I have been recently getting a lot of questions from people who are either retiring earlier than planned, have been laid off or furloughed due to COVID-19. They are not sure what to do and are trying to decide what options they have when it comes to Medicare.
It’s been an incredibly stressful time for a lot of people, so in this blog post, I want to get clear on how Medicare can work for you if this has happened to you, or may in the future.
According to Kaiser Family Foundation, between March and April of this year, the unemployment rate for people 65 and older jumped to 15.6% from 3.7%, with 1.2 million of them losing their jobs.
During times like this, people can make emotional or bad decisions, and they can be very costly. I want to make sure that no matter which boat you’re in, you’re doing this correctly.
Whether you’re retiring early, being laid off or furloughed, there are two separate situations you would fall under:
- You’re under 65 and trying to figure out Medicare.
- You’re over 65 and trying to figure out what your options are.
You’re Under 65
If you have already been laid off or furloughed, you cannot join Medicare until you’re 65. You can only join before 65 if you’ve had Social Security Disability for at least 24 months.
Here is some good news, if you are approaching 65 in the next 12 months, you can begin to look at your Medicare options to find a game plan.
I highly recommend that you:
- Look at your health insurance plan from your employer in case you do keep working for a while.
- Compare the cost and the options to Medicare to decide what plan is best for you.
I recommend this because if you retire earlier or you’re laid off, you have a plan in place for when you do turn 65.
You’re 65 and Over
If you’re still on an employer plan and have either been furloughed or expect to be laid off in the next few months, here’s what I want you to know.
You can still join Medicare after 65.
Once you leave that employer plan, you will have your employer fill out a Medicare form that essentially says:
- That you’ve been on that employer plan since you were 65.
- That your employer plan met Medicare rules.
Once you get that form, you will take it to your local Social Security Office, and they can enroll you in Medicare Part B, as well as the other parts of Medicare.
If you have been furloughed, or if you might be retiring sooner rather than later and you’re over 65, you will need to have your employer fill out this form.
I consider this form to be your “golden ticket” to Medicare.
Now, if you were to go back to work, you can always unenroll from Medicare. However, I do say that Medicare is pretty affordable and can be an excellent option if you do get furloughed or laid off.
With that said, if your company is offering COBRA, it will not meet Medicare rules, so be careful if you’re looking at this option.
At the Medicare coach, we’re an independent, unbiased Medicare expert. We do not sell any Medicare products, and so people turn to us for independent advice to make things as simple and easy as possible.
To get more information on Medicare, you can register for our next free online workshop “How to Make Your Best Medicare Decision Without Wasting Time On Research or Paperwork” by CLICKING HERE.
