Facing a possible life event impacting Medicare eligibility?
My warehouse site job has been closed since March 2020 because of COVID-19 and had placed me on furlough status in April. As of today, my employer is still unable to reopen their site to recall their employees back to work due to CA State's continued lockdown until further notice. Therefore, I am still on furlough status with my employer to retain my employer’s health insurance. Because my non-profit employer has been losing very extensive funds with limited operations, layoffs may now happen. I’m scared I will get laid off.
I am now facing a possible job layoff event. The situation is that I still depend on my employer for my group health insurance coverage and income. Temporary unemployment insurance for 39 weeks and pandemic payments until the end of July, plus family contributions, covers my lost income. I’m still too young for Medicare and full Social Security benefits, two months short of Medicare Parts A and B for September 2020 and 17 months short of full Social Security for November 2021. If I lose my job now, I will be left without my employer’s health insurance in August 2020, possibly forcing me to go into the health marketplace in August for my one-month gap coverage until my Medicare eligibility starts in September 2020.
Someone told me that as long as I am in the job marketplace, mind you, I’m unemployed here, my Medicare is to be saved like an IRA until my full retirement of November 2021. I have been told to have fun and to stop worrying because my employer values and will keep me. I disagree with her advice but do not want to argue with this person because of CA’s lockdown and bad economy situation. She does not appear to listen to my “warnings” of my possible life event. I feel like I am in a limbo: to keep my health care, I cannot not look for and accept new work until further notice.
With my upcoming eligibility, Medicare “warns” me that if I do not enroll in Parts A and B without employer’s health insurance, either during its regular or special enrollment periods, I will face a 10% penalty for one year than if I do sign up later, even one day late. What am I to do about a critical decision? I may have to pay for 14 more months of Medicare A-C expenses with Medicare alone without Social Security, but at the same time, do not want to break government’s law. I can take a chance to get employer coverage in a new job, but it must start in August, no later. I cannot afford to make a mistake. Any advice to decide on my situation? Thank you.
10 Answers
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You need to contact your HR department and ask if they will be able to complete the paperwork that allows you to delay Part B until you are no longer covered by your employers plan.
If you have "creditable coveraage" you will not be charged a Part B penalty.
But do post this question on Bogleheads. They are very very smart.
I will look into bogleheads.org website. I will be 65 this September and, yes, did get free Medicare Part A. However, my full Social Security starts when I turn 66.2 in November 2021 because of the year I was born, even though I will be 65 this year. I want to wait for my full SS to avoid lifelong monthly benefit cuts. I will ask HR about my health coverage with them, but I think I must still be active as furloughed or actually working instead of laid off. My employer has over 20 employees and may delay taking my Part B.
There is no reason to delay part A.
If you delay part B or Part D, you will end up with a lifelong penalty.
See you on Bogleheads!
Yes, I will be eligible. However, I will have to pay COBRA's full cost of about $1,100 vs only $27 with the Marketplace for my one month. Cost savings is vital with only my unemployment income. Thank you.