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Part D Enrollment For Employer and Group Retirees
In the recent past, about 10 million Americans received Medicare coverage from their former employers, also known as Group Retiree Coverage. In the last two years, many companies have discontinued Medicare insurance to their retired employees. These employees must now obtain Medicare insurance as an individual.
What happens if my employer dropped/cancelled my Medicare coverage?
Many people that had Medicare health insurance from their former employers are finding that they now need to choose prescription drug coverage for themselves. Although this transition may be challenging, many insurance companies that offer Medicare Part D Plans do so at a lower overall cost than some plans provided by employers.
Our easy to use Part D Comparison Tool can help you choose a plan and enroll.
- You need to enroll in Medicare Part D when you reach eligibility during the Medicare Open Enrollment Period or during special enrollment periods. If your employer no longer provides you with Medicare insurance, then you must enroll in a new Medicare plan between November 15 and December 31, 2010. If your employer or union stops offering coverage, you must join a plan within 63 days. If you wait longer than 63 days, then you will have to pay a penalty.
- Our Medicare Part D Comparison Tool will help you find a Part D plan based on your zip code and your prescriptions. It will provide you with an estimated annual cost of your expenses, including premiums, deductible, and copays.
Can I get the same Medicare coverage that I previously had with my employer?
It may be possible to sign up for the same plan that provided health insurance to your employer. However, when you enroll as an individual, the costs may vary. It is possible that you will find a plan with a lower premium and a lower annual cost. You should contact your benefits administrator before making changes to verify you can get coverage back once you disenroll. It might not be possible to drop your employer or union drug coverage without also dropping your employer or union health coverage as well.
Can I buy Medicare Part D coverage, if I still have insurance from my employer?
You will NOT be able to buy an additional Medicare Part D plan, if you have “creditable coverage” from your employer. “Creditable Coverage” is Medicare coverage that is at least as good as the minimum coverage from Medicare. If the Medicare coverage from your employer does not meet the minimum Medicare standards, then you may buy additional coverage. Your employer will send you a notification letter letting you know what type of coverage they provide.
Important Note: If you have creditable prescription drug coverage, call your employer or union’s benefits administrator before you make any changes to your coverage. If you drop your employer or union coverage, you may not be able to get it back. You also may not be able to drop your employer or union drug coverage without also dropping your employer or union health (doctor and hospital) coverage. If you drop coverage for yourself, you may also have to drop coverage for your spouse and dependents.
What would you like to do now?
