T65, IRMAA, COBRA, and more fun things.
- Thread starter sshafran
- Start date
I said 18 months, not 8. And the plan presented by op called for retirement on 12/31/2018.
If client should then take cobra for all of 2019 and the first half of 2020, client would have been eligible for medicare in all of 2019 and subject to a penalty for not taking it.
If client waits until 01/04/2019 to retire and that gets him insurance from active employment for January 2019 and client would then take cobra from Feb 2019 to Jul 2020, client may not have a penalty. (Not prepared to state that absolutely at this point.)
I do hope that you, as a licensed agent, are not suggesting that another licensed agent tell his client he can safely go without Part B for 8 months.
I can't believe I'm engaging this but....
If you're going to quote kstein, at least have the decency to, first, repost your original response to her before you deleted it.
-I edited my comment to remove what I remember of your response because what you said has no place here. You should be careful how you tread.
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Because I don't appreciate LD accusing kstein - or any other agent on here, for that matter - of wrong doing, I am happy to quote you.
- Thread starter
- #24
Thanks for all (well, mostly all, ahem) of the replies.
Based on what I see here and what I could find outside of the forum - the core reason - way beyond any other - for him to take Medicare + Medigap is coordination of benefits. The thought that "the employer plan can exclude the 80% Medicare should have paid." Thanks @WCMason
The LEP is also an issue - but I think the bigger factor is ^. The penalty isn't killer, but the fact that it's lifetime makes it a big deal.
One of the most bizarre posts I've read in years is that he should get A+B+D+MSA+COBRA's Dental/Vision because it's like getting a Menard's rebate in advance - a store credit. Um, no. Not really. My client is trying to avoid IRMAA - he's not concerned about $110 for Plan G. $110 as a percentage of his total premium is low. The "cute" attempt to add a large deductible to save $110 is a bit insane. Nope. No no no... not a good idea LD.
He's surprised Plan G is only $110 - and he laughed at the deductible being $185. Again, $110 is a drop in the bucket compared to IRMAA - and a non-factor.
One of the 2nd most bizarre posts that I've read is that he should work until 1/4/19 because it can possibly magically erase a LEP. While the poster of the statement said that he is not prepared to state that absolutely at this point - the idea that deferring the situation one extra magic month would make a difference is a bit entertaining.
This has been helpful - it's a situation I've not yet run into before - I appreciate the help!
Based on what I see here and what I could find outside of the forum - the core reason - way beyond any other - for him to take Medicare + Medigap is coordination of benefits. The thought that "the employer plan can exclude the 80% Medicare should have paid." Thanks @WCMason
The LEP is also an issue - but I think the bigger factor is ^. The penalty isn't killer, but the fact that it's lifetime makes it a big deal.
One of the most bizarre posts I've read in years is that he should get A+B+D+MSA+COBRA's Dental/Vision because it's like getting a Menard's rebate in advance - a store credit. Um, no. Not really. My client is trying to avoid IRMAA - he's not concerned about $110 for Plan G. $110 as a percentage of his total premium is low. The "cute" attempt to add a large deductible to save $110 is a bit insane. Nope. No no no... not a good idea LD.
He's surprised Plan G is only $110 - and he laughed at the deductible being $185. Again, $110 is a drop in the bucket compared to IRMAA - and a non-factor.
One of the 2nd most bizarre posts that I've read is that he should work until 1/4/19 because it can possibly magically erase a LEP. While the poster of the statement said that he is not prepared to state that absolutely at this point - the idea that deferring the situation one extra magic month would make a difference is a bit entertaining.
This has been helpful - it's a situation I've not yet run into before - I appreciate the help!
Orion1
Expert
- 35
Not sure on the signifiance of January 4th.
My questions
1) What is the wife's age?
If not medicare eligible then the cobra option would make sense if she becomes medicare eligible during his cobra coverage period also by default she would be covered under cobra but at what cost?
2) If eligible for Cobra what is the cost versus what he would pay for both Him and His wife with MA's or Supps? (If Eligible) no brainer compare if they are already eligible.
3) If he would be hit with the IRMAA due to hitting the joint celing of 170K for 2018 is your thought to verify that cobra provides qualifiying coverage that would prevent both the Part B and Rx Penalties? (Answer is No)
To answer your questions directly.
Any reason to wait for Medicare + IRMAA + Supplement?
It depends. The only reason I could see is because there will be a falloff in income that would reduce or eliminate the IRMAA alltogether but that would matter if/when SSA makes a determination which they could appeal. ( Do not wait avoid the LEP appeal later)
Or any reasons (other than the loss of the SEP) to decline COBRA and go straight Medicare?
Loss of SEP is a big one if it matters to their situation and how they enroll once he leaves his group coverage.
Note because she is also covered under his group coverage you must not forget/skip her coverage as if he leaves his group plan he may not be able to rejoin or worse loose benifits if tied to a retirement package (Company pays for x months of coverage of group)
The main issue with this is his wife's coverage and what that would mean. Cobra is not considered qualifying coverage per se. The wife may be able to pickup coverage under Cobra if he enrolls in Medicare but the cobra cost for her alone will be the key.
My questions
1) What is the wife's age?
If not medicare eligible then the cobra option would make sense if she becomes medicare eligible during his cobra coverage period also by default she would be covered under cobra but at what cost?
2) If eligible for Cobra what is the cost versus what he would pay for both Him and His wife with MA's or Supps? (If Eligible) no brainer compare if they are already eligible.
3) If he would be hit with the IRMAA due to hitting the joint celing of 170K for 2018 is your thought to verify that cobra provides qualifiying coverage that would prevent both the Part B and Rx Penalties? (Answer is No)
To answer your questions directly.
Any reason to wait for Medicare + IRMAA + Supplement?
It depends. The only reason I could see is because there will be a falloff in income that would reduce or eliminate the IRMAA alltogether but that would matter if/when SSA makes a determination which they could appeal. ( Do not wait avoid the LEP appeal later)
Or any reasons (other than the loss of the SEP) to decline COBRA and go straight Medicare?
Loss of SEP is a big one if it matters to their situation and how they enroll once he leaves his group coverage.
Note because she is also covered under his group coverage you must not forget/skip her coverage as if he leaves his group plan he may not be able to rejoin or worse loose benifits if tied to a retirement package (Company pays for x months of coverage of group)
The main issue with this is his wife's coverage and what that would mean. Cobra is not considered qualifying coverage per se. The wife may be able to pickup coverage under Cobra if he enrolls in Medicare but the cobra cost for her alone will be the key.
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Orion1
Expert
- 35
- 6,457
Cobra HEALTH INSURANCE and Medicare together are not a particularly useful option for this person. Cobra DENTAL and Cobra VISION may be.
To determine his IRMMA amount they will go back to tax returns from two years ago, however , if his income will be lower in retirement you can submit a life changing event form to reduce or eliminate the IRMMA. See attached.
Also , if he goes with Cobra only for 18 months he will have a Part B late enrollment penalty when he enrolls. The cleanest way to do this will be to bite the bullet and go full blown Medicare.
Also , if he goes with Cobra only for 18 months he will have a Part B late enrollment penalty when he enrolls. The cleanest way to do this will be to bite the bullet and go full blown Medicare.
COBRA and Medicare do not play well together. See links I purloined from LD . . .
COBRA and Medicare coordination - Medicare Interactive
https://www.medicarerights.org/PartB-Enrollment-Toolkit/Medicare-and-COBRA-Insurance-Scenario.pdf
It's dangerous to keep COBRA when you're eligible for Medicare
Those Receiving COBRA Coverage Must Sign Up for Medicare Part B at 65 to Avoid Penalty
https://www.aicpastore.com/Content/...wsletters/Articles_2009/CPA/Sep/COBRATrap.jsp
COBRA and Medicare coordination - Medicare Interactive
https://www.medicarerights.org/PartB-Enrollment-Toolkit/Medicare-and-COBRA-Insurance-Scenario.pdf
It's dangerous to keep COBRA when you're eligible for Medicare
Those Receiving COBRA Coverage Must Sign Up for Medicare Part B at 65 to Avoid Penalty
https://www.aicpastore.com/Content/...wsletters/Articles_2009/CPA/Sep/COBRATrap.jsp
