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How Other Insurance Works with Medicare
Employer or Union Health Coverage
This is health coverage based on your, your spouse’s, or other family member’s current or former employment.
If you or your spouse (or family member if you’re disabled) is still working and you have coverage through an employer (including the Federal Employee Health Benefits Program) or union, contact your employer or union benefits administrator to find out how your insurance works with Medicare. It may be to your advantage to delay Part B enrollment. When the employment ends, three things happen:
- You may elect COBRA coverage, which continues your heath coverage through the employer’s plan (in most cases for only 18 months) and probably at a higher cost to you.
- You have 8 months to sign up for Part B without a penalty. This period will run whether or not you elect COBRA. If you elect COBRA, don’t wait until your COBRA ends to enroll in Part B. If you enroll in Part B after the 8 months, you may have to pay a penalty.
- When you sign up for Part B (and are age 65 or older), your Medigap Open Enrollment period begins.
TRICARE
TRICARE is health insurance coverage for active duty military or retirees and their families.
If you have Part A and TRICARE, you must enroll in Part B to keep your TRICARE coverage. However, if you’re an active duty service member, or the spouse or dependent child of an active duty service member, the following applies to you:
- You don't have to enroll in Part B to keep your TRICARE coverage while the service member is on active duty
- Before the active-duty service member retires, you must enroll in Part B to keep TRICARE without a break in coverage
- You can get Part B during a Special Enrollment Period (SEP) if you have Medicare because you're 65 or older, or you're disabled
Tip: It will almost always be to your advantage to keep your current coverage without any changes. However, if you have limited income and resources, you may quality for Extra Help from Medicare.
Caution: Call the Department of Defense at (800) 538-9552 for information about military retiree benefits. If you have TRICARE for Life (for military retirees), contact your benefits administrator for more information about your TRICARE for Life coverage before you make any changes. Go to www.TRICARE.mil for more information about TRICARE for Life.
Tip: If you lose your TRICARE coverage and join a Medicare drug plan, in most cases, you won't have to pay a penalty, as long as you join within 63 days of losing your coverage.
COBRA
A Federal law that may allow you to temporarily keep employer or union health coverage after the employment ends or after you lose coverage as a dependent of the covered employee. There may be reasons why you should take Part B instead of, or in addition to, COBRA.
Caution: If you waived Part B coverage due to having Employer or Union coverge and elect COBRA coverage as a result of employment ending, you have 8 months to sign up for Part B without a late enrollment penalty.
Federal Employee Health Benefits Plan(FEHBP)
Health coverage for current and retired Federal employees and covered family members.
Tip: It will almost always be to your advantage to keep your current coverage without any changes. However, if you have limited income and resources, you may qualify for Extra Help from Medicare.
Caution: Call the Office of Personnel Management at (888) 767-6738 or visit www.opm.gov/insure for information and before you make any changes to your current coverage. You may also contact your FEHBP insurer.
Tip: If you lose your FEHBP coverage and join a Medicare drug plan, in most cases you won’t have to pay a penalty, as long as you join within 63 days of losing your coverage.
Veteran’s Benefits
Health coverage for veterans and people who have served in the U.S. military. You may be able to get prescription drug coverage through the U.S. Department of Veterans Affairs (VA) program.
Caution: You may join a Medicare drug plan, but if you do, you can’t use both types of coverage for the same prescription at the same time. For more information, call the VA at (800) 827-1000 or visit www.va.gov.
Indian Health Services
Health care services for American Indians and Alaska Natives.
If you get prescription drugs through an Indian health facility, you will continue to get drugs at no cost to you and your coverage won’t be interrupted. Joining a Medicare drug plan may help your Indian health facility because the drug plan pays the indian health facility for the cost of your prescriptions. Talk to your local Indian health benefits coordinator who can help you choose a plan that meets your needs and tell you how Medicare works with the Indian health care system.
Citation: Medicare & You |
Medicare Program 
