Should I keep my employer’s retiree Medicare plan?

If you retire and are offered a Medicare-based group retirement plan, you may be told that if you turn it down, you will never be able to get back into it—and that warning may be true for your particular plan.

But do not let that warning make the decision for you: compare the actual monthly premiums, deductibles, copays, provider access, prescription coverage and benefits with an individual Medicare Supplement and Part D drug plan.

Sometimes the individual route costs less and provides a better fit; other times the retiree plan is subsidized or includes benefits for a spouse or dependent that would be difficult to replace.

Before declining anything, get the plan’s re-enrollment rules in writing, ask whether its drug coverage is creditable and confirm that any replacement coverage is approved and ready to begin.

The right answer comes from comparing the real coverage and annual cost—not from getting scared into choosing one path—and this is exactly the kind of comparison I help people make.

Source: Medicare.gov: Retiree insurance and Medicare

This general educational information is not individual plan advice. Plan availability and benefits vary by location and contract year.