Once you turn 65, you’ve got a decision to make – either keep your Health Insurance Marketplace policy or switch over to Medicare. This can be a difficult choice to make, but here you will be able to make that choice with more clarity.
Health Insurance Marketplace and Medicare
Your Health Insurance Marketplace plan will not have the same effectiveness when you’ve got Medicare to go along with it. That is not to say you can’t have both. When you have Marketplace insurance by itself, your Marketplace plan will help you pay premiums and other related costs. But when you join Medicare and it’s no longer your sole source of insurance, you’re going to have to pay full price for your Marketplace insurance.
If You Want to Join Medicare, Act Quickly
It’s common for people to wait to sign up for Medicare because they already have health insurance. And in some cases, a person can delay joining Medicare until he or she no longer has coverage such as that from an employer’s group health plan. This does not hold true for Health Insurance Marketplace plans.
If you wait to enroll in Medicare when you have a Health Insurance Marketplace plan, you will have to pay late enrollment penalties. That’s why it’s a good idea to enroll in Medicare as soon as you can.
Why Switching is Encouraged
Switching is encouraged because there are no other benefits to you if you have Medicare and a Health Insurance Marketplace policy at the same time. You pay for the Marketplace insurance in full, with no additional help with paying its premiums. The tax benefits disappear. In fact, if your Marketplace plan somehow pays for its premium, then you will have to pay that back in taxes. The cost-sharing benefits from Marketplace insurance end the moment your Medicare Part A coverage goes into effect.
The one exception is if you have a spouse or dependents who are ineligible for Medicare but want to keep their Marketplace plan. You have the power to cancel coverage for yourself but the others who were covered under the Marketplace insurance can still keep it.
Wait until you know for sure when your Medicare plan benefits will begin. While you don’t want to cancel your Marketplace plan when it’s too late, you don’t want to cancel it too soon, either. Terminating your policy too soon will leave you without health insurance, which is a financially dangerous place to be.
Any questions?
When you’re ready to make the jump, we’re here to guide you. Switching insurance plans can be tough, but we make Medicare easy. At Cornerstone Senior Advisors, we understand your concerns and we’re happy to answer any questions you may have. Call us today at 316-260-3331 and get a free quote.