Frequently Asked Questions #5

Some of the most frequently asked questions we get from people under the age of 65 concerns the relationship between the Marketplace (Obamacare) and Medicare. There seems to be a great deal of confusion about how these two insurance programs work. Here are this week’s questions:

Will my Marketplace insurance end automatically when I become eligible at age 65 for Medicare? The short answer to this question is “no.” You must go to or contact your Marketplace insurance carrier to cancel your plan.

Can I keep my Marketplace plan after I become eligible for Medicare? Yes, you can keep your Marketplace plan after becoming eligible for Medicare. This will not, however, exempt you from enrolling into Medicare Part A and Part B during your initial enrollment period. If you delay your enrollment into Part B, or Part A, if you must pay a premium for it, you may be assessed a late enrollment penalty if you decide to sign up after the initial enrollment period.

I am receiving a tax credit to help pay for my Marketplace plan. Will I continue to receive this tax credit once I become Medicare eligible? This is a tricky one. Once your Medicare Part A coverage starts, you won’t be eligible for a premium tax credit for a Marketplace plan. If you kept your Marketplace plan, you’d have to pay full price.

Can you give me an example of losing my tax credit? Let’s say you are on a Marketplace plan that has a premium of $1,100 per month. You have a tax credit of $1,000 per month, which means you would pay a monthly premium of $100 per month for your plan. Once your Medicare Part A begins, the $1,000 tax credit goes away, and you would have to pay the full premium of $1,100 per month.

If you have questions regarding any aspect of Medicare or Medicare health plans contact us. Feel free call us at Alabama Health Guidance (256-648-5710), stop by our office at 885 Florence Blvd. (Four Lane Shopping Center), or email me at Alabama Health Guidance is an independent insurance agency and is not affiliated with Medicare or any other government agency.

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