Over 65 and Leaving Employer Coverage

This section applies if you are not on Medicare or just Medicare part A and you are working with employer coverage. Some reasons why you would leave your employer health plan are:

1. You have decided to stop working and the employer does not offer any retirement insurance, or if they do, Medicare is more cost effective.
2. You continue to work but Medicare is better or more cost effective coverage.
3. You are on your spouse's plan and your spouse retires or the premium becomes to high.

You would call Social Security or apply online for Madicare A and B or just B. You need your benefit administrator to fill out a form showing you had health coverage and submit it with your application. This will let Medicare know not to charge you any late enrollment penalties.

Your coverage would start the month after you apply unless you request a different start date. You want to cordinate your employer plan ending and Medicare starting to avoid extra premiums.

Your employer should send you a letter stating that you had creditable coverage. You should keep this letter and you may have to send it to Medicare to avoid a part D late enrollment penalty.

If you currently have an HSA, you would want to discontinue contributing 6 months before your part A start date.

This can be complex and it is best to consult with an agent who can guide you how to complete this process.