What Older Workers Need to Know About Medicare | Law Firm Newswire

What Older Workers Need to Know About Medicare

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) July 15, 2016 – Older workers need to be wary of some potential Medicare errors that may come up if they intend to continue working past the age of 65.

Approximately one-third of Americans within the age group of 65 to 69 stay in the workforce. This rate is 50 percent higher than it was ten years ago. Thus, an increasing number of older Americans are not getting Medicare upon reaching age 65.

Andrew H. Hook, a prominent Virginia elder law attorney of Hook Law Center with offices in Virginia Beach and northern Suffolk, states, “Older workers are advised to be aware of their options with respect to Medicare so that they can make informed decisions about their health care coverage.”

If an older individual keeps working, and is covered by an employer’s group health insurance, it is unlikely that the employee will need Medicare. In addition, if the employee loses health insurance through the employer, and then gets Medicare, after which the employee secures a new position that offers health insurance, the employee will not have to keep Medicare. This is frequently surprising to people who believe that they have to retain Medicare coverage for the remainder of their lifetime after their initial enrollment.

However, there are exceptions to, and warnings concerning, the general rule. In order to avoid possible difficulties, keep in mind these three principal instructions:

1. Employees who work for small businesses may be required to enroll in Medicare. If an employee is approaching age 65, and works for an employer with fewer than 20 employees, then the employee who is about to turn 65 will probably have to enroll. In health insurance plans for small businesses, Medicare is the primary payer of insurance claims for employees age 65 and older. The secondary payer is the employer plan.

2. Employees should review their employer’s Part D plan. Those who work for larger companies do not confront this enrollment rule. However, there is a technical requirement for the avoidance of Medicare coverage. One requirement of Medicare is that an individual’s employer drug coverage is creditable, which means that it has to be as comprehensive as a Medicare Part D prescription drug plan. If it is not, the employee would be required to enroll in a Part D plan. If the employee fails to enroll, there could be premium surcharges against the employee for failing to enroll in a timely manner. Therefore, employees nearing age 65 are advised to confirm with their human resources manager that their drug coverage complies with this rule.

3. Consider enrolling in Medicare Part A. In the event the employee does not have to enroll in Medicare at age 65, the employee is encouraged to enroll in Medicare Part A, which pays for hospital expenses and brief stays in nursing homes. Those who are eligible for Social Security due to their employment records can obtain a waiver of Part A premiums. Usually, this requires the employee to work 40 quarters in positions in which the employer pays Social Security payroll taxes.

In this case, Medicare Part A is a secondary payer, meaning that it can assist with expenses that are not covered by the group insurance provided by the employer. Although the deductible for each hospital stay is $1,260, medical expenses can easily become more expensive than that. However, enrolling in Part A has a major disadvantage in that the employee will lose eligibility to contribute to a tax-advantaged HSA. If an employee currently has an HSA, a comparison should be made between the benefits of Part A and the loss of the ability to make contributions to the account. If the employee opts to cease contributing to an HSA, they can still retain any funds that have accumulated. Those funds will remain tax-free provided the employee spends them on qualified medical expenses.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • Tips For Paying Off That Holiday Debt
    <p>Shoppers in the U.S., on average, incurred $1,054 in debt over the 2017 holiday season. If those shoppers chose to pay only the minimum payment of $25, they are STILL paying off that debt and will be until 2023. At the average interest rate of 15.9%, these folks ended up paying a total of $500 [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/12/06/tips-for-paying-off-that-holiday-debt-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/12/06/tips-for-paying-off-that-holiday-debt-2/" target="_blank">Tips For Paying Off That Holiday Debt</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Don’t Become a Victim of the “Grandparent Scam”
    <p>What is the “grandparent scam” and how does it work? Unfortunately, seniors are often the targets of scams looking to cheat them out of their money – often to the tune of tens of thousands of dollars. Although it has been around for years, in recent months, there has been a resurgence in the number [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/11/29/dont-become-a-victim-of-the-grandparent-scam-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/11/29/dont-become-a-victim-of-the-grandparent-scam-2/" target="_blank">Don’t Become a Victim of the “Grandparent Scam”</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Home for the Holidays: Conversations for Every Stage of Life
    <p>It’s that time of year again when families gather to celebrate the holidays. For many, it may have been months or a year since they visited with family and a lot may have changed in the interim. Perhaps we notice that Grandpa is not as steady on his feet as he was, or that Mom [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/11/22/home-for-the-holidays-conversations-for-every-stage-of-life-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/11/22/home-for-the-holidays-conversations-for-every-stage-of-life-2/" target="_blank">Home for the Holidays: Conversations for Every Stage of Life</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • AS WE GATHER ‘ROUND THE TABLE: INVOLVING THE ELDERLY IN FAMILY FESTIVITIES
    <p>The holidays present an opportunity for loved ones near and far to gather together for celebration and reminiscing. However, it is important to remember that the holidays may trigger a spell of depression in the elderly and is therefore a particularly important time to assess a senior family member’s needs. We encourage our clients to [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/11/15/as-we-gather-round-the-table-involving-the-elderly-in-family-festivities-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/11/15/as-we-gather-round-the-table-involving-the-elderly-in-family-festivities-2/" target="_blank">AS WE GATHER ‘ROUND THE TABLE: INVOLVING THE ELDERLY IN FAMILY FESTIVITIES</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • The Corporate Transparency Act – What Does it Mean for Your Small Business?
    <p>The Corporate Transparency Act was enacted in 2021 to help combat money laundering by increasing transparency, specifically by requiring business entities to report information about its beneficial owners to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN recently issued a final rule that describes who must file a beneficial ownership report (BOI report), [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/11/08/the-corporate-transparency-act-what-does-it-mean-for-your-small-business/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/11/08/the-corporate-transparency-act-what-does-it-mean-for-your-small-business/" target="_blank">The Corporate Transparency Act – What Does it Mean for Your Small Business?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required