What You Need to Know About Turning 65 and Enrolling in Medicare

POV: You're an employee about to turn 65 curious about your health insurance options. Do you enroll in Medicare? Do you wait?
First off, happy birthday and congratulations on this milestone birthday. Even if you continue working and stay on your employers plan, it’s important to understand how Medicare works and how it fits into your healthcare options. This is especially if you’re part of an Individual Coverage Health Reimbursement Arrangement (ICHRA) plan through your employer. This article is meant to help you walk through your options andclarify some common misconceptions.
Medicare Is for Everyone Over 65
Many people think they only need to enroll in Medicare onlyif they are retiring or if they are drawing Social Security benefits. This is a common misunderstanding. Medicare is available to everyone when they turn 65, regardless of whether you plan to retire or continue working. By enrolling, you’re not only protecting your health but also making the most of the benefits you’ve earned through years of hard work. Another way to look at it is you're claiming what is rightfully yours
Why You Should Enroll
- Avoid Late Enrollment Penalties: If you don’t enroll in Medicare when you first become eligible at age 65, you may face penalties that increase your premiums later on. These penalties can add up over time, making your healthcare more expensive.
- Access to Essential Coverage: Medicare helps cover a variety of medical expenses, including hospital stays, doctor visits, and some preventive services. Enrolling ensures you have access to these essential benefits.
- Easier Enrollment Process: Enrolling in Medicare at 65 is straightforward. As you age, the enrollment process can become more complicated, and waiting too long can lead to gaps in your coverage.
You Don’t Have to Draw Social Security
A common myth is that you must be receiving Social Security benefits to enroll in Medicare. This is not true. You can enroll in Medicare even if you’re still working and haven’t started drawing Social Security.
How to Enroll in Medicare
- Automatic Enrollment: If you’re already receiving Social Security benefits when you turn 65, you’ll be automatically enrolled in Medicare Part A and Part B.
- Manual Enrollment: If you’re not receiving Social Security, you’ll need to sign up during your Initial Enrollment Period, which begins three months before your 65th birthday and lasts for seven months (three months before, the month of, and three months after).
- Online or In-Person: You can enroll online at the Social Security Administration’s website, by phone, or in person at your local Social Security office.
How Medicare Works with Your ICHRA
If you’re enrolled in an ICHRA plan, you will typically transition from an individual health insurance plan to Medicare. At a minimum, you must enroll in Medicare Parts A and B. However, many individuals also enroll in Part D (Prescription Coverage) and Medigap (Supplemental) policies. ICHRA reimburses all types of Medicare. An ICHRA can help cover Medicare Advantage plans.
Some employees ask us if they can keep their current individual health insurance plan. Generally speaking. you can do so through the end of the plan year. However, it's rarely in your interest to do so. Medicare coverage is more robust than their individual plan and is also significantly cheaper. We find that employees premiums go from $1,000 -$1,500 per month to $300-$400 per month.
If your employer offers a Health Wallet, you can pay for out-of-pocket medical expenses. Many employees are able to pay for all premiums and their full year of medical expenses via an ICHRA.
How Medicare Works with Group Health Insurance
Employees turning 65 are also eligible to enroll in Medicare if they are offered a traditional group health insurance plan. If you have both Medicare and a group health insurance plan, the group insurance typically pays first, and then your Medicarecan help cover any remaining costs
Conclusion
As you get closer to 65, don’t forget about Medicare! It’s important to enroll on time to avoid penalties and ensure you have the healthcare coverage you need. Remember, you don’t have to retire or draw Social Security to sign up. If you have questions about Medicare or how it integrates with your ICHRA, feel free to reach out for more information. Your health is worth it!
You got questions, we got answers!
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ICHRA stands for Individual Coverage Health Reimbursement Arrangement (ICHRA). This health arrangement allows you to pick your own health insurance plan using your employer’s monthly tax-free allowance. These funds can be used to cover insurance premiums, including dental and vision, as well as qualified medical expenses.
What are the benefits of an ICHRA?
- Your health plan belongs to you, and you can keep your health insurance if you leave your company.
- You get to choose from any qualified health plan on the market. Venteur can help you select a plan where your preferred doctors, providers, and prescriptions are covered.
- If you choose a health plan that costs less than your employer contribution, the extra funds are added to Venteur’s Health Wallet, an account used to pay for qualified medical expenses.
Group health insurance plans are purchased by companies and offered to their employees. Traditional group plans take a one-size-fits-all approach to healthcare, giving employees limited choice when it comes to their coverage options. Employer-sponsored ICHRAs give employees a tax-free allowance to pick any plan on the public exchange that meets their unique needs.
You can use money in your Health Wallet to pay for qualified medical expenses, as the IRS defines in Publication 502. The full list is available here: https://www.venteur.com/post/213-d-reimbursements-or-health-wallet.
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Please note that some expenses, like gym memberships or vitamins, are only reimbursable if you obtain a doctor's note confirming medical necessity.
1. What Your Health Wallet Balance Represents:
Your Health Wallet balance could be thought of as a measure of the medical expense reimbursements you're entitled to under your health insurance plan. It's essential to note that it isn't quite like a bank account with a set amount of accessible cash. Rather, consider it as a marker of what you're eligible to get reimbursed for as part of your ICHRA plan.
When you shop for insurance through the app, you will see a dollar amount that is available for out-of-pocket expenses. This amount is what gets contributed to your Health Wallet account for your use in reimbursements. However, depending on how your employer has setup the account, it may be available immediately or it may be available after every monthly invoice.
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2. Your Health Wallet Account:
When your account is setup, there is a predetermined way on how your Health Wallet functions for your reimbursement funds. The first scenario is that there is money that has been set aside at the start of the period which can be used for your reimbursements. You may see the entire amount entitled to you is immediately available for medical expense reimbursements. It's like having a store of health benefits ready to be used when you need them.
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3. Simplifying the Health Wallet Experience:
We're always striving to enhance your experience and are currently working on making the Health Wallet balance operate more like a pre-paid debit card. This shift aims to streamline the funding process further and allow you quicker and more direct access to your health reimbursements, leading to an even smoother journey for you.
Remember, whether your account shows the funds immediately or after every invoice, it doesn't affect the overall sum you're entitled to under your ICHRA plan; it merely affects the timing of when you will receive the reimbursements.
Your trust is important to us, and we're continually striving to make our services better for you. If you ever have questions about your Health Wallet or anything that would help make for a more understandable benefits experience with us, don't hesitate to reach out to our customer service team.
We’ve built an AI model that uses something called a 'composite patient'. We use over 30 years of historical claims data and your age, gender, and zip code to predict your total healthcare spending under each plan. As you add additional information to your profile--specific doctors, prescriptions, risk profile, etc.--your list of recommendations becomes more personalized.
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