HR employee resources - Medicare enrollment
This resource is for employees considering enrolling in Medicare before their retirement or termination of employment from UWL.
Persons that are eligible for Medicare, (most people qualify upon the age of 65), must be enrolled in the hospital (Part A) and medical (Part B) portions of Medicare at the time of their retirement or termination of employment.
For active UWL employees’ enrollment into Medicare coverage is deferred until retirement or the termination of their employment.
Persons that are Medicare eligible and active as a UWL employee may consider enrolling in Medicare Part A as there is no cost to them and Medicare Part A may cover hospitalization charges that are not covered under the UWL medical plan. While there may be a benefit of expanded coverage for hospitalization benefits, there is no payroll premium reduction to your current premium payments for health insurance at UWL when you are enrolled in Medicare Part A.
Premium rates begin to decrease once the employee is eligible for Medicare and has official retired or their employment has terminated. At this point, the premium costs are associated with supplemental coverage of the Medicare plan(s) – Parts A, B and D.
Should an employee fail to enroll into all available portions of Medicare (A, B and D) upon retirement or termination of employment, they may be liable for the portion of claims that Medicare would have paid beginning on the date Medicare coverage would have become effective.
For example, if you fail to enroll in Medicare A, B or D within the grace period after you have retired or terminated employment, and you became eligible prior to the retirement or termination date, you may be liable for the portion of claims incurred from the date of your retirement or termination from UWL to when you actually do enroll in Medicare.
- When you receive your Medicare card, ETF requires proof of Medicare coverage. More information on ETF’s requirements post-Medicare enrollment can be found here.
- If you become eligible for Medicare, your eligibility for COBRA coverage ends.
- (State and Retirees only) ETF does not require employees or their dependents to enroll in Medicare until the employee, (called the subscriber), retires, terminates employment, or health insurance coverage as an active employee cease. If the employee or their dependents are insured as an active employee under a non-state group plan, enrollment in Medicare may be deferred until retirement from that job. At the time of the employee’s retirement or termination of employment, the employee and their dependents who are eligible for Medicare must enroll for the Part A (hospital) portion and Part B (medical) portion of Medicare. When the employee and/or dependents are retired or terminate employment and are eligible for Medicare Parts A and B, their group health insurance coverage will be integrated with Medicare and the monthly premium will be reduced.
- In general, enrollment in Medicare Part D (prescription drug coverage) is voluntary; however, employees and their dependents may be assessed a penalty if they do not enroll when they are first eligible or are not insured with creditable coverage. Medicare Part D coverage is provided by the State of Wisconsin Group Health Insurance Program.
- ETF Medicare Information FAQs: https://etf.wi.gov/its-your-choice/2020/health-benefits/medicare-information-faqs
- Social Security Administration, Medicare Benefits Program: https://www.ssa.gov/benefits/medicare/