Understanding the Medicare Alphabet Soup
Human resources teams are critical in guiding employees through their benefit options, but when it comes to Medicare, HR is not equipped to counsel employees directly. That is where a Medicare specialist comes in. However, here are the basics of Medicare:
Medicare Part A covers inpatient / hospitalization and expenses related to a hospital stay.
Medicare Part B covers a whole list of outpatient / medical services.
Medicare Part C, also known as Medicare Advantage, provides additional coverage such as vision, hearing, dental, and wellness programs, with many also including prescription drug coverage.
Medicare Part D provides outpatient prescription drug coverage as a stand-alone if an individual is not already receiving this coverage through a Medicare Part C plan.
Medicare Medigap includes a whole range of letters that are supplemental insurance policies to help pay out-of-pocket cost for Parts A and B.
Why Choosing the Right Coverage Matters
When someone files for Social Security benefits, they are automatically enrolled in Medicare Parts A and B. However, they can choose to opt out of Part B if an employer plan covers them or they have insufficient credits. There are some risks to dropping coverage that employees should investigate and consider, including potential gaps in coverage and late enrollment penalties. This Medicare.gov fact sheet has more details on how employees can get started navigating these important decisions.
If the employee has not yet filed for Social Security, they can enroll in the enrollment period that runs from three months before until three months after their 65th birthday. Or they can wait to enroll until they stop working. Medicare.gov offers more insights on signing up for Medicare for employees who are working past 65.