Skip to main content
R
ReallyNotReally
Contributor ⭐
December 12, 2024

Switching from Employer Plan to Medicare

  • December 12, 2024
  • 1 reply
  • 975 views

I'm 65 and still working, with an employer sponsored health plan. It's a high-deductible plan with HSA so I haven't enrolled in Medicare Part A in order to be able to have the HSA. It's a pretty good but not great EPO plan. Thee employer offers a $6K-per-year opt-out incentive payment.

I could get much better insurance if I were enrolled in Original Medicare with Medigap and opted out of the employer insurance, and even though that would cost considerably more than the insurance from my employer plan, the $6K opt-out incentive would cover most of the difference.

Questions:

1. Is this allowed?
2. If it is allowed, do I have to do it during a specific enrollment period or would this considered a special enrollment situation?

    This topic has been closed for replies.

    1 reply

    L
    LG322302
    Contributor ⭐⭐
    December 13, 2024

    If you are asking if the employer is allowed to offer an incentive to encourage (or coerce) Medicare eligible employees to switch from an employer plan to Medicare, the answer is no under the Medicare as secondary payer rules established in the 1980's. Make sure your employer's plan is creditable under these rules ( i.e., for right now that means your employer has 20 or more employees). If the plan was creditable in 2024, it should be fine in 2025.

    Terms & ConditionsAccessibility statement