In today’s world, many people are starting their own businesses or have already taken the leap. Many freelancers and contractors don’t realize how self-employment can affect their Medicare choices, especially how both Medicare and self-employment can interact.
When you’re self-employed, you can either buy your own health care coverage or use your spouse’s employer plan. However, you’ll face important decisions when it’s time to enroll in Medicare. Below are key details to guide you, particularly in dealing with Medicare and self-employment matters.
Self-Employed With Marketplace Coverage
If you buy your own health insurance through a Marketplace plan, you may keep it until Medicare starts. Once Medicare begins, you can cancel the Marketplace plan or keep it as secondary coverage. Keep in mind, once you enroll in Medicare Part A, you lose any Marketplace tax credits or savings, an important consideration for those juggling both Medicare and self-employment.
Enrollment in a Marketplace plan does not let you delay Medicare without penalty. You still must enroll at age 65. The Initial Enrollment Period lasts 7 months: 3 months before your 65th birthday, your birthday month, and 3 months after. Considering both Medicare and self-employment factors during this period is essential.
Self-Employed With Employer Coverage From a Spouse
If your spouse’s employer covers you, you may be able to delay Medicare. The employer must have at least 20 employees and offer creditable drug coverage. Some companies also require Medicare-eligible dependents to enroll at 65 to stay on the plan.
You can keep both the employer plan and Medicare, but once Medicare starts, the employer plan becomes secondary. Understanding Medicare and self-employment options fully is crucial in this scenario.
Self-Employed With Retiree Coverage
If you have retiree coverage, check with your benefits administrator about Medicare rules. The retiree plan may cover a younger spouse and dependents as primary insurance. However, once you enroll, Medicare becomes your primary coverage and the retiree plan secondary, which is important for individuals managing their Medicare and self-employment strategies.
Still Need More Information?
Understanding how self-employment affects Medicare can be tricky. Misunderstanding the rules may lead to costly mistakes. If you’re self-employed and have questions regarding Medicare and self-employment, contact us for a free consultation.
We are Independent Insurance Brokers appointed by many major carriers. We help clients find the best policies for their needs. Our team serves Winchester, VA, Martinsburg, WV, and Charles Town, WV.
For more information, call (540) 662-4432 to schedule an appointment. You can also visit medicaretrustedagents.com or follow us on Facebook at IKnowMedicare.
