. Government will increase that $175 premium. So when you are making this decision, you need to take your income level into consideration.
Know the Right Questions to Ask as You Make Your Choice
While making your decision starts with simple mathematics, there are several other questions you need to know the answers to. Such as these:
- What are the costs for any Medicare supplemental plans, Medicare Part D or a Medicare Advantage plan?
- How do they compare to my group health insurance plan?
- What does it take to stay on my group health insurance plan?
- What is my employer charging me?
- What is my employer charging my spouse?
- What if I’m 65 but my spouse (my dependent) is not 65?
- What if I’m on my employer’s plan and I’m not 65, but my spouse is 65?
This sounds like a lot of complexity. Basically, it still comes down to a mathematical comparison between the two kinds of coverage. You’ll need to know the deductibles and premiums and other costs. Once you know all those facts, it becomes pretty simple to make that decision.
Cutting Through the Complexity of Making Your Decision on Medicare
Making the decision on whether or not to switch to Medicare when you become eligible, thereby leaving your employer coverage, is an important topic. My staff and I deal with all these questions every day. We will be happy to talk you through the data collection and mathematics of your decision. Give us a call at MBhealth at (314) 544-5400. We’re ready to help.
