I received a letter from Social Security because I will be turning 65 soon. How does this affect my insurance coverage?
If an employee is working in a position providing insurance eligibility, the employee should notify the Social Security office that they are still working in a position providing insurance coverage. Our recommendation is the employee should enroll in Medicare Part A, which is provided at no cost, and defer enrollment in Medicare Part B, which carries a monthly premium, until the employee either retires or terminates from the position providing insurance coverage. Insurance coverage provided as an employee will remain primary and Medicare will be secondary. When the employee retires or terminates, they will need to notify Social Security of the change in their employment status resulting in the loss of insurance coverage as an active employee. It is our understanding Social Security will then allow the individual to enroll in Medicare Part B. Once the employee retires or terminates, Medicare will become the primary insurance. If the employee retires and is eligible for enrollment in the State’s retiree insurance coverage, it will serve as a secondary insurance to Medicare.
If an employee’s spouse is turning 65 and the spouse is covered as a dependent on the employee’s health insurance coverage, the same rules apply. Insurance coverage provided as a dependent through our employee will remain primary until the employee retires or terminates.