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Roadmap to Medicare Under 20 Employees HSA

HSA Considerations

You can no longer contribute to a Health Savings Account (HSA) once you enroll in Medicare Part A.  Click on the link above for more details on HSAs and Medicare.

Customized Roadmap Report

Click on the image to download your 1 page Roadmap

Enrolling in Medicare

After reviewing ALL of the information on this webpage, click on Enroll Now or Enroll Later for detailed enrollment/deferral instructions based on your situation.

Since Medicare is most likely your PRIMARY Insurance, you may want to…
If your Group Health Plan is cost effective AND will REMAIN PRIMARY to Medicare, you may want to…

Your Roadmap is based on…

  • Your Primary Insured intends to remain ACTIVELY WORKING (at the employer providing your benefits)
  • You ARE covered under the group health insurance plan
  • The employer providing health insurance has LESS THAN 20 employees
  • You ARE contributing to a Health Savings Account (HSA)

Do I need Medicare to have full coverage?

Yes/Likely.  Once you turn 65, it is likely that your group coverage will become secondary coverage and Medicare will become the primary insurance.  If you do not enroll in Medicare, you may not have full coverage.

Will I receive a penalty if I don’t enroll now?

No. You will not receive a late enrollment penalty provided you remain covered under the group creditable coverage and your primary insured remains actively at work at the employer that provides your benefits.  Although you will not receive a penalty with creditable coverage, you may still need medicare for full coverage (see section above).

What is my deadline to enroll?

Your Initial Enrollment Period (Turning 65) is 7 months surrounding your 65th birthday to enroll online.  If you do not enroll during that time, you can enroll anytime up to 8 months after your group coverage or the employment that it is based on ends (Over Age 65).  Although you are not under an immediate deadline to enroll at this time, you may still need medicare for full coverage (see section above).

Secondary Insurance Options

Since your group health benefits are likely considered secondary insurance to Medicare, you MUST be enrolled in Medicare A and B to have full coverage.  You will have the option to keep your Group Health Plan as secondary or elect a Medicare Supplement and Medicare Prescription Drug Plan as secondary.

Underwriting Considerations

Medicare Supplement Insurance has an Open Enrollment Period for the first 6 months that you are enrolled in Medicare Part B.  During this time, you will be able to purchase ANY medicare supplement plan with no medical underwriting.

If you stay with your group health plan and decide to elect a Medicare Supplement later (when group health ends, but you have already been on Medicare for more than 6 months) you will have SOME plans available on a Guaranteed Issue basis.  There will be less options available that do not require you to answer medical questions to qualify.

Medicare Advantage Plans and Medicare Prescription Drug Plans provide an Initial Election Period when you enroll in Medicare, a Special Election Period when you come off your group plan, and also allow you to change plans once a year during the Annual Election Period (October 15th through December 7th) without medical underwriting.

Additional Considerations

Spouse Under Age 65-  If your spouse relies on your group health plan for benefits, please be mindful that if you come off your group plan, your spouse will have to go on COBRA, seek benefits through their respective employer, or purchase individual health insurance until they become Medicare eligible.

Effective Date Considerations- Reminder, when you apply for Medicare at age 65, you cannot choose a specific effective date for the benefits (and premiums) to start.  The only way to influence the effective date is by which month you enroll online.  Please contact us ASAP if you are trying to achieve a specific start date that is something other than the first of the month of your 65th birthday (possibly to coordinate with your group plan ending).

Important HSA Considerations– You cannot continue to contribute to your Health Savings Account (HSA) once you enroll in Medicare Part A.  If you are enrolling in Medicare after age 65, your Part A effective date may be back dated up to 6 months.  Please contact us to discuss the HSA maximum contribution rate for you circumstances.  Click Here for Details and Rules.

  • This does not apply to Flexible Spending Accounts (FSA) or Health Reimbursement Accounts (HRA).  Medicare does not have any restrictions on these types of accounts.

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