Leaving your job after 65? Taking these 3 actions in time can prevent gaps in your coverage.

Are you age 65 or older? Are you not yet enrolled in Medicare because you receive health coverage through your employer? Maybe you’ve wondered, “Can I have both employer insurance and Medicare?” Or maybe you’ve even thought, “How can I switch from my employer insurance to Medicare?”

Well, if you leave your job, you’ll probably have to transition away from the health insurance provided by your employer. Fortunately, you still have several options when it comes to covering your health care. But avoiding possible gaps in your coverage means taking the right steps at the right time.

So, if you’re losing coverage, here are some basic actions that will help make sure you’re covered.

Find out when your employer-sponsored coverage ends

There is no hard-and-fast rule about when your employer health coverage stops. With some employers, it ends on your last day of work. For others, it ends on the last day of the month that you leave your job.

The only way to be sure of when your employer coverage ends is by contacting your company’s human resources (HR) department. Be sure to get their response in writing so there won’t be any confusion about the date your coverage ends.

Why is it so important to know exactly when your employer-sponsored benefits stop? Because if you haven’t enrolled in alternative health care coverage by that date, you could be without any coverage at all.

Enroll in Medicare Parts A and B (Original Medicare)

If you are age 65 or older, one important way you can keep from going without coverage is to sign up for Medicare Parts A and B, often called Original Medicare, as soon as possible.

Medicare Part A covers services provided in a hospital setting, like nursing care and hospital stays. Medicare Part B covers services that are separate from a hospital stay, like doctor visits, lab tests and outpatient procedures.

To learn more about what Original Medicare covers and how much it costs, go to “What Parts A and B cover.”

So how can you switch from your employer health insurance to Medicare? You can sign up for Original Medicare on the Social Security website, which is maintained by the federal government. You will need to complete an enrollment form, available here.

You can retroactively begin your Medicare Part A coverage up to six months from the month you submit your completed enrollment form, but not earlier than the month you first became eligible for Medicare. Your coverage under Part B begins the month after you submit the completed form.

It’s important to remember that you’ll still have health care costs even if you have coverage under Original Medicare. For example, there is a deductible of $1,600 for each inpatient hospital benefit period before Original Medicare starts to pay. The government has worked with private insurers to create a set of plans designed to help with some of the costs associated with Original Medicare.

These options for additional coverage to limit your out-of-pocket expenses associated with Original Medicare include Medicare Supplement plans, Medicare Part D prescription drug plans and Medicare Advantage plans.

Explore your other coverage options

Once you’ve confirmed when your coverage ends and have signed up for Original Medicare, you’re in a good position to explore additional coverage options. Let’s take a closer look at some of these.

COBRA
What is COBRA? It’s a way for you to continue the same coverage you had with your former employer’s health plan under a federal law called the Consolidated Omnibus Reconciliation Act (COBRA). COBRA is typically a more expensive coverage option and can generally only be used for a limited period. But it does have the advantage of allowing you to temporarily keep a health plan you’re familiar with after leaving your job.

It's important to know that if you enroll in Original Medicare and also choose to get coverage under COBRA, COBRA will be designated as the secondary insurer. That means COBRA will only pay if there are costs that aren’t paid by Medicare.

To learn more about how Original Medicare and COBRA work together, visit the Centers for Medicare & Medicaid Services website here.

To learn more about COBRA in general, go to “Answers to your top 5 questions about COBRA.”  

Medicare Supplement
Medicare Supplement plans, sometimes called Medigap plans, are provided through private insurers. By paying a monthly premium for a Medicare Supplement plan, you can get financial help paying for some of the costs not covered by Original Medicare.  

To learn more about how Original Medicare and Medicare Supplement plans work together, go here.

Medicare Part D
A good option if you want to add prescription drug coverage to your Original Medicare coverage may be a Medicare Part D plan, which provides stand-alone prescription drug coverage and is specifically designed to work with Medicare

Parts A and B.

To learn more about stand-alone prescription drug coverage, go to “What you need to know about Medicare Part D.”

Medicare Advantage
Another option is a Medicare Part C plan, often referred to as a Medicare Advantage (MA) plan. Original Medicare doesn't include nonemergency vision, hearing or dental benefits, but many MA plans do include these benefits. And you can bundle your prescription drug benefits and medical benefits in a single MA plan called a Medicare Advantage Prescription Drug (MAPD) plan, making these types of plans a good all-in-one option for your health care coverage.

Speaking to a licensed agent is a good first step in learning how you can use an MAPD plan to get all the coverage included in Original Medicare plus many additional benefits.

To learn more about Medicare Advantage, go to “Is Medicare Advantage right for you?” 

To talk with a licensed agent about your Medicare options, call:
1-833-206-7237 ${tty}
${hours}

The bottom line

Leaving any job represents a major transition in life. It’s even more significant when you are over 65. Make sure you don’t go without health coverage by taking a smart approach to leaving the workforce. Taking the right steps in a timely manner can set you up for your best health for years to come.