Enrolling in Medicare Part A & B

[steveadlman]

I have a prospect who just got laid off from her job. She turned 65 back in October. Under her severance package she will get full pay for six months and they will pay for her Cobra coverage for her and her husband during that six month period. Her husband is already enrolled in Part A not Part B. The wife is not enrolled in either Part A or B. Do they both need to go ahead and enroll in Medicare (husband Part B) (wife A & B) or wait to about six weeks before her company stops paying for their Cobra coverage? Actually the Cobra will go for 18 months but the company will only pay the premium for 6 months.

 

[WCMason]

I have a prospect who just got laid off from her job. She turned 65 back in October. Under her severance package she will get full pay for six months and they will pay for her Cobra coverage for her and her husband during that six month period. Her husband is already enrolled in Part A not Part B. The wife is not enrolled in either Part A or B. Do they both need to go ahead and enroll in Medicare (husband Part B) (wife A & B) or wait to about six weeks before her company stops paying for their Cobra coverage? Actually the Cobra will go for 18 months but the company will only pay the premium for 6 months.

She can wait the six months before taking Medicare Part B. Medicare allows eight months after employment ends to get Part B as a special enrollment period without penalty. They will need to present to the SSA office Request for Employer Information forms (CMS L-564) completed by the employer in order to get this done.

 

[somarco]

wife is not enrolled in either Part A or B.

Why isn't she enrolled in Part A?

 

[WCMason]

Why isn't she enrolled in Part A?

I run into a lot a few people who do not enroll in Part A when first eligible due to having employer insurance. No loss unless they're hospitalized and don't enroll to get that secondary coverage after admission, given they backdate Part A effective date six months from enrollment date.

 

[BeeSelective]

Don't think cobra will avoid the part b penalty. Might want to check it out.

Part b has 10% penalty, if not properly enrolled. Also must have a proper enrollment period. Also may have t to wait.

 

[WCMason]

Don't think cobra will avoid the part b penalty. Might want to check it out. Part b has 10% penalty, if not properly enrolled. Also must have a proper enrollment period. Also may have t to wait.

COBRA is not creditable. However, if Part B is taken within eight months of active EGHP termination, no penalty. So taking Part B six months into COBRA is not a problem.

 

[bluediamond]

You can sign up for Part B without a penalty any time you have health coverage based on current employment. (COBRA and retiree health coverage don't count as current employer coverage.)

Should I get Part B? | Medicare.gov

COBRA is not creditable. However, if Part B is taken within eight months of active EGHP termination, no penalty. So taking Part B six months into COBRA is not a problem

 

[G.Gordon]

Yep, let her wait. She gets a free ride for six months. God bless her.

 

[ecotainer]

One reason people will not enroll in Part A while still working is once enrolled, you cannot contribute to an HSA.

 

[WCMason]

One reason people will not enroll in Part A while still working is once enrolled, you cannot contribute to an HSA.

That's right. And the six month backdating of Part A does cause a potential excess contribution penalty problem for those who are unaware of that rule and contribute right up to the time they do enroll.