Forced Retirement!

[michla]

14 years in the same chair, but a coroporate takeover for the past 4 years of my full-time, regular employment furloughed me in April and just notified me of a permanent layoff today. I turned 66 in February this year, registering for Medicare Part A but with full health insurance provided by the employer, didn't see the need to pay for Medicare Part B until I officially retired, probably in a year or two more.

Grandma was "put out to pasture" today!

I've been reading that its ok to apply for Medicare Part B WITHOUT PENALTIES upon my official announcement of retirement to employer, but I wasn't ready to retire just yet. But now that my medical insurance will be terminated with insane Cobra options I can't afford I have to scramble sooner.

MY QUESTION IS THIS: if they terminated me (layoff) unexpectedly, can I still announce my retirement to avoid the Part B permanent penalty surcharges? Or did they beat me to the punch?

 

[MBSC]

The reason for losing the large employer coverage (retirement or layoff) is not relevant. What is important is that you contact Social Security, let them know you delayed Part B due to having large group coverage, and have lost that coverage.

They should send you form L-564. You have the employer complete the form and give it back to you. You return the form to your local SS office. The Part B penalty will be waived when SS receives the completed form.

SSA Form L-564: https://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/Downloads/CMS-L564E.pdf

The Special Enrollment Period (SEP) to avoid the Part B penalty is available when "employment ends". This includes both layoffs and retirements.

(Special Enrollment Periods)

Once your Initial Enrollment Period ends, you may have the chance to sign up for Medicare during a Special Enrollment Period (SEP). If you're covered under a Group health plan based on current employment, you have a SEP to sign up for Part A and/or Part B anytime as long as:

- You or your spouse (or family member if you're disabled) is working.
- You're covered by a group health plan through the employer or union based on that work.

You also have an 8-month SEP to sign up for Part A and/or Part B that starts at one of these times (whichever happens first):

- The month after the employment ends.
- The month after group health plan insurance based on current employment ends.

Usually, you don't pay a late enrollment penalty if you sign up during a SEP.

Source: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/part-a-part-b-sign-up-periods

Around September of last year, you should have received a "Notice of Creditable Coverage" from the group plan saying the plan will provide creditable coverage in 2020. You submit a copy of this notice and any prior notices when you apply for a Part D (drug) plan or Medicare Advantage plan with drug coverage to avoid the Part D late enrollment penalty. The group plan should be able to send another notice if you didn't keep them.

 

[michla]

They should send you form L-564. You have the employer complete the form and give it back to you. You return the form to your local SS office. The Part B penalty will be waived when SS receives the completed form.

SSA Form L-564: https://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/Downloads/CMS-L564E.pdf

The Special Enrollment Period (SEP) to avoid the Part B penalty is available when "employment ends". This includes both layoffs and retirements.

THANK YOU, you have been most helpful !! I forgot about this form and I will contact the SSA office today.