Why Employers Encourage Employees Toward Medicare
As employees reach Medicare eligibility age (usually 65), many companies start nudging them off the employer-sponsored plan and onto Medicare. Why? It saves the company money. Large Group insurance plans use composite ratings, which average costs across all employees regardless of age. Medicare-aged employees tend to be more expensive to insure, so by moving them off the plan, the employer reduces the average cost for everyone else. It’s a financial decision — but it might not be in your best interest.
Do I Have to Leave My Company Plan?
Absolutely not. In many cases, you have the right to stay on your employer plan — and sometimes you should. For example, if your company plan offers stronger benefits or if your spouse is not yet eligible for Medicare and needs coverage, it might make more sense to stick with the group insurance. Just because your employer is pushing doesn’t mean you have to go. Understand your options before making a move.
Employer-Offered Medicare Plans are Often Not the Best
Here’s the tricky part: some companies do offer Medicare plans — but in our experience, they’re often subpar. These group Medicare plans tend to be stripped-down versions of what you can get on the open Medicare market. Why? Because the insurance companies know they have a captive audience. Many employees accept these plans without realizing they could get much better coverage (and sometimes lower costs) by enrolling on their own.
Don’t Let the Company Decide For You
The best move? Talk to an expert who understands the entire Medicare landscape. At HealthyMarks, we specialize in helping people compare their employer options with real Medicare coverage — so you can make the best choice for you. Don’t settle for what your employer offers without looking at the full picture.
Keaton Marks is the owner and CEO at HealthyMarks including the medicare team. Keaton was born and raised in Encinitas. He often rode his bike through town and to the local beaches like Moonlight. Keaton knows it is important to have a local resource, someone who understands the area, the hospitals and networks of doctors. Keaton is proud to be a local Medicare broker who is able to assist the people in his town when selecting medicare plans.
Keaton believes one thing above all else: “Medicare is confusing… but it doesn’t have to be! That is where HealthyMarks Medicare comes in” Please contact me with any questions.