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Aged Working
Benefits & Compensation
Aged Working
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
In reading the information on Medicare working aged rules, they all seem to pertain to those working for companies of 20 or more -- ours has less than 20. Does anyone know if these same rules pertain
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Aged Working
posted at 11/29/2010 8:37 AM EST
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Posts: 34
First: 8/2/2000 Last: 6/22/2011 |
In reading the information on Medicare working aged rules, they all seem to pertain to those working for companies of 20 or more -- ours has less than 20. Does anyone know if these same rules pertain to small companies? The two employees mentioned are eligible to participate in the company group health plan and they are Managing Directors rather than Board Directors. We do not offer health insurance to members of our Board unless they are also full employees. |
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Aged Working
posted at 11/29/2010 9:34 AM EST
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
If they are eligible under your SDP, I don't see how you can remove these two directors until your insurance comes up for renewal, at which time you can redefine who is eligible for the health insurance plan and who is not (full time employees would be a good starting point). |
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Aged Working
posted at 12/1/2010 7:31 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
The 20 person limit is the switch on who pays primary if the person has BOTH medicare and employer coverage. In smaller firms, it is to the employer's advantage because they have to pay a much lower percent of the claims (what Medicare doens't pay).
But you still can't kick these old guys out....they would have three choices: (1) stay in the current employer plan with no medicare coverage (2) be in the employer plan with medicare coverage or (3) just be on medicare coverage. What you can't do is give them money to opt for #3. Or that is at least my understanding. It is possible that a person could be on Part A (the free part) under Medicare without being on B or D or having a supplemental plan. Then Part A would be primary for what it covers and the employer plan would pick up what it does not (up to that plan's limits). Hope this makes sense. I had to deal with this about 4 years ago and I got lucky because our benefits insurance broker had just gone through this with her mom....and had done a lot of research. |
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