Picking Between Employer Group Health Plan and Medicare

medicare group plan

Whether you’re currently working or recently retired, if you’re 65 or Medicare-eligible, and on an employer-sponsored Medicare group plan, you might want to rethink your options. Wading through the best choice for you when it comes to employer group health plan and medicare, so we here at MSHP created this guide. These plans may be great if you’ve been with your company a long time, but what if you’ve only been there a few years? 

Employer Group Health Plan and Medicare: Is your plan right for you?

We know switching plans can feel daunting. There may be a number of reasons you might want to stick with your current employer-sponsored coverage but you may simply be paying too much on your premium.

The 3 reasons to leave a Medicare group plan

We’re not suggesting you ditch your current plan without researching the most suitable option for you, but haven’t yet taken time to review your options, you could be in for a pleasant surprise. Here are three reasons to consider switching:

Reason #1: Lower premiums

Since retiree associations and employers often subsidize premiums for employees who’ve been with the company a long time, those who aren’t as vested end up picking up the tab. 

Many employer-sponsored plans really only benefit employees or retirees who’ve worked with the company for a long time—20 years or more. These ???-employees enjoy low premiums that are offset by the higher premiums paid by those who’ve only been at the job a few years. If this describes your situation, you may be paying higher premium rates than your more tenured colleagues.

Medicare can be complicated, and you may have opted for an employer plan because the process was easier. Of course, there’s nothing intrinsically wrong with this model—if you’re talking about 30 years ago. But lengthy terms of employment just aren’t the reality for most people these days. Transitioning between jobs is the norm, with the average baby boomer holding 12.3 different jobs throughout their working life. 

When you’ve only been at your job a few years, you’re likely to find a Medicare Advantage plan with a lower (or zero!) premium that offers similar coverage.

Reason #2: Customize your health care

If you’re currently receiving insurance through your employer, chances are you weren’t given many plan options. The average senior can choose from 33 different Advantage plans in 2021, so you may find a plan that may be a better fit. Again, many of these plans have zero or low premiums. If you’re in California, you have access to some of the nation’s top-rated Advantage!

Reason #3: No penalty for switching

You might be concerned about switching completely over to Medicare, because there are some restrictions on eligibility and limited enrollment periods. This apprehension is well founded in some cases, but not if you’re already part of an employer-sponsored plan. The good news is you can switch over to a Medicare plan that offers great coverage and lower premiums. There’s a permanent Special Enrollment Period (SEP) for those who have coverage through an employer. So there’s no reason to feel forced to stick with a plan that’s not working for you.

If you’re curious about making the leap to Medicare, contact MySeniorHealthPlan today to find out what Medicare Advantage plans are most suitable for you.

image credit: shutterstock/Diego Cervo