Medicare Or The Marketplace?

If you are nearing age 65 and are currently getting your health insurance through the Affordable Care Act (“Obamacare”), should you stay on your plan or switch to Medicare?

In most cases, you should go on Medicare, says an article on

While you may be able to keep your marketplace plan after turning 65, it could be costly.

One incentive to switch to Medicare is that if you are receiving a subsidy under Obamacare, you will lose that subsidy once you are eligible for Medicare, in most cases.

More importantly, if you stay in your marketplace plan after Medicare eligibility, you could be subject to late fees when you do sign up for Medicare Part B, which overs outpatient care. Part B has a monthly premium that changes from year to year and if you don’t sign up as soon as you are eligible, you are subject to a 10 percent penalty for each year that enrollment is delayed. There may be exceptions, however, if you are on an employer’s plan.

There may be some cases where the very wealthy might be better off staying on a marketplace plan, as the cost may be less than the premiums for Medicare Part B, which are income-based.

But the Medicare Rights Center advises against this. In most cases, the benefits will be greater on Medicare.

If you have questions about elder law, feel free to contact us for a consultation at (626) 696-3145.


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