Re: Medicare Insurance Waiting Period

[Guest guest]

Hi Lynna,

I don't know for sure why there is a 24 month waiting period, but to answer your

question about what some people do...

It is common for employers to have a 6-month short term disability period,

during which employees who out for illness or disability are still viewed as

'active' employees and they stay on the 'active' group health plan during this

time. After 6 months, if the employee hasn't returned to work, they are then

terminated from employment and offered COBRA for 18-months.  Some self-insured

employer groups even allow the disabled employees to stay on the active plan for

the full-time 24 month Medicare waiting period, then offer COBRA when the

Medicare starts.  That's what my former employer did, so I was very fortunate

that way. 

Of course, if someone already had an individual plan, they don't lose it when

they become disabled.  However, the premium affordability may certainly be an

issue.

There are also Medicaid programs that may help.  These programs vary by State

and are based on income/asset qualifications.  However, I'm sure there are still

many who are caught without coverage during this time and just have to wait it

out, at least until we have a national healthcare solution to this issue.

As a sidenote to this, there is a special COBRA provision for dependents which

allows them to stay on COBRA longer than 18 months when the employee becomes

disabled.  My husband was able to stay on COBRA for 35 months due to this

provision.  The COBRA administrator had never heard of this provision, so I had

to show them.  I did this at the beginning of the COBRA period, so the end date

was set correctly from the beginning.

[Guest guest]

In California there is also the GHPP.

http://www.dhcs.ca.gov/services/ghpp/Pages/default.aspx

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[Guest guest]

Hi Lynna -

I retired early from my company (based on tenture and age) but I still have to

pay $785 per month for insurance for my wife and myself with Kaiser. It's

killing us financially. My company wants to know when any retirees receive

Medicare??? I qualify (24 mos.) this August. I'm curious what will happen to

my rates.

Take care.

Clyde

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[Guest guest]

Hi Clyde,

Hope you don't mind if I jump in on this one.

It sounds like you retired early (pre-65) with your

employer, then later applied for disability insurance with Social Security,

correct?  If so, then I would recommend you contact your former employer and

explain that you will be getting Medicare soon and ask what the rate currently

is for retiree with Medicare A & B with spouse under age 65.  This rate may

change if you have open

enrollment before August, but at least it will give you an idea of cost, for

planning purposes.

Intuitively, it might seem like your rates would go down

substantially when you get Medicare, but that’s typically not the case with an

employer plan because early retirees are a younger bunch compared with those on

Medicare who are older and/or disabled. 

Every insurance company treats this differently, with a wide range of pricing

strategies.  Some even pricing 65+ higher than early retirees, some pricing

them lower. Your former employer really is the best source for an answer as to

how your situation will be affected.

Of course, you have no obligation to stay on your employers

retiree plan.  Many times going on an individual Medicare Supplement or

Advantage plan is less expensive than a retiree group plan.  However, if you

discontinue your retiree plan, then your wife will likely lose her coverage too.

If you are interested in looking at other options, I would recommend speaking

with a licensed insurance agent in your area who

specializes in individual plans for seniors.  Even though you're not a senior

yet, agents who specialize in senior plans typically also also knowledgeable

about plans for SSDI Medicare recipients.

 

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[Guest guest]

Hi -

You were right with all assumptions. I qualified for early retirement at 53. I

got another job as a consultant one month after retiring and worked until 2008

when I was diagnosed with CMT. My balance, fingers and feet suddenly lost their

sensation.

Clyde,

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[Guest guest]

Hello Clyde,

I was awarded Social Security benefits last month. It was quite an ordeal, but

it's over!

I think the award letter set my Medicare date. They've sent a card and

everything.

Jim

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