Many seniors today are planning on working much later into their lives than previous generations have. Because of this many of the rules regarding Social Security and Medicare benefits are a bit confusing. For example, what happens with a senior who continues using their work’s high deductible health care plan past the age when enrollment into Medicare is required?

Part D Insurance

One place where this can become an issue is under Medicare part D. The government requires that health insurance have adequate coverage for prescription medications; the part that Medicare Part D covers. If there is not enough coverage under your current health insurance plan to pay at least as much as Medicare Part D would cover then you will have to pay a penalty when you eventually do enroll in Medicare Part D.

Penalties for High Deductible Health Insurance

This can come into play quickly if you are covered by a high deductible health plan. Most high deductible plans offer little coverage initially for prescription drugs. This means that if you are past Medicare enrollment age and continue using your high deductible plan for your drug coverage you will be forced to pay a penalty of around 1% of the national average Part D premium per month that you could have enrolled but did not.

Remember that choosing to enroll in Medicare can also affect other benefits like contributions to an HAS plan.

If you need legal assistance with Medicare Part D or other benefits contact Stano Law Group today.