Can You Start And Stop Medicare Part B

How To Drop Part A & Part B

Generally, you can only drop Part A if you have to pay a premium for it, also called Premium-Part A. You can choose to drop Part B .

There are some risks to dropping coverage:

• Your costs for health care: You may have to pay all of the costs for services that Medicare covers, like hospital stays, doctors services, medical supplies, and preventive services.
• Gap in coverage: If you change your mind and want to sign up again later, you may have to wait until the next General Enrollment Period to sign up. Your coverage wont start until July 1.
• Late enrollment penalty: If you dont qualify for a Special Enrollment Period to get Medicare later, youll have to pay a monthly late enrollment penalty for as long as you have Part B coverage. The penalty goes up the longer you go without Part B coverage. If you have to pay a penalty for Part A, youll pay it for twice as long as you go without Part A coverage.

Get help with costs

Medicare Part B Financial Assistance

Because Medicare Part B requires a monthly payment for its services, some people may find it difficult to pay for the monthly costs associated with this portion of Medicare. Those with limited incomes, in particular, may wonder if there are cost assistance programs in place to help mitigate the financial burden.

In fact, there are a few ways that you can reduce your monthly premiums, or at least make your healthcare more affordable using different programs. One such way is to enroll in a Medicare Savings Program. Run by individual states in conjunction with Medicare, Medicare Savings Plans help you pay for medical costs associated with deductibles, coinsurance and copayments, in some cases. There are four Medicare Savings Programs available, but only three of them relate to Medicare Part B. They are:

The Qualified Medicare Beneficiary Program

• The Qualifying Individual Program
• The Specified Low-Income Medicare Beneficiary Program

Each program has its own eligibility requirements. For example, members of the QI Program must apply every year for assistance. Acceptance is based on a first-come, first-served basis, with priority given to past recipients. You also wont qualify for the QI Program if you receive Medicaid benefits. If you think that you qualify for one of these programs or need financial assistance, then you should contact the Medicaid program in your state to find out more information.

How Medicare Advantage Can Save You Money On Your Part B Premiums

If you don’t qualify for the above programs, you still have options. Consider a Medicare Advantage plan that offers a rebate on your Part B premium. Here’s how that works:

A Medicare Advantage plan provides the same or better coverage than Part A and Part B . To receive this coverage, most enrollees pay a premium for their Medicare Advantage plan in addition to the cost of Part B.

But in some areas, typically large cities, Medicare Advantage providers offer $0 plans to better compete with other insurance companies. A few go even further and offer enrollees a rebate on their Part B premiums. If you enroll in one of these plans, you could pay a lower monthly Part B premiumand have more benefits, such as prescription drug, dental, vision, and hearing coverage.

These plans aren’t available in all areas, but even the average Medicare Advantage plan could help save you money. With most plans, you won’t have to pay an extra premium for prescription drug coverage or dental insurance, for example, which could free up some cash to cover the Part B premium.

To find out if a Medicare Advantage plan could save you money, give us a call.

Recommended Reading: Is Trump Trying To Get Rid Of Medicare

When Your Coverage Starts

The date your coverage starts depends on which month you sign up during your Initial Enrollment Period. Coverage always starts on the first of the month.

If you qualify for Premium-free Part A: Your Part A coverage starts the month you turn 65.

Part B : Coverage starts based on the month you sign up:

Dropping Medicare For Employer Health Coverage May Trip You Up

• If you are going back to work and your employer’s health-care plan qualifies as acceptable primary coverage, you are permitted to drop Medicare and re-enroll down the road.
• Just because you can, it doesn’t mean you should.

For some retirees who are on Medicare, the workforce ends up beckoning them back and one result can be employer-sponsored health insurance.

While that coverage could mean you are able to drop parts of Medicare and pick them back up again down the road without paying penalties, the move might come with snags.

“The process is straightforward, but there are a few consequences people should be aware of,” said Medicare expert Patricia Barry, author of “Medicare for Dummies.”

While the current number of retirees who re-enter the workforce is hard to come by, roughly 26.8% of people age 65 through 74 are in the labor market, according to the latest available data from the Bureau of Labor Statistics. That’s projected to reach 30.2% by 2026. For the 75-and-older crowd, the share is 8.4% and expected to grow to 10.8% by 2026.

Most people sign up for Medicare when first eligible at age 65, either because they no longer are working or don’t have qualifying coverage through a job. Roughly 52.2 million Americans age 65 or older are on Medicare. Another 8 million or so beneficiaries are younger people with disabilities.

More from Personal Finance:Why women are less prepared for retirement than men

Also Check: How Much Does Medicare Pay For Inpatient Psychiatric Care

Will I Be Automatically Enrolled In Medicare Part A

Yes. If you are receiving benefits, the Social Security Administration will automatically sign you up at age 65 for parts A and B of Medicare. … Social Security will send you sign-up instructions at the beginning of your initial enrollment period, three months before the month of your 65th birthday.

Canceling Part B Because You Got A Job With Insurance

If you have had Part B for a while but no longer need it because youve rejoined the workforce with access to employer-sponsored health insurance, congratulations! But before you drop Part B, find out if your jobs coverage is primary or secondary to Medicare.

A primary payer health plan pays before Medicare. That means your employer-provided health plan will cover its share of your health care costs first, and if theres anything left over that Medicare covers, Medicare will pay what remains.

Conversely, a secondary payer health plan covers only costs left over after Medicare covers its share.

If your health plan at work is a primary payer, thats great. Feel free to drop your Part B coverage if you wish. The Part B premiums might not be worth any additional coverage you receive. But if you have secondary-payer insurance at work, its usually better to keep Part B, or you could get stuck paying Medicares share of your health care expenses.

Talk to your human resources department at work to find out if your employer-sponsored plan is primary or secondary to Medicare. Generally, businesses with 20 or fewer employees have secondary payer plans, while larger companies have primary payer plans.

Recommended Reading: What Does Bcbs Medicare Supplement Cover

Ways To Drop Coverage

To drop Part B , you usually need to send your request in writing and include your signature.

You pay premiums for any months you have Part B coverage. Your coverage will end the first day of the month after Social Security gets your request.

If youre dropping Part B and keeping Part A, well send you a new Medicare card showing you have only Part A coverage. Write down your Medicare Number in case you need to go to the hospital or get Part A-covered services until your new card arrives.

What do you want to do next?

What Happens To Medigap When I Return To Work

The rules are tricky. You must have Medicare Part A and Part B to have a Medicare supplement insurance policy, better known as Medigap. So if you disenroll from Part B when you return to work, youll have to drop your Medigap policy too.

But you may have a difficult time getting Medigap coverage again when you reenroll in Medicare after you leave your job. When youre 65 or older, you have a federal right to buy any Medigap policy in your area, regardless of preexisting conditions, within six months of enrolling in Part B. Yet that is a one-time guarantee.

If you drop Part B because you get a new job and reenroll in Part B later, you generally dont get a new Medigap guaranteed issue period, and insurers could deny coverage or charge more if you have preexisting conditions. Some states have guaranteed issue rules different from the federal regulations.

Other rules at small businesses. If you have health insurance from your job that is secondary to Medicare, like many people who go to work for a business with fewer than 20 employees, you may want to drop your Medigap coverage even though you arent dropping Medicare. Your employers coverage will fill in the gaps.

After you leave employment and lose that coverage, you will have 63 days to get a Medigap policy with guaranteed issue rights. But this can happen only if your employers coverage is secondary to Medicare.

Also Check: Can You See Any Doctor With Medicare

Is It Mandatory To Have Medicare Part B

Part B is optional. Part B helps pay for covered medical services and items when they are medically necessary. Part B also covers some preventive services like exams, lab tests, and screening shots to help prevent, find, or manage a medical problem. Cost: If you have Part B, you pay a Part B premium each month.

Can I Stop Medicare If My New Job Offers Health Insurance

Before deciding whether or not to disenroll from Medicare Part B, first find out whether Medicare is primary or secondary to your employer coverage. That will determine whether dropping Part B could leave you with coverage gaps.

At a large employer. If you work for a company with 20 or more employees, the employers coverage is primary and Medicare is secondary. You can disenroll from Medicare Part B and use your employers coverage instead.

You generally cant drop Part A unless you have to pay a premium for it. For people who have paid Medicare taxes for 40 quarters 10 years of work that dont have to be consecutive Part A is free anyway.

But to avoid a permanent Part B late-enrollment penalty, when you leave, lose or retire from your new job, you must then reenroll in Medicare Part B while youre still on the job or during a special enrollment period that lasts for eight months after your job-based private health insurance stops.

At a small business. The coverage rules are different for smaller companies. For most places with fewer than 20 employees, Medicare becomes your primary coverage at age 65 and the employer plan provides secondary coverage.

This means Medicare settles your medical bills first, and your private group plan pays only for services it covers that Medicare doesnt. If you drop Part B in this situation, you will be left with big coverage gaps.

Recommended Reading: Does Medicare Cover Lasik Eye Surgery

Medicare Part B Start Date

When do Medicare Part A and Part B start?

Original Medicare includes Part A and Part B . Your Medicare Part A and Medicare Part B start date is based on when you sign up and your sign-up period. More on this below.

Your first chance to sign up

Your Medicare Initial Enrollment Period lasts for seven months, starting three months before your 65th birthday month and ends three months after your 65th birthday month.

If you or a spouse has health insurance through work and will continue to work, you can delay enrolling in Medicare if you prefer your group health plan over Medicare, with no penalties.

Medicare Part A and Medicare Part B start date

Your coverage starts depending on which month you sign up during your Initial Enrollment Period. Coverage always begins on the first of the month.

If you qualify for premium-free Part A : Your Part A coverage starts the month you turn 65.

Medicare Part B start date: Coverage starts based on the month you sign up:

Signing up for Premium-free Medicare Part A later

Your Part A coverage starts six months back from when you sign up or apply for Social Security benefits . Coverage cant start earlier than the month you turn 65. You can sign up for Part A any time after you turn 65.

After your Initial Enrollment Period ends, you can only sign up for Part B during one of the other enrollment periods.

Special Situations

Your First Chance To Sign Up

Generally, when you turn 65. This is called your Initial Enrollment Period. It lasts for 7 months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65.

Avoid the penaltyIf you miss your 7-month Initial Enrollment Period, you may have to wait to sign up and pay a monthly late enrollment penalty for as long as you have Part B coverage. The penalty goes up the longer you wait. You may also have to pay a penalty if you have to pay a Part A premium, also called Premium-Part A.

Don’t Miss: How Do I Get My Medicare Premium Reduced

Canceling Part B Because You Were Automatically Enrolled

Some people are automatically enrolled in Part B if they’re receiving Social Security or Railroad Retirement Board benefits when they become eligible for Medicare. If that’s you, there’s a good chance your Medicare card will arrive in the mail even if you haven’t applied for benefits.

If you dont want this coverage and dont opt out, youll be responsible for Part B premiums, which may come straight out of your Social Security or RRB checks. But beware: if you opt out of Part B without having creditable coveragethat is, employer-sponsored health insurance from your current job thats as good or better than Medicareyou could face late-enrollment penalties down the line.

How To Cancel Medicare Part B

The Part B cancellation process begins with downloading and printing Form CMS 1763, but dont fill it out yet. Youll need to complete the form during an interview with a representative of the Social Security Administration by phone or in person.

Due to the COVID-19 pandemic, all Social Security Administration offices are currently closed. The SSA is still answering phone calls, and you can access many services on its website. See the latest COVID-19 updates.

You can schedule an in-person or over-the-phone interview by contacting the SSA. If you prefer an in-person interview, use the Social Security Office Locator to find your nearest location. During your interview, fill out Form CMS 1763 as directed by the representative. If youve already received your Medicare card, youll need to return it during your in-person interview or mail it back after your phone interview.

What happens next depends on why youre canceling your Part B coverage.

You May Like: Does Medicare Cover Dna Testing

Medicare Part B Special Circumstances

Some people dont need Medicare Part B coverage right away, because they have medical insurance through their employers or meet other special conditions. And some people choose not to enroll in Medicare Part B, because they dont want to pay for medical coverage they feel they dont need. There are a variety of reasons why you might hesitate to pay for medical insurance. Likewise, you may be concerned about how the new healthcare laws affect Medicare Part B coverage. In this section, well discuss a few reasons to hold off on Medicare Part B, as well as how Obamacare affects Medicare Part B coverage.

For starters, people who are still working when they qualify for Medicare may not need to get Part B coverage right away. If you have insurance through your employer, then you most likely already have medical coverage. However, you should still meet with your plan administrator to find out how your current insurance works with Medicare, because some policies change once youre eligible for Medicare. Other special situations include the following:

Once you stop working or lose your work-based coverage, you have an eight-month period to enroll in Medicare Part B. If you dont enroll during this time, you may have to pay the late enrollment penalty every month that you have Part B coverage sometimes indefinitely. Also, you may face a serious coverage gap if you wait to enroll.

Can You Stop And Restart Medicare

If you’re going back to work and can get employer health coverage that is considered acceptable as primary coverage, you are allowed to drop Medicare and re-enroll again without penalties. If you drop Medicare and don’t have creditable employer coverage, you’ll face penalties when getting Medicare back.

Also Check: Is Silver Sneakers Part Of Medicare