October 11, 2018


Medicare can be confusing. The Fedeli Group is beginning an educational series to update plan sponsors and employees on this overwhelming, yet important, benefit. This article is the first in the series, answering several questions you may hear from your employees. Look for more information in future articles.

Turning 65 and looking at Medicare can bring about many questions, especially if you are still working, and/or not ready to collect social security.

Do I need to sign up for Part A and B? Do I have to collect social security? I am not ready to retire, will I pay a penalty if I don’t sign up? WHAT AM I REQUIRED TO DO?

If you are still working and have insurance through your employer or your spouse’s employer, you do not have to sign up if the insurance coverage meets what is called “Credible Coverage”. The benefits coordinator should be able to tell you whether or not your insurance is credible coverage. If it is credible, you will not have to pay a penalty by delaying part B. When you are ready to come off of the company plan, you will then need to sign up for Part B. This does need to be done in a specific time frame.

If you are 65 and do not have insurance that is credible coverage, then “yes” you do need to sign up for Medicare A and B to avoid any penalties. This needs to be done within a 7 month window (3 months before the month of your birthday, the month of your birthday, or 3 months after your birthday).

Medicare A and B provides coverage for hospitals and medical. The coverage is 80%. You then need to decide if you want a Medicare supplement insurance plan or a Medicare advantage plan to cover the 20% that is not covered by Medicare. There are many options available for each of these. In addition, when you do go on Medicare, it is required that you get a Part D prescription plan, even if you are not taking any medications. If you do not get the Part D plan, you will pay a penalty.

More Medicare questions? Talk to our Medicare specialist today.

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