Option 1 – Keep your group coverage and delay Medicare/Tricare for Life enrollment until retirement, meaning you are solely relying on your group plan to pay all health-related costs as your pre-65 Tricare coverage ends.
Option 2 – Keep your group coverage and enroll in Medicare Part B, which automatically enrolls you into Tricare for Life.
Option 3 – Drop your group coverage and enroll in Medicare Part B, which automatically enrolls you into Tricare for Life.
Once you have selected the option that works best for you, then your steps are clear. Next, you need to understand hierarchy in which the insurance carriers pay your claims. Let’s examine them under the same options as above.
Option 1 – Group coverage only. This is pretty simple. Your group health insurance is the only payor other than you paying your co-pays and coinsurance.
Option 2 – Group coverage, Medicare Part B and Tricare for Life. Your group health insurance pays first, then Medicare pays up to its limit, then Tricare for Life typically pays the remainder.
Option 3 – Medicare Part B and Tricare for Life. Medicare pays first, then Tricare pays second.
In all scenarios, each insurance carrier has set limits on how much they are willing to pay for covered services. Also, they each have a list of excluded services, so be sure to take the time to understand what is covered and what is not along with being aware of any out of pocket expenses you might still incur. To learn more, you can visit Tricare for details and to download the handbook as well as reading the Medicare Handbook on Who Pays First.
Don’t forget to make sure you have reviewed your overall financial plan before making this decision. Don’t feel like you have to cross the bridge alone. We have Lockheed Martin specialists standing by, ready to help. Give us a call at 817-210-3444 or click here to book a complimentary consultation today!
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