Exact timing of ending employment, starting SS, starting Medicare B and Medigap and Part D?

InTheWoods

InTheWoods

New Member
Location
Maryland
I'm SO close to retiring. I have maybe 1 week of work I promised to complete, and 7 weeks of vacation. Now I'm trying to figure out the exact sequence of events that has to happen.
I want Medigap and Part D plans and am zeroing in on my choices, and want to start receiving SS payments. I turn 66 in 11 days.
I want SS to automatically pay Medigap and Part D, so I guess turning on SS has to be the first step. Then turning on the Medigap and Part D. I don't want to go without coverage, so that means Medigap and Part D have to be turned on as of my last day of employment, and I definitely want these things to start while I'm eligible without medical tests or penalties. But that means SS has to be on before employment ends, yet there is some penalty for that because I'm not 66.5 yet. It seems contradictory. In addition to all that, I'm not sure how precisely these things can be timed anyway - do I get to choose the exact day, or only the month, or what?
So is there overlap in these things? Or perhaps the penalty for getting SS while working is negligible for a brief period so I start with that?

Thank you!
 
I don't have Part D. I buy medications from Canada, and my total cost is less than what my co pay would be with insurance that I had to pay for so that I could pay more than what Canadian medications cost. But Pharma has been lobbying congress to punish those who buy meds from Canada. The service could be gone at any time.

I took Social Security as soon as I qualified. My sister and brother in law waited and get more, but they are still by most metrics of working people what we call poor. Taking now or later is a crap shoot. I don't think there is a correct answer to that question, not in my circumstances, anyway.
 
When I was getting close to retirement, I also was confused as to the sequence of events and what was needed. I waded through dozens of websites trying to figure it all out, but eventually called a Medicare advisor company and they told me exactly what to do, when, and why. Best move I ever made.
 
caroln said:
When I was getting close to retirement, I also was confused as to the sequence of events and what was needed. I waded through dozens of websites trying to figure it all out, but eventually called a Medicare advisor company and they told me exactly what to do, when, and why. Best move I ever made.
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I met a woman on a train just when I needed advice. She worked at a university in a department that specialized in insurance and health care. She solved all my questions in just a few minutes.
 
If you're a week away from your last day of work I don't think things are going to time out for you very well. You're not going to be able to "turn on" SS or Medicare instantly, there's an application process that takes a bit of time. I seem to remember application till approval took just under three months for me.

You may want to look at continuing your employers health plan (COBRA) until you have SS and Medicare finalized. You will have to pay out of picket for COBRA but best to stay covered. Also your employer may carry your health insurance for the duration while you use your seven weeks of vacation time, check on that.

One thing I did was make my last day of work the first day of the month, that gave me another month of health care paid by my employer.
 
C50 said:
If you're a week away from your last day of work I don't think things are going to time out for you very well. You're not going to be able to "turn on" SS or Medicare instantly, there's an application process that takes a bit of time. I seem to remember application till approval took just under three months for me.

You may want to look at continuing your employers health plan (COBRA) until you have SS and Medicare finalized. You will have to pay out of picket for COBRA but best to stay covered. Also your employer may carry your health insurance for the duration while you use your seven weeks of vacation time, check on that.

One thing I did was make my last day of work the first day of the month, that gave me another month of health care paid by my employer.
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Smart!
 
C50 said:
If you're a week away from your last day of work I don't think things are going to time out for you very well.
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Yes, I was a bit afraid of this. Well, I'm a week from the last day of truly laboring, but I have 5 weeks of vacation to consume after that, which brings me through July 5, and my medical benefits then run through the end of July. That means I have a little over 2 months. I don't know if the exact timing will mean I'll need to get COBRA, but if I would otherwise have any gap, I absolutely will!!
 
I can't remember how long it took after I applied until SS kicked in. I don't remember getting antsy about it. As I recall they told me how long it would take when I signed up. The agent also told me how much to the penny I would receive after taxes, and as I recall, he was spot on in a surprising way I didn't expect from the government.
 
StarSong said:
The best place to get this information and apply for Medicare and SS is https://www.ssa.gov/.
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I already found out a lot there. The ability to compare Medigap and Part D plans there is really nice. Though I didn't figure out how to apply for benefits yet. I do already have Part A.
It isn't important exactly when SS benefits start coming to me, I just want the Medicare extras in place and getting paid for out of SS. I guess I'm not sure how to make that timing happen.
 
I learned more on this. I can start the Medicare B, Medigap and Plan D before I am receiving SS benefits. I just have to pay some other way, which will be fine. I can then get benefits started whenever convenient, and switch to have the other things paid out of the benefits from then on.
 
You say you have seven weeks of vacation (or 5?, you gave different numbers in the OP and your reply #7). Won't you be covered by your employer's health plan during that time? Since I've had medical coverage through my employers (municipal then state) I have no idea if you can get coverage privately until SS coverage kicks in and at that time I believe it will be just basic Medicare. I've always heard that one should apply for SS three months before expect to be able to collect. @StarSong's reply is good advice.

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I applied on March 1 to Social Security for a June 1 retirement. The website says it takes 2-4 weeks to process most claims. My claim took almost 9 weeks. I can’t apply for my medigap and drug plan until I receive my Medicare number, which will be sent soon. Medicare won’t send it until Social Security has processed the application. I would start your application as soon as possible.
 
OneEyedDiva said:
You say you have seven weeks of vacation (or 5?, you gave different numbers in the OP and your reply #7). Won't you be covered by your employer's health plan during that time?
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sadie123 said:
I can’t apply for my medigap and drug plan until I receive my Medicare number, which will be sent soon. Medicare won’t send it until Social Security has processed the application.
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Thank you both!

OneEyedDiva, I did give different numbers of weeks of vacation in my two posts. I think I made some mistake somewhere and haven't figured out where, but carefully checking and adding and laying it out on the calendar indicates it is 5 weeks. I did take some vacation between posts but not 2 weeks! Well, darn. Soon I won't have to track vacation days at all, right?? Also, somebody told me I should use up all my sick time, which might be more than 2 weeks, but I've never used sick time when I wasn't sick. To answer your question, yes, I will be covered by my employer's plan. I just found out that in fact I will be covered through the entire month my last day falls in, which is July. It will be Wednesday July 5 if I use all my vacation and that's the end of it, but I think I have to go in for some kind of exit interview, which would make it Monday July 10, my next work day given my short work week. Hmm, you know what? If I'm allowed to use my sick time without sickness, that might just extend me to early August, giving me until September to need these plans.

sadie123, I'm sorry to hear this Medicare number thing is holding you back! It's kind of a mess, isn't it? I've had Medicare Part A and my Medicare number for about 9 months now so I think that should be OK, my spouse has had hers even longer, and I hope to apply online for Medigap and Part D for both of us perhaps this weekend (assuming there's someplace you specify when you want it to start). As others have pointed out, I could fall back on COBRA for a month or two if there's some reason this wouldn't work.

Wow! What a lot of interconnected details!
 
InTheWoods said:
Thank you both!

OneEyedDiva, I did give different numbers of weeks of vacation in my two posts. I think I made some mistake somewhere and haven't figured out where, but carefully checking and adding and laying it out on the calendar indicates it is 5 weeks. I did take some vacation between posts but not 2 weeks! Well, darn. Soon I won't have to track vacation days at all, right?? Also, somebody told me I should use up all my sick time, which might be more than 2 weeks, but I've never used sick time when I wasn't sick. To answer your question, yes, I will be covered by my employer's plan. I just found out that in fact I will be covered through the entire month my last day falls in, which is July. It will be Wednesday July 5 if I use all my vacation and that's the end of it, but I think I have to go in for some kind of exit interview, which would make it Monday July 10, my next work day given my short work week. Hmm, you know what? If I'm allowed to use my sick time without sickness, that might just extend me to early August, giving me until September to need these plans.

sadie123, I'm sorry to hear this Medicare number thing is holding you back! It's kind of a mess, isn't it? I've had Medicare Part A and my Medicare number for about 9 months now so I think that should be OK, my spouse has had hers even longer, and I hope to apply online for Medigap and Part D for both of us perhaps this weekend (assuming there's someplace you specify when you want it to start). As others have pointed out, I could fall back on COBRA for a month or two if there's some reason this wouldn't work.

Wow! What a lot of interconnected details!
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Thank you for your answer. My advice to you is take the sick time you've earned and deserved if it's possible. That should also extend the time you will be covered by insurance. Of course check all that out with your HR department. And best wishes on your upcoming retirement. Let us know when you're a free man. :D
 
Today is my last day working! All I'm doing is writing goodbyes. I then have 5 weeks of vacation and an exit interview. Turns out I only have one sick day left -- if you can believe it, I had a medical absence and forgot the first couple weeks of it counted as sick days, so there's almost nothing left there.
And, I got my Social Security online account working again. The 2nd factor authentication broke, it won't send a code to my cell, so I had to use paper mail to get it reset so it uses an email account to send the code. First thing I did was to request the beginning of benefits. But I think I chickened out about something: there was a scary warning about not receiving the full amount unless I delayed until November when I turn 66.5. I think it was referring to the simple fact that the longer you wait the higher benefits will be, but it scared me, and I feared there was some other penalty or something it was talking about. So I'm going to miss maybe 2 or 3 months of benefits at the beginning, but they'll be larger thereafter.
Maybe today I will choose Medigap and Part D plans and get them ordered.
 
Retired 1/26 this year. Paid my health premium so I could have coverage in February. Also applied for SS which started in March. I knew I could not apply for Medicare till June ( when I turn 65 in the fall ) Just yesterday my Medicare card just came in the mail automatically ( I was surprised ). So next month I will meet with a health insurance broker like I did in February ( for present health insurance as Cobra was $2,000 a month ) to get my medi gap. My husband who has no issues took advantage plan. I have a few so I’m told medi gap is better for me.
 
Lexi said:
I have a few so I’m told medi gap is better for me.
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I think Medigap is better for most of us! The way insurers are scrambling to sell us Advantage speaks volumes.

So, I just wanted to correct something I was saying upthread. I had been concerned because I wanted to make sure payment for Medigap came from my SS benefit. I reasoned automating it this way would guarantee there'd be no way a payment got missed, and therefore no way I might lose Medigap coverage.

But it doesn't work that way for Medigap. They can't tap your SS directly. Advantage can, but not Medigap. Instead they are going to use my checking account and routing numbers and pull the payments automatically.

Sorry for the mistake -- wow, there sure are a lot of interconnected important details!
 
InTheWoods said:
I think Medigap is better for most of us! The way insurers are scrambling to sell us Advantage speaks volumes.

So, I just wanted to correct something I was saying upthread. I had been concerned because I wanted to make sure payment for Medigap came from my SS benefit. I reasoned automating it this way would guarantee there'd be no way a payment got missed, and therefore no way I might lose Medigap coverage.

But it doesn't work that way for Medigap. They can't tap your SS directly. Advantage can, but not Medigap. Instead they are going to use my checking account and routing numbers and pull the payments automatically.

Sorry for the mistake -- wow, there sure are a lot of interconnected important details!
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ITW...since SS automatically deducts Medicare premiums from recipients' benefits, does that mean Medigap will just be deducting just the additional cost from your checking account? I have a group advantage plan (PPO) and no extra is deducted from my SS, just the basic premium.
 
OneEyedDiva said:
does that mean Medigap will just be deducting just the additional cost from your checking account?
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Yes. The Medigap (also known as Medicare Supplement) plan G will be a private insurance contract, in my case with Mutual of Omaha (who had much fewer complaints than most companies and also one of the lower rates, though not the lowest). Medicare set up rules for the minimum requirements for insurance to be called Medicare Supplement Plan G, and the medicare.gov web site included it on their lists for comparing in your zip code, but otherwise it's a private insurance plan. Like boat insurance, I suppose. The plan covers things beyond what Medicare itself covers. Medicare will get paid out of SS, but this private plan has to be paid for by me, and they do automatic payments through checking account routing and account numbers.
 
InTheWoods said:
Yes. The Medigap (also known as Medicare Supplement) plan G will be a private insurance contract, in my case with Mutual of Omaha (who had much fewer complaints than most companies and also one of the lower rates, though not the lowest). Medicare set up rules for the minimum requirements for insurance to be called Medicare Supplement Plan G, and the medicare.gov web site included it on their lists for comparing in your zip code, but otherwise it's a private insurance plan. Like boat insurance, I suppose. The plan covers things beyond what Medicare itself covers. Medicare will get paid out of SS, but this private plan has to be paid for by me, and they do automatic payments through checking account routing and account numbers.
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Thank you for answering. Good thing you are handing things now.
 
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