If you are fortunate enough to have a group health plan (retiree) coverage from a former employer in addition to Medicare, generally Medicare pays first for your health care bills and your group health plan coverage pays second.
How your retiree group health plan coverage works depends on the terms of your specific plan. Your employer or union, or your spouse’s employer or union, might not offer any health coverage after you retire. If you can get group health plan coverage after you retire:
- It might have different rules.
- It might not work the same way with Medicare.
- Find out if you can continue your employer coverage after you retire. Generally, when you have retiree coverage from an employer or union, they control this coverage. Employers aren’t required to provide retiree coverage, and they can change benefits or premiums, or even cancel coverage.
- Find out the price and benefits of the retiree coverage, including whether it includes coverage for your spouse. Your employer or union may offer retiree coverage for you and/or your spouse that limits how much it will pay. It might only provide “stop-loss” coverage, which starts paying your out-of-pocket costs only when they reach a maximum amount.
- Find out what happens to your retiree coverage when you’re eligible for Medicare. For example, retiree coverage might not pay your medical costs during any period in which you were eligible for Medicare but didn’t sign up for it. When you become eligible for Medicare, you will need to enroll in both Medicare Part A and Part B to get full benefits from your retiree coverage.
- Find out what effect your continued coverage as a retiree will have on both your health coverage and your spouse’s health coverage. If you’re not sure how your retiree coverage works with Medicare, get a copy of your plan’s benefit booklet, or look at the summary plan description provided by your employer or union. You can also call your employer’s benefits administrator and ask how the plan pays when you have Medicare. You may want to talk to your State Health Insurance Assistance Program (SHIP) for advice about whether to buy a Medicare Supplement Insurance (Medigap) policy.
- If your former employer goes bankrupt or out of business, Federal COBRA rules may protect you if any other company within the same corporate organization still offers a group health plan to its employees. That plan is required to offer you COBRA continuation coverage. If you can’t get COBRA continuation coverage, you may have the right to buy a Medigap policy even if you’re no longer in your Medigap open enrollment period.
- Find a Medigap policy.
- Call your State Health Insurance Assistance Program (SHIP).
- Call your State Insurance Department.
CMR & Associates provides independent retirement and insurance advice by reviewing your current plans to improve coverage and reduce cost. Through our proprietary database – The CMR Database® (comprised of some 13,000 brokers and specialists globally) – we maximize access to the retirement and insurance industry for greater options that will translate to better coverage and lower cost. Since 1999, we have saved clients over $120 million.
Please email CMR Associates or call 877-447-4301 or 212-447-4300 for more information.