Many people who are turning 65 and still working have health insurance through their employer or a spouse’s employer. So, if that’s the case, do you even need to buy a Medicare Supplement (Medigap) plan right now?

Below, this Medicare Supplement provider in Portage, Indiana is going to explain how Medigap works if you are still working and already have employer health insurance.

Can you buy Medigap even if you still have employer insurance?

You can buy a Medigap policy even if you still have employer-sponsored coverage as long as you are enrolled in Original Medicare. But you must have both Medicare Part A and Medicare Part B active to buy Medigap.

Medigap supplements Original Medicare cost-sharing, and it specifically works alongside Part B benefits. You will not be able to enroll in Medigap yet if you only have Part A and you are delaying Part B because you are still covered by an employer plan.

This timing is crucial because your best opportunity to enroll in a Medigap plan is usually your Medigap Open Enrollment Period. You have the strongest protections during this period, including the ability to buy a Medigap plan without medical underwriting. If you enroll in Part B earlier than you really need it just to get Medigap, you could start that window too soon and waste it while you still have employer coverage.

The thing is that most people do not actually need Medigap while they are still working. That is because a good employer plan already covers a lot of the same costs that Medigap does. So, if your employer plan is strong, buying Medigap while you are still employed can feel like you are paying for duplicate coverage.

Before signing up, it is smart to speak with an experienced Medicare Supplement provider in Portage, Indiana. They can look at your exact situation and help you decide if Medigap makes sense now or if it is better to wait until you leave your employer plan and Part B becomes necessary.

How does Medicare work when you still have employer insurance?

One of the biggest Medicare misunderstandings is the idea that the second you turn 65, Medicare automatically becomes your main health insurance. But if you are still working or covered under a working spouse’s plan, Medicare may be secondary insurance. Your employer plan will pay first, and Medicare will pay second. This arrangement is called coordination of benefits.

Whether Medicare or the employer plan is primary depends on whether your coverage is based on active employment and on the employer’s size. The employer’s group health plan is generally the primary payer if your coverage comes from active employment and the company has 20 or more employees. But Medicare becomes primary if the employer has fewer than 20 employees.

Keep in mind that this rule applies to active employment coverage, which is when you or your spouse is currently working. Medicare usually becomes the primary payer regardless of employer size if you have retiree coverage or coverage that is not tied to current employment.

Medigap may not be very helpful while you are still working.

Medigap policies cover the remaining costs left behind by Original Medicare. But Medigap does not replace your employer plan, and it does not function like one. It is meant to supplement Medicare after Medicare pays. There may not be much leftover for Medigap to cover if your employer plan pays first and Medicare pays second.

A good Medicare Supplement provider in Portage, Indiana can help you confirm whether Medicare will be primary or secondary for you under Medicare’s coordination rules. They can also estimate what Medicare would pay if it’s secondary, and they can also explain whether adding Medigap would meaningfully reduce your out-of-pocket costs.

Looking for a Medicare Supplement provider in Portage, Indiana?

If you are not sure whether you should enroll in Medigap now or hold off until your employer insurance ends, do not wait to contact a trusted Medicare Supplement provider in Portage, Indiana. Our licensed agents at Senior Care Insurance Services (SCIS) can help you understand how to coordinate your Medicare and employer plans. We can also help you choose the best timing for your Medigap enrollment to ensure you don’t miss important enrollment protections in Indiana. Contact us today to schedule an appointment.