Should I Buy a Medicare Supplement if I Have Existing Group Coverage?



Medicare supplement plans provide a selection of coverage pertaining for Medicare participants with a variety of benefits and costs depending on current health conditions. As Medicare participants prepare to move from existing group coverage, there are procedures that allow the participant to transition from the group plan to Medigap Medicare supplement plans. Medicare plans allows individuals reaching the age of 65 and covered under an employer‘s group plan to delay enrollment until the group plan terminates without penalty. Normally Medigap Medicare supplement plans begin the day the group policy coverage ends.

Grouping

Medicare supplement plans have annual open enrollment periods where plans may be changed as health requirements change. To take advantage of the Medigap Medicare supplement plans, individuals must be within 6 months of reaching the age of 65 and eligibility for Medicare. Medicare supplement plans work together with Medicare Parts A and B. Medicare supplement plans do not cover Part D prescription drug costs and is not accepted as a supplement plan for Medicare participant receiving Medicare Advantage.

Purpose

Individuals, who have reached the age of 65 and have continued health coverage through an employer’s group plan, have the ability to postpone Medicare enrollment. At some point enrolling in Medicare’s Part B may be necessary and depending on circumstances, penalties for late enrollment may be imposed. If the Individual chooses to delay enrollment until the employer’s group plan terminates the individual may be eligibility to participant in the Medicare supplement plans without penalties. Other situations with group coverage, Medicare supplement premiums can be stopped during the group coverage period for individuals who are covered under a spouse’s group insurance. Restoration of the Medigap supplement plans for returning participants can be done when needed.



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