OT: Medicare Part B Question

[cd_davis]

Since many of us are Senior Cyclists possessing a wealth of worldly knowledge, I request guidance on Medicare Part B cancellation. I have carried for several years Medicare insurance Part A and B, plus a BC/BS Medicare Advantage policy. The company for whom I have consulted with for two years offered me a VP position. Accepting the offer this week, I begin August 1. The company provides comprehensive benefits including excellent health care coverage.
So I shall cancel the Advantage Plan, that is clear.
What is not so clear is cancelling Medicare Part B (Social Security does not like that, makes it difficult to cancel and re-enroll in the future). The company health care benefits clearly duplicate the coverage provided by Part B. And if I had been working for a company with benefits upon being eligible for Part B, I would not have had a requirement to enroll.
I do not want to pay the monthly Part B premium. So I am correct in cancelling? What has your experience been?
Cannot get Social Security on the phone.
Thanks Chris

[paredown]

I know they talked about going back to work and what would happen with Part B--and this seems to cover it:

http://www.aarp.org/health/medicare-insurance/info-05-2008/ask_ms__medicare_5.html

The key is that the employer insurance becomes primary--and there should be no penalty to go from that back to 'B' in the future.

[Ken Robb]

I know they talked about going back to work and what would happen with Part B--and this seems to cover it:

http://www.aarp.org/health/medicare-insurance/info-05-2008/ask_ms__medicare_5.html

The key is that the employer insurance becomes primary--and there should be no penalty to go from that back to 'B' in the future.

Good explanation! I did not enroll in Part D for several years because my prescriptions only cost me $20 for 90 days. Last year I decided to enroll in a local Medicare plan run by Scripps Health. This plan provides prescription coverage that essentially forced my enrollment in Part D so I have to pay about $37 per month as a "late enrollment penalty". I knew this going in and figured that it may very well save me $$ in the future assuming that I may need a more expensive regimen of drugs.

Like most insurance decisions it's probably a mistake to give too much weight to one's current drug needs/expenses vs. potential needs expenses as we age.

[paredown]

I took a deep breath and enrolled for Part B this spring when I hit the big 65--but with no supplemental coverage--because I don't currently take any medications. I did so because of the threat to paying more for Part B later if you delayed enrollment.

For the OP though it sounds as though suspending and resuming (assuming that he will go back to the 'B' coverage in the future) seems to avoid any penalty.

[jlwdm]

Some confusing statements above. General medical is Part B. Drug coverage is part D. Both have penalties if you do not start coverage at 65 unless you have employee medical coverage. I don't spend much at all on actual drugs.

I got some bad advice when I went from being an employee to being an independent contractor. I was on Cobra for 18 months which is not an exception to the requirement to have Parts B + D. So I will pay penalties the rest of my life. Not that it is a huge amount.

Adding income penalties I pay over $645 per month for medicare and supplemental coverage and my wife pays a very similar amount.

I do get my first Social Security check in less than 10 days. There will be about $14k a year of taxes on the Social Security.

Jeff

[cd_davis]

For Paredown,, depending upon where you live, there are Medicare Advantage plans which fill in the payment gaps for expenses not paid by Part B and D.
In MA, I had the option of BC/BS plans with monthly premiums of $0 to $230 a month.
Regarding Part B, it can be cancelled if the group health plan is primary. You have to cancel with Social Security in person or during a phone interview.
And then submit the correct form in writing.
When you retire or leave the primary group plan you have up to 8 months to reapply for Part B, a Special Exemption Period.(Googlre search).

[paredown]

Some confusing statements above. General medical is Part B. Drug coverage is part D. Both have penalties if you do not start coverage at 65 unless you have employee medical coverage. I don't spend much at all on actual drugs.

I got some bad advice when I went from being an employee to being an independent contractor. I was on Cobra for 18 months which is not an exception to the requirement to have Parts B + D. So I will pay penalties the rest of my life. Not that it is a huge amount.

Adding income penalties I pay over $645 per month for medicare and supplemental coverage and my wife pays a very similar amount.

I do get my first Social Security check in less than 10 days. There will be about $14k a year of taxes on the Social Security.

Jeff
I had a pretty crappy experience with our local office--long story, but I never did get a real interview with a real human--someone took my paperwork across the counter, but I never got to speak to the person that processed my application and of course they screwed it up. So I can't say I really understand it.

Sorry I confused B and D--it was D that I did not enroll in, gambling that my current situation of not requiring medication will continue long enough that it will outweigh whatever penalty that will apply later, should I decide to enroll for Part D coverage during the open enrollment period.

[mbrtool]

I'm 70..still working...I initially had "D" but the income penalties were significant so I dropped "D" and was warned by "SS" that their would be a penalty if I renewed later on. I don't recall if I was dealing directly with "SS" or Blue Cross Blue Shield for "D". I just received my first "SS" check this month and I'm paying about $310 and my wife about $340 (with "D" through BCBS).

Ray

[jlwdm]

I don't use the Medicare Advantage Plans instead I use a traditional supplement plan to Part B through BCBS. I can go to any doctor (who accepts medicare) and I don't pay any deductibles. In my county the cost is $185 per month. I like not having to go through all of the bills. But I do not have supplemental Drug coverage.

Jeff

[cd_davis]

Good dialogue, everyone's situation is different and very personal.
Chris