Easing Your Employees' Transition to Medicare.
Many employers today have employees who are age 65 or older and eligible for Medicare. For these employees who continue to work, there are important considerations, ranging from costs and benefits coordination to compliance requirements, that can vary based on the size of your organization.
medicare and your workforce
Our Medicare and benefits teams help employers evert dat navigate these rules and educate employees (and their spouses) as they approach Medicare age. When employees retire, our Medicare team will provide hands-on guidance through the transition to full Medicare coverage, including enrolling in important Supplemental insurance.
what employers need to consider
Costs
When employees choose Medicare instead of the employer’s health plan, it can sometimes save money for both the individual and the organization. But the impact depends on factors like employer premium contributions, company size, and the strength of the group plan.
Delaying Medicare Enrollment
Employees can delay signing up for Medicare without penalties if they keep their employer coverage (or a spouse’s employer plan) while still working.
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Once they retire, they typically have 8 months to enrol in Medicare Parts A & B to avoid penalties.
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Delaying can help employees save on premiums, keep HSA contributions, and retain stronger employer plan benefits.
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Delaying Medicare while on COBRA or retiree benefits does not qualify for a Special Enrollment Period and may trigger penalties.
Coordination of Benefits
How Medicare and your group plan work together depends on employer size:
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Under 20 employees: Medicare pays first, the group plan pays second. In most cases, employees should not delay enrolling in Parts A & B.
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20 or more employees: The group plan pays first, Medicare pays second, making coordination simpler.
Health Savings Accounts (HSAs)
Enrolling in any part of Medicare means an employee must stop contributions to an HSA
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To keep contributing, employees should delay enrolling in Parts A & B and stop contributions at least 6 months before applying for Medicare or Social Security.
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For small employers, Medicare’s primary payer status can make enrolling necessary for full coverage—even if it ends HSA contributions.
Creditable Drug Coverage
Employers must give Medicare-eligible employees an annual notice confirming that their prescription coverage meets Medicare’s minimum standards. This protects employees from late-enrollment penalties for Medicare Part D. We provide this notice in our employee materials.
let's make medicare simple
If you're an employer trying to understand and navigate the rules, our team is here to guide you every step of the way. to help you and your Medicare-eligible employees avoid costly mistakes and feel confident in your coverage.
Contact us today to get started.