If you will be 65 soon and eligible for Medicare but still plan to work, please read my blog post about your Medicare options and whether you can delay your Medicare without penalty.
However, if you are 65 or older, are currently working but planning to retire soon, then you have to start planning your health coverage early. You may have to enroll in Medicare or your employer may provide retiree health insurance. It’s wise to compare which option is more beneficial for you in terms of coverage and costs.
Everybody’s situation is different so it’s best to consult with a knowledgeable Insurance Broker/Agent. The simple, step-by-step instruction I described below applies specifically to an employee who will lose his/her employer coverage soon and has to enroll in Medicare.
- Decide when you will retire.
- Starting 3 months before the date you lose the coverage, enroll in Medicare Part B (and Part A if you haven’t had it). Call or visit your local Social Security Office to enroll. Ask that your Medicare effective date will be the first day after the date you lose coverage or the first of the month when you lost the coverage. For example, if you lose the coverage on January 31, then you can request the Medicare effective date to be February 1.
- After receiving your Medicare ID card or Medicare Confirmation Letter, you can enroll in a Medicare Supplement with Part D or Medicare Advantage plan to provide additional coverage. The effective date should be the same date of your Medicare effective date or the first of the month following enrollment.
- For Medicare Supplement Insurance, you’ll have the 6-month open enrollment period from the date you have your part B. This is the time when you can enroll with guaranteed issued and without underwriting, means the company can’t reject your enrollment, charge a higher premium or have a preexisting condition exclusion.
Again since this is just a general guideline, it’s not applicable to all situations. Since everybody has a different situation, I highly recommend working with an Insurance Broker to guide you in choosing a Medicare plan that best fits your budget and needs. I provide those services to you at no cost. Please contact me on how to prepare for your future retirement insurance plan.
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