Retirement

If you retire when you or a family member you cover for health insurance is under the age of 65—and therefore not yet eligible for Medicare—you need to consider how you will maintain health insurance coverage. You may:

• Extend your current Company health coverage under COBRA for a limited time (see details below)
• Consider enrolling in your spouse or domestic partner’s plan through their employer, if available
• Buy coverage through Via Benefits or the Marketplace at healthcare.gov. Note: Via Benefits can’t enroll residents of Vermont, Rhode Island, or Massachusetts in plans through the marketplace or directly through the insurance carrier due to state licensing restrictions. However, Via Benefits can help you choose a plan from publicly available information on the state’s anonymous shop and compare websites.
• Review this Planning for Medicare recorded presentation to hear from BCBSMA on the countdown to 65. 

Note: A select group of legacy Sigma Aldrich and Millipore Chemicals employees may be eligible for retiree medical benefits if they meet certain age, service, and other requirements. Review your benefit options and eligibility on benefits4meenroll.com.

COBRA Coverage 

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows you to continue your active coverage for up to 18 months following your retirement. 

• You will receive information regarding the cost of COBRA, how to elect coverage, and how to pay your premiums shortly after your retirement.

• You can elect to purchase continued medical, dental, and/or vision coverage, as long as you are enrolled in these plans on your last day of work. You may also be eligible to continue your Health Care Flexible Spending Account (FSA) and/or participation in the Employee Assistance Program (EAP).
• The cost of COBRA is 102% of the total monthly premium for medical, dental, vision, and a Health Care FSA —which means it may cost you more than the other health insurance options available to you. Continuing participation in the EAP will cost you 102% of the cost the Company pays to offer that coverage to you, since you don’t pay for coverage as an active employee.

Medicare is made up of four parts:

As an alternative to Part C and D, you may also find other Supplemental or Advantage benefit programs available through private insurance companies. As you consider which coverage is best for your needs, ask yourself:

• Would you prefer to pay a higher monthly premium in exchange for less money when you receive care and a wider network of providers?
• Do you anticipate having significant medical expenses after you turn 65?

There is no one right answer about which coverage to choose. If you have questions about your options, Via Benefits can help: Learn more about Via Benefits.

Enrolling in Medicare 

You have an opportunity to enroll in Medicare Parts A and B during your Initial Enrollment Period (IEP), which is a seven-month window that begins three months before you turn 65 and ends three months after your birth month. For example, if you turn 65 on September 29, your IEP would be from June 1 – December 31.

If you don’t enroll in Medicare during this time, you may have to pay a later enrollment penalty for as long as you have Part B coverage. Your monthly premium will go up 10% for each 12-month period you were eligible for Part B but didn’t enroll. This penalty does not apply if you delayed enrollment because you were covered under a group medical plan. For example, if you retire from our Company after age 65, and you provide proof of coverage under our Company medical plan, you would not be penalized.  

The Annual Election Period (AEP) runs every year between October 15 and December 7. This will be your once-a-year opportunity to change your health plans and prescription drug coverage for the coming year. 

You have two options: 

1. Sign up to get only Medicare coverage 
2. Apply to start getting benefits from Social Security (or the Railroad Retirement Board). Once you’re approved to get those benefits, you’ll automatically get Part A coverage. You’ll choose if you want Part B coverage when you apply for benefits. 

When you’re ready, contact Social Security to sign up:

• Apply online (at Social Security): This is the easiest and fastest way to sign up and get any financial help you may need. You’ll need to create your secure my Social Security account to sign up for Medicare or apply for Social Security benefits online.
• Call 1-800-772-1213. TTY users can call 1-800-325-0778.
• Contact your local Social Security office.
• If you or your spouse worked for a railroad, call the Railroad Retirement Board at 1-877-772-5772.

For more information about Medicare, call your local Social Security Office.

Note: If you’re currently enrolled in the Consumer Choice Plan with HSA when you enroll in Medicare, you can’t make contributions to your HSA for any months after you are enrolled in Medicare, even if you’re also covered by an HSA qualifying plan.