I received a call from an individual who was turning 65. Because she is receiving social security benefits, she was automatically sent her Medicare Part A and Part B card. However, because of the couple’s higher adjusted gross income on their tax return (note: 2 year lookback), the premium for Part B will have an IRMA (surcharge) on top of the Part B base premium.
As a result, she has decided to remain on her spouse’s company (over 20 employees) health insurance and informed Social Security that at this time she will only need Part A coverage. (*She will first need to ensure that the drug plan under her husband’s employer plan has language in it confirming that the employer drug coverage is creditable/comparable to a Medicare drug benefit, otherwise she will incur a penalty on her Medicare drug coverage when she leaves the employer plan). She will be sent a new Medicare card by Social Security showing only Part A.
When she decides to leave her husband’s employer plan, she will be entitled to a special election period onto Part B. There are 2 forms that will need to be completed. One form is completed by the person requesting a special election onto Part B; it is submitted with a 2nd form that the employer completes (in this case, her husband’s employer) confirming loss of the employer coverage.