How does Medicare Part D work with other insurance companies? Pt 2
Here are some examples of other insurance benefits that may apply to Medicare beneficiaries:
How can Medicare Part D work with an employer or union policy?
An employer or union policy decides how to work with Medicare and whether to consolidate benefits with Medicare policy. Your union or employer must tell you if your current prescription drug insurance changes when you qualify for Medicare. This notice will also apply to your spouse if you enroll in your employer’s health policy and are eligible for Medicare.
Your employer can do the following:
Continue your current insurance
Offer alternative insurance through a specific Medicare Part D prescription drug policy or a Medicare Advantage Prescription Drug policy
Drop your coverage
It may be a good idea to ask yourunion or employer if you and/or your family members will be removed from thepolicy if you join a Medicare policy that offers prescription drug services. Plan for 2020 and get a supplement plan at https://www.medisupps.com/medicare-supplement-plans-2020/
If you like the employer or union policy and/or your family is insured by your policy, you may want to keep it if the policy allows it. If so, see your policy’s “creditable insurance notice” (which should be sent each fall in the year) to make sure you have solvent medications. If the policy does not provide acceptable insurance for prescription drugs, you may want to join a Part D prescription drug policy to avoid late entry of Part D drugs.
How Medicare Part D could work with COBRA
If you lose your union or employer policy insurance because your employment ends, you may be eligible to receive benefits under the Ombibus Consolidated Budgeting Conciliation Act (COBRA). Under COBRA, you and insured family members can continue insurance under the employer or union policy for a specific period of time, usually the total insurance premium previously shared or paid in full by the employer and an administration charge.
If the COBRA policy does not provide adequate insurance for prescription drugs, registering in a Medicare Part D prescription drug policy may be beneficial to avoid potential fines for later registration. You may want to check with your state health insurance program (SHIP) to understand your options.
How can Medicare Part D work with individual insurance policies?
If you have an individual insurance policy (which is not Medicare) that insures prescription drug insurance, your insurer must inform you if your current insurance is “creditable” or not. If this is not attributable, you may want to enroll in a Medicare prescription drug policy as soon as you qualify, so you do not have to wait for a Part D late enrollment penalty. You may be able to utilize your personal insurance to supplement Medicare insurance. You can check the conditions in your policy to see if the benefits are coordinated.
How can Medicare Part D work with the Federal Employees Health Benefits Program (FEHBP)?
If you are an active or retired federal employee, you usually do not need to enroll in a Medicare prescription drug policy. The benefits offered by FEHBP are generally considered acceptable prescription drug insurance.