Enrolling into Part B at Age 65

[kstein]

Here is a situation I just came across:

Client dob 7/1950. His wife signed him up for Part A only eff 7/1 (he was working and had employer coverage on him only at a business with >20 employees). Today he calls me and says he quit that job and 9/1 will work elsewhere.

I review his option at employer and determine Medicare + supp + PDP is a better deal.

Now the question:
I go to sign him up for Part B in what way? I started down the SSA.gov site but it kept throwing me into the monthly retirement spot, asking for income, number of marriages, etc. so I stopped that path b/c he doesn't want SS now.

Would he just use the 40B document since he is less than 3 months from his t65 birthday? That's what I am thinking.

TIA

 

[Bob_The_Insurance_Guy]

First find out where he will be working, and if they offer medical coverage, THEN proceed as you suggested.

 

[DS4]

Either,
1) 40B only, or,
2) 40B + L564

I would do #2 and hand deliver to Social Security.

(I didn't sleep at a Holiday Inn last night so I'm not sure which is correct).

 

[G.Gordon]

Option 2............................

 

[kstein]

Do u think he needs the l564 because he is less than 3 months from his initial part B effective date?

I did look at his employer option at his new job. $250/mo w $6450 out of pocket max

 

[insuranceconceptscindy]

If you did 40b only, it will push his B date out further. Each month after birth month is delayed. Do 40b+L564 to get a 9/1 start.

 

[WCMason]

If you did 40b only, it will push his B date out further. Each month after birth month is delayed. Do 40b+L564 to get a 9/1 start.

I have had a few clients get turned away by SSA trying to do this. The line they give is that their system gives priority to IEP over SEP so they can't--or won't--process an SEP Part B enrollment until after the IEP has ended, in this case Nov 1.

 

[kstein]

If you did 40b only, it will push his B date out further. Each month after birth month is delayed. Do 40b+L564 to get a 9/1 start.

Why would the 40b only push it out further? I hate situations where the correct outcome depends on SS !

 

[WCMason]

Why would the 40b only push it out further? I hate situations where the correct outcome depends on SS !

By applying as IEP in the month after his birth month he would have a two month delay in the start of Part B. If SSA granted the SEP for leaving employer coverage immediately then there would be no delay, so the IEP would push it out further than using the SEP. My experience, as mentioned, has been that SSA will not recognize the SEP until after the IEP has expired. I always caution my prospects who tell me they are planning retirement in the three months after their 65th birth month that they either need to take Part B a little early to avoid the delay, or prepare to face a little time on COBRA (or at least prepare keep their COBRA option open until Part B takes effect if the gap is two months or less).

I did have one client who told me that he was initially told that the SEP had to wait until the IEP expired but he made so much noise they overrode it. Every other client who tried to use the SEP-LEC in the three months after their 65th birth month has been told to wait until IEP expired, no exception.

 

[TwoCents]

By applying as IEP in the month after his birth month he would have a two month delay in the start of Part B. If SSA granted the SEP for leaving employer coverage immediately then there would be no delay, so the IEP would push it out further than using the SEP. My experience, as mentioned, has been that SSA will not recognize the SEP until after the IEP has expired. I always caution my prospects who tell me they are planning retirement in the three months after their 65th birth month that they either need to take Part B a little early to avoid the delay, or prepare to face a little time on COBRA (or at least prepare keep their COBRA option open until Part B takes effect if the gap is two months or less).

I did have one client who told me that he was initially told that the SEP had to wait until the IEP expired but he made so much noise they overrode it. Every other client who tried to use the SEP-LEC in the three months after their 65th birth month has been told to wait until IEP expired, no exception.

What I don't understand is when is Part B started retroactively by SSA? Isn't that why people with HSAs are advised to stop contributing to the account 6 months prior to applying for Medicare? The gov't needs to make up their collective mind!