CHAPTER 7
EMPLOYER (GROUP) PLANS Truths and Myths Truth: Employer-sponsored plans are weakening as a result of demographic and financial pressure facing employers, both large and small. Truth: You may be able to delay enrollment in Medicare Part B if you are an active employee at a large employer. Truth: “Who pays first” is a complicated issue, depending on the size of the employer. Myth: You cannot change from employer-sponsored plans to a privately purchased Medicare Advantage or Medigap plan. Can I Delay Enrollment in Medicare? If you are actively working, then you may be able to delay enrollment in Medicare Part B if you have health insurance provided by your employer. It is very important to understand that prescription coverage must be independently certified by the CMS as “creditable coverage.” It is also very important to understand that while you can delay, that is not the same thing as meaning that you should delay. Chapter 8 addresses this complicated topic. When you cease working, then you will have eight months to enroll in Medicare Part B. If you delay enrollment beyond the eight-month deadline, then you will face a late enrollment penalty described later in this chapter. For employers, allowing employees to delay enrollment in Part B is probably an inefficient solution, because the effect of having a full-time employee who is 65 years old (or older) is that the group premium, as a — 85 —