MedicareIf You Continue to Work Past 65
For those who continue working beyond the age of 65, whether solo CPAs or in firms of fewer than 20 employees, the Group Insurance Trust strongly recommends subscribing to Medicare Parts B and D and purchasing a Medigap policy. Since Medicare will be your primary payer of claims, you will receive few if any benefits from retaining your group coverage.

However, if you are employed at a firm with more than 20 employees, the opposite generally holds true. Since your group plan qualifies as the primary payer, and thus is billed before Medicare, you should retain your group coverage. In this circumstance, you can also delay purchasing any optional Medicare and Medigap plans until you do finally retire. If your spouse has been covered on your group plan and you continue working, then for solo practitioners with ProtectPlus, the choice is simple.

As long as you continue working, the plan allows your spouse to stay enrolled and be billed at the rate that applies to his or her own age. If you are with another carrier, your spouse may have to seek private coverage on the open market or take a HIPAA plan.

If you are employed at a firm with fewer than 20 employees and not insured by ProtectPlus, your spouse may qualify for an extension of health coverage under CalCOBRA, while if you are employed at a firm with 20 or more employees and covered by a plan other than ProtectPlus, he or she can get an extension through COBRA. ProtectPlus participants should refer to the chart on page three for continuation options.

If You Are Disabled
If you are disabled and qualify for Social Security Disability Income (SSDI), you may also be eligible for Medicare benefits. Unfortunately, the Social Security Administration doesn’t begin paying SSDI benefits until five months after your application is approved. You must then wait another 24 months before Medicare benefits begin, and these benefits may not cover some of the services you need.

In addition to replacing your lost earnings, this is another reason why long-term disability insurance is so highly recommended by financial planners and insurance professionals. If you are disabled and your spouse was previously covered under your workplace group plan, he or she may qualify for COBRA or CalCOBRA depending on the size of the firm, or might need to find a private carrier.

A HIPAA policy may be available as a last resort. The difficulty and discomfort in contemplating
these scenarios may explain why so many people fail to do adequate planning. On the other hand, a quick overview of the complexities and consequences involved can act as a spur.