Losing your job can be stressful, especially when you lose your medical benefits. Fortunately, there is a solution that you can explore: enrolling in Medicare after a job loss.
Below, we discuss how to begin Medicare coverage if you recently became unemployed. By taking advantage of the Special Enrollment Period, you’ll have peace of mind and the right medical benefits.
How to Qualify for Medicare After a Job Loss
You can qualify for Medicare after a job loss if you are in the following situation: you’re above the age of 65, and you’ve already enrolled in Medicare Part A. In fact, you could be anywhere between the ages of 66 to 96.
Whatever your age, the most important thing here is that you’re already enrolled in Medicare Part A but haven’t yet enrolled in Part B. When turning 65, most people enroll in Medicare Part A only because they’re continuing to work.
Additionally, individuals usually apply for Medicare after losing their jobs if there are no other insurance options available. Meaning that you’re no longer working your job and you don’t have other employment lined up somewhere else. If you’re married, your spouse is no longer working either, so there are no insurance options available besides Medicare.
When Does Medicare Coverage Start?
Medicare coverage always begins on the first day of any month and never in the middle. For example, if you’re enrolling this month, your Medicare coverage won’t begin until the first day of next month.
Medicare Enrollment Periods Explained
Medicare allows you to enroll in Medicare coverage at two different times.
The first enrollment period is called the “Initial Period,” and it’s for people coming into Medicare right when they turn 65. If you’re beyond this initial enrollment period, Medicare has a second option available. This is called the “Special Enrollment Period,” or SEP. The SEP is for anyone who was working at 65 but has now lost employer coverage and needs Medicare benefits.
How the Medicare Special Enrollment Period Works
The special enrollment period lasts for eight months. This means that once your employer coverage has ended, you have eight months to come into Medicare. While this may sound like good news, there is a bit of a catch you should know about.
Let’s suppose you’ve lost your job and you have no insurance plan. You’re within the eight-month period, but you haven’t started your medicare coverage yet. During this time, you end up with a large claim, such as from an unexpected health issue or an accident that requires immediate medical care. Whatever it is, you need insurance.
There may be other insurance options, like COBRA, supplemental, or retiree. These secondary options are always in the second payor position, with you as the first. So, if you don’t have employment insurance or medicare coverage to rely on, you’re the first one paying those medical bills.
Once your employer coverage ends, you need to have everything set up so Medicare coverage can start right away. For example, if your employer plan ends June 30th, you need to enroll up to 90 days in advance so you can start Medicare coverage on July 1st.
How to Enroll in Medicare During the SEP
There are a few steps you must take to enroll in Medicare during the Special Enrollment Period.
Medicare Enrollment After a Job Loss: Step 1
First, you have to prove to Medicare that you’ve been working and have employer coverage since you turned 65. To do so, your employer (usually someone from the HR department) must fill out a form called the CMS L564. The CMS L564 will have your name, address, and social security number, along with your employer’s name and address, plus verification that you’ve worked with them and had insurance coverage since turning 65.
If you’ve switched jobs and had multiple employers since turning 65, you’ll need to have each employer fill out a CMS L564 form. This is because Medicare needs to have a record verifying each month of your employment and coverage from the time you turned 65 all the way to the present.
Once your employers have filled out the form, you’ll send it to your local Social Security office. This can be mailed, faxed, or delivered in person. The CMS L564 form can be found online, or you can reach out toMedicare School for a blank CMS L564 form.
Medicare Enrollment After a Job Loss: Step 2
Second, you’ll need to let Medicare know which month you wish to start receiving benefits. You’ll do this by sending in a form to your local Social Security office. This form is called the CMS 40b, and it’s a pretty simple document. Essentially, all you have to do is fill out which month you’d like to start getting your Medicare benefits.
If you don’t know where your local Social Security office is located, you can use the Social Security office locator on SSA.gov to find the one nearest to you.
What Happens If You Get Another Job?
You’ve enrolled in Medicare coverage after losing your job, but what happens if you find another job and go back to work?
If your new job has insurance benefits, you’ll want to terminate your Plan B Medicare coverage and go back to Plan A only. To do so, fill out a form indicating that you want to drop Plan B coverage. You’ll send this form to your local Social Security office.
Coverage Options Beyond Plans A & B
There are several other insurance products you’ll need to have moving forward once enrolling in Medicare after a job loss. These may include supplemental plans, advantage plans, and prescription drug plans, which are all necessary to reduce your risks in the future.
We understand how difficult making the right Medicare decisions can be. To take the next step, watch our full Medicare course or schedule a free one-on-one call with a certified Medicare School Guide who can answer your questions, compare plan options, and even help you enroll.