You may be in a situation where you are wondering if you can drop your employer’s health insurance plan for Medicare or possibly keep both. We’ll explain when it is possible to do so and when it is advisable to drop an employer health plan in favor of Medicare.

Before making the ultimate decision, there are some factors you need to consider. 

Eligibility

The first is your eligibility and the size of the company. Before you can enroll for Medicare, it is important to check if you are eligible for the plan. Most become eligible for Medicare three months before turning 65 and will have an Initial Enrollment Period that will last up to three months after turning 65. During this period, Medicare-eligible individuals can enroll in Original Medicare. 

If you are younger than 65 with a disability or have End-Stage Renal Disease, you may also be eligible for Medicare.

Company Size

The next thing to consider is the size of the company. Legally, your employer is expected to provide some health insurance plans for as long as you work for the company. This means you are not mandated to enroll for Medicare if your employer has more than 20 employees and you are covered by a health plan. You can still choose to enroll in Medicare, but your employer health plan will serve as the primary insurance.

However, if your company has fewer than 20 employees, then you will need to enroll in Medicare. Medicare will serve as the primary insurance in this case, while the employer health plan will become the secondary insurance. You can also choose to drop your employer’s health plan in favor of Medicare if your company has fewer than 20 employees. 

Why Enrolling Is Important

It is advisable to enroll for Part A when you become eligible for Medicare, even if you still have an employer health plan. Part A is premium-free for most people and covers hospital costs, skilled nursing care, home health care, and other services, so it will do more good to enroll. For those who have health insurance that would not be considered creditable coverage, then delaying Medicare enrollment could cause gaps in coverage and cause late enrollment penalties to incur, which are typically permanent.

For support in comparing Medicare coverage with your employer health plan, our team is here to help. We will help you select the right coverage to provide you with peace of mind as you move towards retirement. Give us a call today at 972-331-1060.