Good Day, Toni:
We saw your answer about Medicare Part B in an article online and our situation is different. My wife and I have recently turned 65, me in Dec. 2013 and Carol this January 8. We have signed up for Medicare Part A only.
I retired 2 years ago with fantastic retiree benefits for both me and my wife. Currently, I am self-employed and paid as a 1099 contract worker, but I do not have health benefits from that company.
We do not see a need to sign up for Medicare Part B because we are covered under an existing employer retiree plan. Are we correct in this assumption of not enrolling in Part B. Neither the HR department nor Medicare can give us a straight answer.
We do not have any health issues and feel we will get Part B when we get older and will need more medical needs.
Will we be eligible for a SEP because of retiree benefits or will there be a penalty when we sign up for Part B at an older age than 65. When do you advise us to sign up for Part B? Thanks, Richard and Carol from Alexander, VA
Hello Richard and Carol:
Great Medicare question… I would advise you to enroll in Part B NOW!! , I did a Medicare consultation for a person that is also self-employed, but was given wrong advice from a well-meaning friend about delaying his Part B. His Medicare nightmare is now starting…
Medicare does not recognize retiree group medical as creditable cover for delaying your Part B. Medicare recognizes true company and union health plans with the Medicare recipient working full time for that company for one to delay Part B for the working and non-working spouse. On page 22 of the 2014 Medicare and You Handbook states “COBRA and retiree health coverage do not count as current employer coverage”. Individual health plans also are not current employer coverage.
The self employed fellow now is 66 and will receive not only a 10% penalty for each year due to not enrolling in Part B at the right time; but a 20% penalty (2 years 65 and 66) each month for as long as he is on Medicare. The 20% penalty never goes up and will increase as the Part B premium increases.
Now is your Medicare “Initial Enrollment Period which is a 7 month period that begins when you turn 65. You and your wife have 3 months before turning 65, the month you turn 65 and 3 months after to enroll in Parts A and B keeping from receiving the Part B 10% penalty for each 12 month period which you could have had Part B, but failed to enroll.
I would advise anyone who contacts me for Medicare consultation to enroll in Medicare Parts A and B when you are “not working fulltime” for a company. Not working full time with true company benefits is what Medicare looks for to keep for giving you the 10% Part B penalty.
Enroll in Medicare the correct way when you are turning 65 because you do not get a second chance. I didn’t know is not a good excuse for Medicare.
Remember to always talk to your HR department or benefits administrator to find out how your company benefits works or coordinates with Medicare.
Confused about Medicare” Workshops for 2014 are starting. Contact Toni if you would like a workshop for your church, organization or a company lunch and learn.
- Friday, January 31 from 1:00 PM -3:00 PM –The Thomas A. Glazier Senior Education Center, 16600 Pine Forest Lane, Houston, TX 77084. RSVP at 713/274-3250.
Toni King, author of the new Medicare Survival Guide®, which is a simple guide that puts Medicare in “people” terms, is on sale at www.tonisays.com Email questions or to schedule a “Confused about Medicare Workshop” to www.tonisays.com/ask-toni or call
832/519-TONI (8664).
