Reaching the age of 65 does not have to always mean you’ll be ready to retire. The truth is, an increasing number of seniors and baby boomers in the U.S are continuing with their daily work routine past the age of 65. As per the recent U.S. Jobs report, 32 percent of seniors above the age of 65 were employed during the last quarter. Additionally, there has been a steady increase in the number of seniors above 70 who’re either unable to retire or declining their retirement. As the number continues to rise each year, it seems like a continuous trend.
What happens when a senior who’s enrolled in an Employee Sponsored coverage decides to continue working after the age of 65? Should he/she drop the employer’s coverage to purchase Medicare? Or stay with their Employee coverage and delay their enrollment in Medicare? Will, your company pays for the Medicare premium?
A company can pay your Medicare premium if you are an active employee and the group’s health coverage is integrated with the company’s payment policy.
Another means through which an employer could pay is via IRC also known as the Internal-Revenue-Code. The reimbursement guidelines under section 105 of this plan let employers provide an allowance to their Medicare-insured senior members for various medical premiums which also includes Part B and Part D Medicare, Medigap & Medicare Advantage.
Should You Purchase Medicare or Depend on Your Employee Plan?
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Everyone who is above 65 requires health coverage irrespective of whether you receive it via your company, Medicare or your partner’s employer plan.
Now, when it comes to picking the right option, you’ll need to consider key features of the plan, deductibles & maximum out-of-pocket expenses prior to making any decision.
Also, you want to make sure that your current doctors accept monthly premiums. In case you’re satisfied with your employee plan, it is wise to continue with it as your main source of coverage.
By sticking with your company’s group health policy, you will be able to check with Medicare for determining whether you can postpone your enrollment in Part B. At times, your employer might need you to purchase Medicare.
If you wish to drop the group health coverage and if you are married and your partner is enrolled under your company’s plan, it might be worth to review the plan options to know when they lose the coverage from your company’s plan.