Active Employee Medicare FAQ

Frequently Asked Questions about MEDICARE : 

Frequently Asked Questions about MEDICARE (Active Employee)

Disclaimer: 

Disclaimer The contents of this webinar and the web links therein are not meant to provide all the information you should consider when thinking about Medicare but is merely some basic information that might be helpful to you in your preparation for Medicare eligibility or retirement. This does not take into account individual situations, so some slides may or may not apply to your situation.

What is Medicare?: 

What is Medicare? Medicare is a federally sponsored program consisting of three parts: Part A – This covers charges associated with an in-patient hospitalization. Part B – This covers doctor’s charges, laboratory charges, physical therapy, etc., which are not related to in-patient hospitalization or prescription charges. Part D – This covers the prescription drug plan (Federal Legend drugs).

I’m still an active benefit eligible employee but will be turning 65 in a few months. Do I need to sign up for Medicare now?: 

I’m still an active benefit eligible employee but will be turning 65 in a few months. Do I need to sign up for Medicare now ? That depends. As long as you are an active benefit eligible employee enrolled in the medical insurance plan, the University of Missouri provides you with an employer group insurance plan and will be your primary insurance coverage. Medicare would be your secondary insurance coverage. (Continued on Next slide)

I’m still an active benefit eligible employee but will be turning 65 in a few months. Do I need to sign up for Medicare now?: 

I’m still an active benefit eligible employee but will be turning 65 in a few months. Do I need to sign up for Medicare now ? If you plan to keep working in a benefit eligible position after age 65, you may defer participation in Medicare Part B . Since there is a fee associated with those benefits, you’ll save some money. However, since Medicare Part A is free, you may want to sign up for that as soon as you are eligible unless you may want to enroll in a medical plan in the future that has a Health Savings Account (HSA) like the myOptions Health Plan. Enrolling in Medicare Part A will make an individual ineligible for an HSA.

If I don’t sign up for Medicare Part B now, will it cost me more to sign up later? : 

If I don’t sign up for Medicare Part B now, will it cost me more to sign up later? No, provided you: 1) meet Medicare’s requirements to delay enrollment and 2) sign up for Medicare 3 months before your planned retirement if you are working up to or beyond age 65. Participants have two opportunities to enroll in Medicare B without late penalty: When they turn 65, or When they become Medicare eligible due to disability, or When they retire, if they remain in an active employment benefit eligible position beyond age 65

If I don’t sign up for Medicare Part B now, will it cost me more to sign up later? : 

If I don’t sign up for Medicare Part B now, will it cost me more to sign up later? Medicare may provide the retiree with a form that the University of Missouri Retirement office completes to verify the retiree’s medical insurance coverage under their Employer Group Plan. You may fax, email or mail the form to our office where we will complete the form and return it directly to Medicare . Fax: 573-884-5422 Email: retirement@umsystem.edu Mail: Faculty and Staff Benefits, Retirement Programs, Woodrail Centre 1000 W. Nifong , Building 7, Suite 210 Columbia, MO 65211

IMPORTANT NOTE!: 

IMPORTANT NOTE! If the active employee who is eligible for Medicare does not have Medicare in place at the time of retirement, there may be a gap of medical insurance coverage by Medicare . The claims normally paid by Medicare will be an out-of-pocket expense for the patient until the date Medicare becomes effective. Since the retiree is not enrolled, Medicare won’t pay the claim and the University medical insurance plan won’t pay what Medicare w ould have paid.

I’m an active employee and I am enrolled in family medical coverage with the University. However, my spouse is older than me and will soon be eligible for Medicare. Does my spouse have to sign up for Medicare now? : 

I’m an active employee and I am enrolled in family medical coverage with the University. However, my spouse is older than me and will soon be eligible for Medicare. Does my spouse have to sign up for Medicare now? Not necessarily. As long as you are an active employee covered by the University of Missouri medical insurance plan, your spouse is eligible for primary insurance coverage through the University medical plan. We recommend that your spouse enroll in Medicare Part A as soon as he/she is eligible since it is free, unless you may want to enroll in a medical plan that has a Health Savings Account (HSA) like the myOptions Health Plan. Remember - Enrolling in Medicare Part A will make an individual ineligible for an HSA.

IMPORTANT NOTE!: 

IMPORTANT NOTE! If an active employee dies before retirement, the surviving spouse and dependent(s) who has been enrolled for at least one year prior to the active employee’s death is eligible for continued medical coverage under the retirement medical plan the first day of the month following the retiree’s death. If the surviving spouse or dependent is eligible for Medicare, he/she should sign up for Medicare Part A and Part B immediately.

IMPORTANT NOTE! (continued): 

IMPORTANT NOTE! (continued) It is important to note that under the retirement medical plan, Medicare is the primary insurance coverage and the University’s medical plan is the secondary insurance coverage. Therefore, if the dependent who is eligible for Medicare has not enrolled in Medicare Part B, those claims normally paid by Medicare will be an out-of-pocket expense for the patient until the date that Medicare Part B becomes effective. Medicare does not retroactively enroll participants.

Okay, I’m 67 and I’ve deferred my Medicare enrollment because I am still a full-time employee. Now I plan to retire next year. How do I get signed up for Medicare? : 

Okay, I’m 67 and I’ve deferred my Medicare enrollment because I am still a full-time employee. Now I plan to retire next year. How do I get signed up for Medicare? You’ll want to contact Social Security about three months before your retirement date. Here is the link to the Social Security website http://www.ssa.gov/ That’s about the same time you’ll need to submit the University of Missouri’s Notice of Intent to Retire form. That form can be found at the following link. https://uminfopoint.umsystem.edu/sites/hr/Benefits/intret.pdf

My spouse worked for the University but recently passed away. I’m not 65 but I have Medicare because of a disability. Does that matter? : 

My spouse worked for the University but recently passed away. I’m not 65 but I have Medicare because of a disability. Does that matter? Yes, it does. Your Medicare status determines the medical plan for which you are eligible. Please contact the Retirement Office for further information University of Missouri Retirement Office Contact Information: 573-882-9810 or 1-800-488-5288 retirement@umsystem.edu

I am an active benefit eligible employee who is also eligible for Medicare. I am enrolled in the University of Missouri Choice medical insurance plan. Do I need to sign up for Medicare Part D? : 

I am an active benefit eligible employee who is also eligible for Medicare. I am enrolled in the University of Missouri Choice medical insurance plan. Do I need to sign up for Medicare Part D? No, you do not need to sign up for it at this time. The University’s prescription drug plan will continue to provide you with creditable coverage as defined by Medicare.

As an active employee, can I sign up for Medicare Part A and also participate in the Health Savings Account in the myOptions plan? : 

As an active employee, can I sign up for Medicare Part A and also participate in the Health Savings Account in the myOptions plan? Only non-Medicare eligible employees may take advantage of the Health Savings Account . You will need to choose whether you wish to defer commencement of Medicare Part A and take advantage of the Health Savings Account or sign up for Medicare Part A and forfeit participation in the Health Savings Account. Either way, the myOptions plan is still available to you and may be an excellent medical insurance choice.

PowerPoint Presentation: 

This concludes this presentation on Medicare topics for Active employees. We hope this presentation was helpful. If you have further questions regarding Medicare as an active employee, please contact our office at 1-800-488-5288 or 573-882-9810 or email retirement@umsystem.edu QUESTIONS?