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If you are employed in a job that provides health insurance past age 65, you can delay signing up for Medicare without penalty, as long as certain conditions exist. In the case of prescription drug coverage, the plan has to pay on average as much as the standard Medicare prescription drug coverage.
With improvements coming to Part D going into effect January 1, some employer plans that qualified as “creditable” because their benefits were at least as good as those offered by Part D before the changes may no longer be eligible. For instance, starting January 1, the out-of-pocket maximum under Part D will be $2,000 a year.
If a private plan doesn’t cap the amount policyholders have to pay at $2,000 or less a year, the policy may not suffice as a substitute allowing beneficiaries to delay enrolling in Part D without a penalty.
[EXTERNAL LINK] - Medicare Upgrades Could Disqualify Your Private Plan
With improvements coming to Part D going into effect January 1, some employer plans that qualified as “creditable” because their benefits were at least as good as those offered by Part D before the changes may no longer be eligible. For instance, starting January 1, the out-of-pocket maximum under Part D will be $2,000 a year.
If a private plan doesn’t cap the amount policyholders have to pay at $2,000 or less a year, the policy may not suffice as a substitute allowing beneficiaries to delay enrolling in Part D without a penalty.
[EXTERNAL LINK] - Medicare Upgrades Could Disqualify Your Private Plan