Medicare Coverage

kmc

We have an ee who will soon turn 65. In a discussion yesterday with this person they stated that once they turn 65 (they will continue to work, and are covered on our health insurance plan) they can drop the employer health insurance plan, pick up their own hospital and drug plan and have that premium deducted from their paycheck. This is so that the Medicare Part D coverage can be pre-taxed dollars. I informed them that they are receiving similar coverage because they are able to keep the current health insurance plan the company offers. That was when they said you have to offer me simialr benefits and the current plan is pre-taxed dollars. And the premiums being pre-taxed are a benefit.

I have searched several websites to see if there is anywhere that it states the employer would have to allow them to chose their own insurance and then the employer be responsible for payroll deductions and payment of their premium.

Am I missing something here?

joannie

I spoke with our Part D guru and she said there is no requirement for the employer to deduct for Merdicare coverage. If ee chooses Part D coverage, they are responsible for paying their own premiums, post tax.

kmc

Thanks! That was what I wanted to hear.

FunHRBanker

With our plan, Medicare cannot be primary if the employee continues to work enough hours to be eligible for the plan.

kmc

Our health coverage would continue to be primary as well.