On Sept. 18, Wellness Works partnered with Blue Cross Blue Shield of Michigan (BCBSM) in hosting a Medicare 101 webinar informing employees on how to best transition from their group health plans to Medicare in retirement. Terry Rush, BCBSM’s Director of Senior Health Services, Sales and Retention, discussed key information and answered frequently asked questions regarding Medicare and changes in health care plans.
Key Information About the Aging Population
The American population is aging at a fast rate. About 4.1 million Americans are on track to turn 65 this year – about 11,200 people per day versus the 10,000 average per day over the previous decade. By 2030, the 65 and over population is projected to be over 71 million—about 20% of the U.S. population.
Since the population is aging quickly, staying informed on how to remain healthy and covered is essential. As an employer, one of the most important things you can do for your employees is to educate and inform them.
How Does Medicare Work and When Can Employees Enroll?
Original Medicare is the federal health insurance program administered by the Centers for Medicare and Medicaid Services for:
- People 65 years or older.
- People younger than 65 years old with certain disabilities.
- People with end-stage renal disease or kidney failure.
When Can Employees Enroll?
If you’re eligible for Original Medicare when you turn 65, you can sign up during the seven-month period that:
- Begins three months before the month you turn 65.
- Includes the month you turn 65.
- Ends three months after the month you turn 65.
- There is also an option to enroll online at www.ssa.gov/benefits/medicare or by calling 1-800-722-1213.
How to Prepare Employees
Employees should check when their current coverage ends and sign up for Original Medicare at least a month prior to avoid any disruption or gaps in coverage.
Have employees fill out the Request for Employment Information Form (Form# CMS L564) if they are retiring over four months after they turn 65. If they do not enroll during your Initial Enrollment Period, they could face tax penalties.
To avoid a tax penalty, employees should stop contributions to any Health Savings Account six months before they retire or apply for Original Medicare benefits from the Social Security Administration.
Resources from Blue Cross
Encourage employees to think about their health needs and finances to determine if Original Medicare Part A and Part B will be enough coverage to protect their health and retirement budget. If not, encourage them to find additional coverage, such as a Medicare Advantage plan.
If you have additional questions, you can contact your preferred BCBSM independent agent or email BCBSM’s Medicare team at G21sales@bcbsm.com.
- Blue Cross Insurance Folio
- Includes FAQ, call center directions, enrollment milestones, quiz for plan recommendations, and more.
- Employer Toolkit
- Introduce your employees to their options and next steps for coverage. This toolkit includes an overview of plans, guides, and more.
- Medicare 101 Basics
- Explore eligibility, FAQ, and aid your employees in choosing plans