Should I Keep Retiree Health Coverage With Medicare?
Usually yes — if your former employer offers retiree coverage at a reasonable cost, it supplements Medicare well. But compare its value to Medigap or Medicare Advantage, because retiree plans can change or be discontinued by the employer.
When This Applies
- Your former employer offers retiree health benefits
- You have retiree coverage and are enrolling in Medicare
- You want to compare retiree plan costs to Medigap or Advantage
- Your retiree plan requires Part B enrollment
Frequently Asked Questions
- Is retiree coverage creditable for Part D?
- Many retiree drug plans are creditable, but check the annual notice from your former employer to confirm.
- Can I get retiree coverage back if I drop it?
- Usually not. Most employers don't allow re-enrollment once you drop retiree benefits.
- Does retiree coverage count for delaying Part B?
- No. Retiree coverage is not active employer coverage and does not protect you from the Part B penalty.