Employer Health Insurance v. Medicare

Increasingly more Americans find themselves still in the workforce after that magic birthdate of Medicare eligibility. Whether employer health insurance or Medicare is better for an individual depends on their individual circumstances and needs.

So, should you jump off your employer sponsored insurance (ESI) for a Medicare plan or are you better off staying put as long as you're employed & eligible? Where do you go for help?

First, get on the phone with your employer plan administrator or HR department well in advance of your Medicare eligibility date so you have ample time to decide. Based on federal rules, like the size of employer, they'll be able to give you some very baseline information. Sadly, many HR professionals will shy away from having this discussion the probably advise you to go to medicare.gov or aarp.org for information. Not very helpful. See, there are significant rules to employers suggesting or encouraging their employees to move over to Medicare once eligible. Your HR professional is just trying to play by the rules!

Regardless, here are some key differences between the two options that you should know about: