Medicare Options for Iowans Facing Job Loss, Lay-Off

March 11, 2009 
 
Over the past five to ten years, more and more Iowans have chosen to continue employment beyond age 65. Many of them have delayed enrollment in Medicare and have kept their employer health insurance coverage.

“Now, as some of these workers face lay-offs or losing their job, questions come up about Medicare and Medicare supplement insurance as a way to cover the loss of employer coverage,” said Kris Gross from the State of Iowa’s Senior Health Insurance Information Program (SHIIP).

In Cedar Rapids, St. Luke’s Hospital has a team of SHIIP counselors who can help Medicare eligible individuals decide what type of coverage is best for their situation.

“For example, Cryovac retirees do not know the status of their insurance since the plant will be closing later this year,” says John McDonough, a SHIIP counselor at St. Luke’s. “We can work on alternative insurance plans for these individuals.”

Anyone who delayed enrolling in Medicare Part B because his or her employer, or a spouse’s employer, continued to provide primary health insurance coverage has the opportunity for a Part B special enrollment period. This special enrollment period is available any time while you’re working or eight months following the last month you had coverage while employed.

“The first six months you are 65 or older and have Medicare Part B, you are eligible for a Medicare supplement insurance open enrollment,” said McDonough. “This means you can apply for any Medicare supplement policy sold in Iowa and the company must accept you for coverage.”

“They cannot turn you down, add a rider or charge you higher premiums because of existing or prior health conditions,” said McDonough. “If you’re in the open enrollment period and apply for a supplement within 63 days of when your employer coverage ends, the waiting period for pre-existing health conditions will also be waived. This is a one-time opportunity.”

Prescription drug coverage is also often provided by employer plans. “If you are losing your employer-provided drug coverage and it was at least as good as Medicare’s coverage, you get a special enrollment period to choose a Medicare Part D drug plan,” said McDonough. “You have two months from the time you lose employer coverage or are notified of the loss – whichever is later.”

Individuals in need of more information about Medicare health insurance options when faced with a lay-off or job loss, should call St. Luke’s SHIIP Office at 319/369-7475.