I’m turning 65 with retiree benefits … why do I need Medicare Part B?
Dear Toni: My wife and I will both turn 65 this year, myself in June and her in September. I have signed up for Medicare Part A only, and Carol will enroll in Part A soon.
I retired when I turned 63 with fantastic retiree benefits for both of us. Currently, I am being paid as a 1099 contract worker, so I do not have health benefits with the company where I am working part time.
We do not see a need to sign up for Medicare Part B because of our coverage under a retiree employer group health plan. Are we correct in this assumption? Neither the HR department nor Medicare can give us a straight answer.
Please explain what you would recommend. — Richard, Corsicana, Texas
Dear Richard: I would advise you to enroll in Part B now because you and Carol are in your Medicare initial enrollment period. Not enrolling can result in a nightmare.
A contract worker’s status is typically as an independent contractor who is hired to perform a specific task or project under a contract and is not considered an employee who receives employer benefits.
Medicare recognizes “true” employer and union health plans for someone working full time for that company if the working employee and nonworking spouse are covered. They may delay Part B without receiving a penalty in a that scenario.
COBRA and retiree health coverage do not count as current employer coverage. Individual health plans also are not considered employer coverage for those who are self-employed.
Richard, since you and Carol are covered by a retiree employer group health plan, I would recommend that you enroll in Medicare now. Doing so will prevent you and Carol from receiving a Part B penalty — a 10 percent charge for each 12-month period you could have had Medicare coverage but failed to enroll.
Enroll in Medicare the correct way when you are turning 65, or after retiring, because you do not get a second chance.
Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.
