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Employees Aged 65 and Older | Medicare

Active employee reaches age 65

Medicare Eligibility

An active employee reaching age 65 has the option of rejecting the Trust group health plan and carrying Medicare alone, or the active employee may choose to continue coverage under the Trust group health plan and enroll in Medicare.

We will send a notification letter to the employee approximately three months prior to his or her 65th birthday. This letter explains that we will assume that the active employee will maintain the group health plan and that the Trust will be the primary payor of benefits with Medicare as secondary payor. In this case, the premium rate will remain the same.

If the employee wishes to reject the group health plan and have only Medicare coverage, he or she must notify us. If the employee rejects group coverage, the Trust health plan will end on the first day of the month in which the employee reaches age 65.

If the employee maintains group coverage, Medicare will become the primary payor of benefits when the employee retires, and the Trust will be the secondary payor. We will change the subscriber’s health plan to the appropriate premium rate classification effective on the first day of the month following the date of retirement (last date worked). The retiree and/or spouse must apply for Medicare Parts A and B to retain full benefits.

Even if they do not apply, we will pay claims as if Medicare is the primary insurer and we are the secondary insurer.

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