Health Care Buzz: What if I am still working when I turn 65? – Twin Falls Times-News

The baby boomers have been turning 65 with an average of 10,000 new Medicare beneficiaries daily starting in 2018. Additionally, we have more working adults past 65 than we have ever had since Medicare was created in 1965. (*See final note with the Great Retirement) This means that 65+ year old’s have options with their insurance. Let’s walk through some choices as when turning 65, Medicare is now an option.

Additionally, it is recommended to create a spreadsheet to help outline the below comparisons when assessing choices.

1) Continue with your employer-sponsored insurance plan. What is your monthly premium? What is your deductible and copayment for services? What do you pay for a drug benefit? What is your cap with out-of-pocket costs?

2) Discontinue your employer-sponsored plan and move to Medicare. Once you have No. 1 completed, compare against a traditional Medicare benefit. (You can learn more about traditional Medicare from multiple historical articles are on PFNFinc.com. Great reference material to better understand the Medicare benefit package.) What would traditional Medicare’s monthly premiums be? Part B/outpatient, Part D/drugs and optional, supplemental insurance to cover deductibles and copayment when services are used. What is the out-of-pocket without a supplemental for Part A/inpatient hospital and all outpatient services/Part B when used? Your own historical health information will be necessary to develop an estimate. A key area to assess: how much would you pay for your prescription drugs — as this may be a significant difference depending on the medication.

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3) Discontinue your employer-sponsored plan and move to Medicare Advantage/Part C. The costs will be different than traditional Medicare but Part B monthly premiums and Part D monthly premiums are still required. Understanding Medicare Advantage is important so utilizing MyMedicare.gov along with PFNFinc.com reference material is recommended.

4) Add Medicare Part A at no cost to your employer sponsored plan. Medicare will become the secondary payer as since you are still working and have an employer sponsored plan, the employer insurance plan will be primary. Once you retire, No. 2 and No. 3 will become primary options. Choices, choices, choices.

Depending on your current employer-sponsored insurance plan’s monthly premiums, deductibles and co-payments — and your current health status — complete a review of the Medicare options. There is also a yearly enrollment period after your initial/turning 65 period so you can re-assess what is best for you each year. Creating an individual MyMedicare.gov account will allow for ongoing information, especially during yearly open enrollment.

*Final note: With the Great Retirement of 2021, many more people began retiring — some taking early Social Security/62 years of age with penalties, others were working past “normal” retirement of age 65 and decided to retire, others had worked enough years to have retirement benefits — all are now no longer usually covered by their commercial plans. Time to move to health care exchange/marketplace for under 65 health insurance options or No. 2 or No. 3 if over 65. (Again, use the PFNFinc.com webpage for educational information to help with informed decisions.)

Day Egusquiza is the president and founder of the Patient Financial Navigator Foundation Inc. — an Idaho-based family foundation. For more information, call 208-423-9036 or go to pfnfinc.com. Do you have a topic for Health Care Buzz? Please share at daylee1@mindspring.com.

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