Working after Age 65
At age 65, most people become eligible for Medicare Part A, which covers hospitalization, and Part B, which covers doctor visits and other medical services. Part A is provided at no additional cost to you, but Part B requires you to pay a monthly premium of around $130 (or higher, depending on your income). As long as you continue to work, if you are enrolled in the SU medical plan, it will be your primary coverage for you and your covered dependents. This means you (or your spouse) can delay enrolling in Medicare Part B at age 65. Prescription drug coverage will also continue for you and your dependents in the SU medical plan for as long as you continue to be actively employed.
Retired on or after Age 65
When you retire, the SU retiree medical plan becomes secondary to Medicare. You are required to enroll in Medicare Parts A and B immediately and provide a copy of your Medicare card to Lifetime Benefit Solutions. Your provider will first submit your claims to Medicare, and any unpaid balance will be forwarded to Excellus BCBS automatically. As a participant, this will not change the amount you have to pay for cost-sharing (co-pays, deductibles, coinsurance, etc.). Excellus BCBS will then apply the University’s plan benefit after reducing for Medicare coverage.
Even if you do not enroll in Parts A and B immediately, the SU Retiree Medical Plan will reduce the benefit available by the amount Medicare would have paid, which will increase your costs for any services that Medicare would have covered. In addition, you may pay increased Part B premiums if you fail to enroll within three months of your retirement date. Finally, remember that prescription drug coverage is not available in the retiree drug plan once you reach age 65, so you may also wish to purchase a Medicare Part D plan. Review more information about health coverage for retirees.
*It is important to know that Medicare does not allow individuals to enroll in partial month coverage. Therefore, you are strongly encouraged to be enrolled in Medicare Parts A, B and D as of the first day of the month in which you retire, or become eligible for Medicare if later.*
Medicare-Eligible due to Disability
If you become Medicare-eligible before age 65 due to disability and continue to work, the SU medical plan will remain your primary coverage and Medicare will be secondary. You may delay your enrollment in Medicare Part B only until you stop working. Once you stop working, Medicare will become your primary coverage and your SU medical plan coverage (if you are enrolled) will be secondary. If you are enrolled in the University’s coverage, you must be enrolled in Medicare Parts A and B as of the first day of the month in which you are no longer working.
If you become Medicare-eligible due to a disability before age 65 when you are already retired, review the information about the prescription drug coverage options you have through the Retirement Disability Coverage.
Effect on Life Insurance
Your basic life insurance coverage will reduce to 65% of the benefit ($32,500 for faculty, $6,500 for staff) upon reaching age 65 if you still work. Upon retirement at any age, the benefit reduces to $3,000.