Individuals over 65 and currently receive healthcare benefits from their employer insurance are eligible to enroll for Medicare. In such conditions, the person may be eligible for a Special Enrollment Period, which grants them the opportunity to delay enrollment in Medicare until a later date without facing late enrollment penalties. However, it is possible to be enrolled in both employer insurance and Medicare.
Employer Insurance and Medicare Together
To cover the cost of necessary healthcare services, you can use Medicare alongside a group health plan. Since some people continue to work after age 65 and may receive health plan benefits, it is possible to have Medicare and employer insurance at the same time. Companies, unions, or organizations offer employee health coverage to active employees. These plans cover various healthcare services for active employees and their dependents in some cases.
However, keep in mind Medicare has no impact on your spouse or dependents, as it is an individual health plan. However, some group health plans cover the employee and their dependents and spouses.
Primary and Secondary Payers
In cases where you have Medicare and employer insurance at the same time, both plans will work together, but one will be the primary payer, while the other will be the secondary payer. When you have multiple health insurance plans, the insurance that pays out first is known as the primary payer. Then the secondary insurance steps in to cover some or all of the remaining costs not covered by the primary payer.
If you are part of a group health plan in a company with more than 20 employees, Medicare will serve as the secondary insurance. In this case, Medicare will cover the remaining costs after the employer has paid their share.
If you want further information about how Medicare can work with your group health plan, contact a licensed agent at Meservey & Associates to learn more.
