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Medicare Part B snafu
Benefits & Compensation
Medicare Part B snafu
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
A dependent spouse of active EE (both covered by our active group health plan) signed up for Medicare Part B on the instructions of the health insurance carrier and transferred to
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Forums » Topic Forums » Benefits & Compensation » Medicare Part B snafu
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Medicare Part B snafu
posted at 12/19/2012 4:42 PM EST
on Workforce Management
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Posts: 1
First: 12/19/2012 Last: 12/19/2012 |
A dependent spouse of active EE (both covered by our active group health plan) signed up for Medicare Part B on the instructions of the health insurance carrier and transferred to our medicare retiree plan from the active plan. As employer we were told we had to transfer dependent spouse to medicare retiree plan. Several months later we learn transfer should not have taken place since dependent spouse has access to active spouse's health plan. There could be penalties from Medicare. We are trying to correct error with group health plan who is assisting; however, dependent spouse is resisting moving from the medicare retiree plan to active plan. How do we correct error if dependent spouse will not cooperate? Can we terminate dependent spouse from medicare retiree plan , transfer back to active plan even if the individual wants to stay with the medicare retiree plan? |
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Re: Medicare Part B snafu
posted at 12/21/2012 6:04 PM EST
on Workforce Management
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Posts: 174
First: 9/20/2011 Last: 2/11/2013 |
In Response to Medicare Part B snafu: A dependent spouse of active EE (both covered by our active group health plan) signed up for Medicare Part B on the instructions of the health insurance carrier and transferred to our medicare retiree plan from the active plan. As employer we were told we had to transfer dependent spouse to medicare retiree plan. Several months later we learn transfer should not have taken place since dependent spouse has access to active spouse's health plan. There could be penalties from Medicare. We are trying to correct error with group health plan who is assisting; however, dependent spouse is resisting moving from the medicare retiree plan to active plan. How do we correct error if dependent spouse will not cooperate? Can we terminate dependent spouse from medicare retiree plan , transfer back to active plan even if the individual wants to stay with the medicare retiree plan? Posted by HRrules I do not understand the logic of having a Medicare eligible dependent not using Medicare A and B as their primary coverage. If the plan offers a Medicare supplement plan for the dependent over 65, the cost to the employer would be greatly reduced and the dependent would have good combined coverage. When an active employee over 65 retires do they have retiree medical with a Medicare Supplement? |
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Re: Medicare Part B snafu
posted at 12/26/2012 4:14 PM EST
on Workforce Management
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Posts: 144
First: 9/21/2011 Last: 2/8/2013 |
Last I researched, I thought the individual was allowed to made the choice to drop the employer plan, but there could be no coercion or special favors by the employer/plan to get them to opt into medicare, since in reality the employer would be pushing the burden to the government system (and we all know the government is trying to keep the responsibility on the employer and has specific rules/laws that cover what an employer can do with a medicare eligible employee...no the employer doesn't WANT to keep them, but in most cases they must do so). Part of this will also depend on how big the employer is. I think the cutoff is 20. So Howard, the issue is not logical....of course having Medicare eligible employees and dependents on A&B is better for the employer, but that is not what Uncle Sam allows. I think your issue stems from having a medicare retiree plan (supplemental?) rather than from the spouse opting out onto medicare with no additional insurance from the employer. I've not had an issue (pre-PPACA) if they opt out of all employer plans. If you haven't already I would put together a document on who told you to do what and when. Who told you this should and should not have taken place? your insurer? They might be liable for part of the Medicare penalty. I am not sure that you have any standing on requiring the spouse to drop the medicare and go back onto your plan. You may in the end be liable for the Medicare fee. Check with the retiree plan insurer to see if there is anything in your plan document that allows for the retiree to be dropped if they can and refuse to be covered under the normal plan. This might be a hindsight situation that you need to amend your current plans for..... |
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Re: Medicare Part B snafu
posted at 1/9/2013 2:32 PM EST
on Workforce Management
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Posts: 1
First: 1/9/2013 Last: 1/9/2013 |
In Response to Re: Medicare Part B snafu: [QUOTE]Last I researched, I thought the individual was allowed to made the choice to drop the employer plan, but there could be no coercion or special favors by the employer/plan to get them to opt into medicare, since in reality the employer would be pushing the burden to the government system (and we all know the government is trying to keep the responsibility on the employer and has specific rules/laws that cover what an employer can do with a medicare eligible employee...no the employer doesn't WANT to keep them, but in most cases they must do so). Part of this will also depend on how big the employer is. I think the cutoff is 20. So Howard, the issue is not logical....of course having Medicare eligible employees and dependents on A&B is better for the employer, but that is not what Uncle Sam allows. I think your issue stems from having a medicare retiree plan (supplemental?) rather than from the spouse opting out onto medicare with no additional insurance from the employer. I've not had an issue (pre-PPACA) if they opt out of all employer plans. If you haven't already I would put together a document on who told you to do what and when. Who told you this should and should not have taken place? your insurer? They might be liable for part of the Medicare penalty. I am not sure that you have any standing on requiring the spouse to drop the medicare and go back onto your plan. You may in the end be liable for the Medicare fee. Check with the retiree plan insurer to see if there is anything in your plan document that allows for the retiree to be dropped if they can and refuse to be covered under the normal plan. This might be a hindsight situation that you need to amend your current plans for..... Posted by rrupert[/Q Nowhere in your description of the snafu do you mention whether the dependent of the Medicare eligible employee is him/herself Medicare eligible. If they are not Medicare eligible than they would not be allowed to to remain on the <edicare PArt B Plan, but would be allowed to return to the company's active medical insurance plan. Linda |
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