Medicare basics for helping employees transition to retirement
Early, on-time or later than expected — your employees are on their own retirement timeline. But, that doesn’t mean they aren’t thinking about the next exciting chapter of their life.
More than 11 million Medicare-eligible Americans are still working today. And it’s not just because they love working. It’s a number of factors, like living longer, the shift from pensions to 401(k)s and wage stagnation over the past 20 years.
The picture-perfect scenario of your employees retiring early or on time at 65 may no longer be the reality. So, how can you help set up your employees for a smooth transition into retirement?
Helping employees navigate Medicare
Retirement is a big deal for you and your employees. That’s why we’ve put together this resource to help you learn about Medicare, and in turn help your employees successfully plan for — or transition into — retirement.
Connect with a Wellmark Medicare Business Consultant
Get your Medicare questions answered by an expert. Our consultants will assist you in understanding the basics of Medicare, provide educational resources and offer personalized support to ensure a smooth transition to Medicare for your employees.
Let’s cover the high-level basics of Medicare
As your company’s human resources or benefits administrator, you have a lot on your plate and knowing the ins and outs of Medicare may not be at the top of your to-do list. The good news is that you don’t have to be a Medicare expert to help your employees — that’s what we’re here for! Let’s walk through a few Medicare basics and what your employees may or may not know about Medicare.
What is Medicare?
It’s a health insurance program through the federal government for people 65 or older, and those with certain disabilities.
What are the different parts of Medicare?
There are four total parts of Medicare. When your employees first enroll, they will enroll in Medicare Parts A and B, also called Original Medicare. These parts are managed through the federal government:
- Part A covers hospital costs and is offered at NO COST to nearly anyone eligible.
- Part B covers medical care and is available at a monthly premium to most people who are eligible.
The other two parts of Medicare are managed by private health insurance companies. These include:
- Part C, also called Medicare Advantage combines the coverage included in Medicare Parts A and B, and often Part D, into one plan.
- Part D helps pay for prescription drugs. These plans cover generic and brand name drugs. Employees must have Part D coverage to avoid penalties.
Medicare Supplement (also referred to as Medigap) is another type of plan offered by private insurance companies to help pay for costs not covered by Original Medicare like deductibles, copays and coinsurance.
Medicare misconceptions your employees may have
Research shows that employees nearing retirement age have varying levels of Medicare knowledge. Here are three major misconceptions most pre-retirees have about Medicare, and information to help address them with your employees.
- Misconception 1: Medicare Part B is free. Many people are surprised to learn that Part B isn’t free — it comes with a monthly premium that varies by income.
- Misconception 2: You can enroll in Medicare at any time. There are certain enrollment periods for Medicare. If your employees don’t enroll when they’re first eligible, they could face a lifetime late enrollment penalty.To avoid this, it’s important that they enroll as soon as they become eligible.
- Misconception 3: Original Medicare covers everything. Original Medicare only covers 80 percent of the cost for Medicare-approved services, which is why most enrollees choose to purchase additional coverage, like a Medicare Supplement plan from Wellmark.
Get Medicare resources
Wellmark’s Medicare Business Consultants make it easy for you to be a resource to your employees. They’ll provide you with personalized guidance and the ready-to-share resources you need to help employees find the best solution for them. Reach out to a Wellmark Medicare Business Consultant today.
If you're looking for more Medicare insights or education for your employees, contact your authorized Wellmark representative, or fill out the form to contact a Wellmark Medicare Business Consultant.
If you are an employer group outside Iowa or South Dakota, go to BCBS.com to find a Blue Cross and Blue Shield plan near you.