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Can Returning To Work Impact Your Medicare Coverage?

In the world we live in today it's not uncommon for people to return back to work after retirement. Research shows that almost 30% of the people age 65 to 75 and almost 11% of the people above age 75 will be employed by the year 2026.

Whether you are employed at an organization, working on a side-gig, or have a part-time job after the age of 65 there are some things that you need to understand about Medicare coverage.

Returning To Work, Medicare, and Employer Coverage.

If you’re returning to work after the age of 65 and are already enrolled in Medicare you are allowed to work for an employer who offers health insurance. You are allowed to use both Medicare and your employer health insurance plan together. However, one of the plans will act as primary and the other will act as secondary.

It’s important to keep in mind that when you are using Medicare and a health insurance plan provided to you by the employer, you are not allowed to contribute to a health savings account if it’s offered.

Do You Need To Keep Medicare.

If you are returning to work for an employer that offers health insurance which can be accepted as primary coverage, then you don't need to keep Medicare. You’re also allowed to re-enroll in Medicare without any penalties after the employment ends. However, if you drop Medicare and do not have employer health insurance coverage you will have to face penalties.

Prior to dropping Medicare, there are some things that you need to consider because some of the choices can prove to be costly.

  • Pre-Existing Condition – If you decide to drop Medicare Part B, then you are also required to drop a Medigap Plan if you have one. Doing so will make it difficult for you to enroll in another one later on, as your pre-existing health condition will be considered when you apply.

  • Health Savings Account – If you decided to drop Medicare Part A to contribute to an HSA offered by your employer, you could end up making payment for medical services that were covered by Medicare as well as repaying the Social Security benefit money you were getting.

  • Premium Payments – If you currently pay premiums for Part A you cannot drop Part B without dropping out from Part A.

Rules For Re-Enrollment In Medicare.

When looking to re-enroll in Medicare when working after the age of 65 you will have to follow the rules mentioned below:-

  • You will have an 8 month Special Enrollment Period in which to re-enroll in Medicare Part A and Part B.

  • If you fail to meet the time period for the Special Enrollment Period, you will have to wait for the Medicare General Enrollment Period. It’s possible for you to be penalized for late enrollment if you spend an extended duration of time without creditable coverage.

  • Although a duration of 8 months is provided for re-enrolling in Medicare Part A and Part B, you are only provided with a 2 month time frame to re-enroll in the Medicare Part D Prescription Drug Plan or a Medicare Advantage Plan (Part C). You can be penalized for late enrollment in Medicare Part D as well.

  • You are allowed to re-enroll in a Medigap plan after you’ve re-enrolled in the Medicare Parts A and B.

Confused About Medicare?

As you can see, these situations can get rather complicated. We work as Independent Insurance Brokers, and have been appointed by many 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 details, please feel welcomed to contact us today at (540) 662-4432, and talk to one of our Insurance agents or simply visit our website to obtain more information.

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