How Do I Choose Between Medicare and Employer Coverage?

Americans attaining the age 65 and more account to nearly 20. Now the point is whether they are retired or working, they must know if they need to enroll in Part A and B Original Medicare. Knowing it is more important, if they have employer coverage meeting needs right now.


There are several factors worth considering before enrolling in Medicare Supplements Plan, if you are eligible.  In most cases, your eligibility means getting enrolled in Part A Medicare, if employer coverage already exists. This means there is a qualifying work history, such that the coverage for Part A is premium-free and it costs nothing to get Part A benefits. It indicates you qualify for the Part A premium-free coverage if your spouse or you work for a period of minimum 40 quarters that is exactly 10 years, while you are paying the taxes of Medicare. However, it is best contact your union or employer to know the benefits and to see if you need to sign for Part A Medicare. If you have to enroll in Part A after the end of the employer coverage, you may be eligible for the special period of enrolment.


Part A indicates the covers that are allowable, limited health care at home and institution care in some nursing facility, essential medical hospital expenses and hospice care.


A few things to bear in mind:

  • Your employer existing coverage alters the details of benefit once you get enrolled with Medicare. This means you should check before your decide with the employer. When enrolled in Medicare Supplement Plans, you may have to fill a questionnaire so that it is determined which Medicare coverage pays for your health care first.
  • If your employer coverage is health saving account, there is no way you can have contributions done even after enrolling in Medicare and this means you must face tax penalty.
  • If you are ineligible for Part A premium-free, besides you fail to enroll when eligible with Medicare Supplement plans means you need to pay a penalty of 10% of the premium for twice the year you delayed in buying the coverage. However, for Medicare Part A, if you are qualified during special enrolment period, you may sign up without the late penalty.


Medicare Part B features a monthly premium. Beneficiaries covered by health plans delay Medicare Part B enrollment. There is penalty for late-enrolment even with Part B Medicare after the Medicare Supplement Plans initial enrolment period.