In today’s world a ton of people are looking to start their own business or have already made the big move. Most of the people, whether as a freelance worker or on contract, are not aware about enrolling in Medicare and how self-employment may impact their Medicare choices.
When you’re self-employed you can either choose to have your own health care coverage or be covered under an employed spouse. However, you will have some choices to make once the time to enroll in Medicare arrives. Provided below are some of the crucial details that will come in handy.
Self-Employed With Marketplace Coverage.
In a scenario where you’re responsible for your own health insurance through a Marketplace plan, you may choose to keep it until your Medicare coverage starts. After your Medicare coverage has started you may decide to cancel your health insurance through the Marketplace or decide to continue it. However, if you choose to keep the Marketplace plan, it will become secondary once your Medicare coverage has started. Once you are enrolled in Medicare Part A you will lose any tax credits or lower out of pocket cost savings that were offered by the marketplace plan.
Be aware that enrollment in a Marketplace plan does NOT qualify you to delay Medicare enrollment without paying a late enrollment penalty. You are still required to enroll in Medicare at the age of 65. You’ll be provided with a total of 7 months to enroll in Medicare Part A and B, as well as Part C or Part D (the initial enrollment period lasts for 7 months: it begins 3 months before you turn 65, the month you turn 65, and 3 months after the month you turn 65).
Self-Employed With Employer Coverage From a Spouse.
If you are covered under a plan covered by your spouse’s employer, you may be able to delay enrolling. However, the employer will be required to have 20 or more employees and creditable drug coverage as well. You will also be required to find out if the company requires Medicare-eligible dependents to enroll in Medicare at the age of 65 so that you may remain on the employer’s health coverage plan.
It’s possible for you to keep both the employer plan and Medicare, but it’s important to know that once Medicare coverage starts, the employer plan will become secondary.
Self-Employed With Retiree Coverage.
If you are self-employed and have retiree coverage you can check with your benefits administrator to understand their retiree coverage plan requirements when considering Medicare. The retiree plan can still continue as a main insurance for a younger spouse and dependents, but will become secondary for you once Medicare coverage starts.
Still Need More Information?
Getting a complete understanding about how self-employment may affect your Medicare can be difficult and the lack of a proper understanding can lead to poor Medicare choices. If you are self-employed and need any additional information or have questions about how self-employment will impact your Medicare choices, then please contact us for a free consultation.
We are Independent Insurance Brokers appointed by most of the major insurance carriers. We can help you find the best policy for your individual situation. We work with clients in Winchester, VA, Martinsburg, WV, and Charles Town, WV.
For more information, call (540) 662-4432 to schedule an appointment. Visit our website at medicaretrustedagents.com and follow us on Facebook at IKnowMedicare.