Many Lockheed Martin employees have served our great nation in the armed forces or reserves. Thank you for your service! In doing so, they may still carry or be eligible for Tricare insurance coverage. As many employees are turning age 65, they also are crossing the Medicare bridge. The questions frequently arise about which insurance is needed and how do they all work together.  If you’ve asked yourself this same question, then we have the answers for you.  Keep reading to discover how Lockheed Martin’s health insurance, Medicare and Tricare for Life all work together.

As a Lockheed Martin employee, you have access to the group health insurance plan.  If you have elected to participate in the group plan, then your Lockheed health insurance is your primary/first insurance to pay your claims.  If you are under age 65 and carry Tricare insurance, then Tricare is your secondary/second insurance to pay the remainder of your claims.  Once you turn 65 and while you’re still working, the health insurance landscape changes as you come to the Tricare for Life and Medicare bridge.  This is where Tricare coverage ends and Tricare for Life begins; however, Tricare for Life is dependent on you being enrolled in Medicare Part B. Therefore, there are a few ways to cross this bridge when you have both group coverage and Tricare, so it’s extremely important to examine your situation to see which steps forward are best for you and your family.

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!

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

 

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