If you are turning 65 soon, congratulations on reaching this milestone! As you enter this new life phase, you may wonder how to transition from Covered California to Medicare. This can be a confusing and overwhelming process, but with a little bit of knowledge and guidance, you can make a smooth transition.
What Is Medicare?
Medicare is a health insurance program offered by the federal government to Americans aged 65 and older, people under 65 with certain disabilities, and those suffering from End-Stage Renal Disease (ESRD).
You can enroll in Medicare during the seven-month period that starts three months before you turn 65 and ends three months after the month you turn 65. This period is the Initial Enrollment Period (IEP).
If you miss the IEP, you may have to pay a late enrollment penalty or wait until the next General Enrollment Period (GEP) to enroll in Medicare.
Medicare has four parts: Part A, Part B, Part C, and Part D.
Does Covered California offer Medicare?
Covered California does not offer Medicare plans. So, if you are enrolled in Covered California and become eligible for Medicare, it is important to take immediate action to prevent coverage gaps or financial penalties.
It is important to note that once you qualify for Medicare, you will no longer be eligible for financial assistance through Covered California. If you continue to receive financial assistance, you may have to pay some or all of it back to the IRS at tax time.
Here are a few things you should know about the transition from Covered California to Medicare:
- Inform Covered California about your Medicare Eligibility: It is important to inform Covered California about your eligibility for Medicare. If you become eligible for Medicare, you must report it to Covered California within 30 days.
- Cancel Covered California Plan: After confirming your eligibility for Medicare, you will need to cancel your Covered California plan at least 14 days before you want your coverage to end. You can do this by contacting Covered California directly or contacting our experts at Skyline Benefit.
What if I decide to keep my Covered California plan if I’m eligible for Medicare
- You may have to pay lifetime penalties for late enrollment in Medicare, and your premiums may increase by 10 percent or more.
- You may have to pay back all or some of your premium tax credits to the Internal Revenue Service (IRS).
What Happens to my family members on my Covered California Plan who are not eligible for Medicare
Suppose you have family members on your Covered California plan who are not eligible for Medicare. In that case, they can remain on the plan and continue receiving financial assistance if eligible. However, their eligibility will have to be re-evaluated, which may result in changes to the amount of financial assistance they receive.
How Can I automatically be enrolled in Medicare?
If you receive income from Social Security Disability Insurance (SSDI), you are automatically eligible for Medicare enrollment. However, if you don’t fall into this category, then you must actively enroll in Medicare, as it’s not an automatic process for you.
To check if you are eligible for Medicare and find out if you need to pay a premium for Part A (hospital insurance), you can contact the Social Security Administration at (800) 772-1213. They can also inform you about the start date of your coverage.
Takeaway
Transitioning from Covered California to Medicare can be daunting, but with the right knowledge and guidance, it can be a smooth and easy process. Remember, if you miss your Initial Enrollment Period, you may have to pay a late enrollment penalty or wait until the next General Enrollment Period to enroll in Medicare. It is crucial to inform Covered California about your Medicare eligibility and cancel your Covered California plan once you are eligible for Medicare. If you decide to keep your Covered California plan, you may have to pay lifetime penalties for late enrollment in Medicare, and your premiums may increase by 10 percent or more. If you have any questions or need further assistance, don’t hesitate to contact our experts at Skyline Benefit or contact the Social Security Administration at (800) 772-1213.
Looking for Assistance with Covered California?
Skyline Benefit is a certified insurance agency with Covered California and an independent Medicare insurance broker that offers affordable and flexible Medicare options. Act now and get the premium subsidy and coverage that you deserve.
Our agents can review your medical needs and budget, and tailor your health insurance options during Covered California Open Enrollment.
Call us now at (714) 888-5112