Some retiree insurance plans offer prescription drug coverage. If your retiree insurance offers creditable drug coverage and you prefer it to Part D, you can delay Part D enrollment without penalty.
Even if your retiree drug coverage is not creditable, you may want to keep it if you have high drug costs. This is because some retiree drug coverage helps lower the cost of Part D drugs when you are in the coverage gap (donut hole). Contact your plan to learn whether it coordinates with Part D coverage. You should also consider whether the cost of the retiree plan’s monthly premium is offset by the coverage it provides for copayments, or whether you are better off disenrolling and only keeping Part D.
In some plans, you cannot drop drug coverage without losing your retiree health coverage, or vice versa. Also keep in mind that your spouse and dependents are not eligible to use your Medicare coverage and may need other insurance if you drop your retiree plan. Finally, some companies offer their own Part D plan as their retirement drug coverage; if this is the case you cannot have that coverage and another Part D plan. Contact your benefits administrator or your employer’s human resources department before making Part D enrollment decisions.
Note: You may also be eligible for Extra Help, which provides assistance with part D costs for individuals with lower incomes.