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Gold Conversationalist
Posts: 54
Registered: ‎05-30-2012

Re: Taking the voluntary retirement offer

Message 11 of 14 (1,755 Views)

Thanks Gail, very informative.   It does seem odd to have a few hoops to jump through when you work beyond 65.  Everyone is encouraging that for a host of reasons.  Regarding Plan F -- not sure what to make of that.  Are you suggesting that one might want to choose a different plan now because having to change to a different one in 2020 could be more expensive due to health changes?

Randy
Valued Social Butterfly
Posts: 8,621
Registered: ‎08-18-2008

Re: Taking the voluntary retirement offer

[ Edited ]
Message 12 of 14 (459 Views)

Indianrock

It sounds like you have researched the correct method in picking your Part B Medicare - also know as SMI (Supplemental Medical Insurance).  The document which you have to submit actually tells CMS that you have had other coverage for these types of benefits during the interim period - since you have turned 65.

Providing this documentation will assure you that a premium penalty will not be added for not having this coverage, having some other comparable coverage during this period instead.

 

The current Part B premium of $ 134.00 is the base premium for Part B for new enrollees for 2017.  The amount may change for new enrollees in 2018 - this information for 2018 will be available in about October 2017 once the computations are done.  If you are one who will have a higher income, i.e, over $85,000 for a single person or $ 170,000 for a couple, there is also a premium surge charge for higher income folks 

 

In the last quarter of the year, when COLA are determined, CMS calculates the Part B premiums for everybody.  Part B (SMI) is paid 25% by premiums and 75% from the General Fund.  

 

Also don't forget about your choice of Medicare Part D plans - prescription drug coverage.  There is also a premium penalty for this coverage if you don't sign up for one when 1st required.  I do not remember if there is also form documentation for this coverage from your employer too.

 

Do remember that Medigap Plan F is being discontinued in 2020 and will no longer be sold.  Just be aware that the longer that folks continue to stay in this plan, because it will keep going, the older they will get, perhaps sicker too - so that could have an affect on the premiums down the road - depending upon your states rules governing how they determine premium for Medigap plans.

 

Happy Retirement - Hope you have your list made as to how you will spend your days.  I seem to have so much to do, I now wonder how I ever had time to actually have an official job !

Regular Social Butterfly
Posts: 388
Registered: ‎05-25-2009

Re: Taking the voluntary retirement offer

Message 13 of 14 (458 Views)

First, congrats on finally (almost) being "retired" (which I consider time to volunteer, relax and travel).

 

Your situation is similar to something I went through (in the gaming industry) but I would suggest you wait to see what this administration does with health care and coverage requirements. I'm not an expert, but I think searching CNN would provide more accurate info than paying an "expert" at this point.

 

Perhaps, set aside some dollars just in case, but the information you provided, my personal experience leads me to believe you're okay until the politics are done.

 

Congrats, again, Randy.

Phil Harris, actor and showman, to John Fogerty of CCR: “If I’d known I’d live this long, I’d have taken better care of myself.”
Gold Conversationalist
Posts: 54
Registered: ‎05-30-2012

Taking the voluntary retirement offer

Message 14 of 14 (448 Views)

I just opted to take my company's voluntary retirement offer with 9.5 months severance.  Question is on Medicare Part B:

 

I turned 69 in May and have been working full time all along.  Started collecting Social Security at 66.  Now that I'm retiring August 31st, I've found that I'll have 8 months to sign up for Medicare Part B ( started part A at 65).  But, I will need a form filled out by my employer verifying health insurance since May of 2013.   Sound about right?

Due to corporate buyouts, my HR team has to dig back a bit since the current corporate owner bought the company last year.
The form:
https://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/Downloads/CMS-L564E.pdf
More info:  I'll actually be on full pay and health benefits through May 2018 due to a severance package but still need to start Part B ( and it's costs ) by April to avoid life-long penalties and gaps in coverage.  I'm considering starting Part B this September ( $134 / month ) just to avoid the possibility of problems later on.  I'll probably get a United Health Care AARP Medigap Plan F next April also.

Randy