Hi Toni:
I have a few questions about Medicare and our employee benefits. I am the benefits administrator for a company and I need to provide information to our employees since, we have 2 health plans, a PPO and a high deductible HSA. Most of the employees have chosen the HSA because our company generously contributes half of the annual deductible to the employees HSA.
My question is: Those employees who are turning 65 want to participate in the HSA, but cannot once they are enrolled in Medicare Parts A and/or Part B. Are Medicare eligible people automatically enrolled in Part A or do employees have to notify Social Security that they do not want it?
I look forward to your response…Carmen, a Memorial Examiner reader
Carmen:
Great Question!! Here is what Social Security explained to me….Medicare Part A begins when Social Security not Medicare is informed that you want to enroll in Medicare. Medicare Part A begins when you start receiving your Social Security check after turning 65, whether working full time with true company benefits or retired.
I would advise you or anyone who wants to delay their Medicare that they must be working full time as an employee not self-employed or a contracted employee and have true company benefits such as the HSA or a true group health plan not an individual health plan.
Three ways that Social Security is aware of the Medicare beneficiary turning 65 are:
1) When you are already receiving your Social Security check prior to turning 65. You will receive your “Welcome to Medicare” kit with your Medicare card in it.
2) You are retiring at 65 and you notify Social Security that you need to begin your Social Security check/or you may delay your Social Security check to when you will receive 100% at 67 or later. You want to begin both Medicare Parts A and B at 65 because you are no longer working with true company benefits
3) You are still working and have true company benefits NOT a high deductible HSA and 90 days prior to turning 65 enroll in Part A, but delay Part B for a later day when you retire and no longer have true employer coverage and need to enroll in Part B.
For those who need to delay Medicare Part A because you or your company are making contributions to a HSA can do so by simply not informing Social Security that you have turned 65.
For your employees, Carmen when they do contact Social Security to begin receiving their Social Security check or to enroll in Medicare Part A and/or Part B, it is then that they or any of my readers or HR managers, who have the same problem as you are having, they cannot make any more contributions to the HSA because you will be in Medicare. When you begin your Social Security check, then your Part A and/or Part B dates will be later than when you turned 65.
*Always talk with HR and Social Security before delaying your Part A for a later date past 65 or contact me and we can discuss your options. It is so hard to correct a mistake with your Medicare. I do not hear of very many people delaying Part A…but healthcare reform is causing companies to make changes to their group health plans due to rate increases that is making company health plans unaffordable. HSAs are becoming a more common practice. **Always get copies of what Social Security has advised or changes they have made.**
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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).
