As a small business owner, you have many responsibilities, including providing your employees with health insurance. However, you may not be aware of a rule that requires small businesses with 20 or fewer employees to enroll in Medicare. If any of your employees become eligible for Medicare, you must enroll in the program. In this article, we’ll explain the details of this rule and provide resources for more information.

What is the Medicare Rule for Small Businesses?

The Medicare rule for small businesses with 20 or fewer employees requires that if any employee becomes eligible for Medicare, the business must enroll in the program. This means that if any of your employees turn 65, you must enroll in Medicare. The rule applies to all types of small businesses, including corporations, partnerships, and sole proprietorships.

Why Do Small Businesses Need to Enroll in Medicare?

Enrolling in Medicare is a legal requirement for small businesses with 20 or fewer employees. If you fail to enroll in Medicare when required, you may face penalties and fines. Additionally, enrolling in Medicare can benefit your employees by providing them with additional healthcare coverage.

How Does Medicare Work with Other Types of Insurance?

If your small business provides healthcare coverage to your employees, Medicare will work with your coverage to provide additional benefits. However, if your employees are enrolled in Medicare, their Medicare benefits will be primary, and your coverage will be secondary. This means that Medicare will pay first, and your coverage will pay second.

Resources for More Information

The official Medicare website provides information on how Medicare works with other types of insurance, including Medicaid, employer coverage, and supplemental insurance. You can find the website at the following link. 

Medicare Interactive also has an article that explains how job-based insurance works when you turn 65 and become eligible for Medicare. You can find the article at the following link.

Frequently Asked Questions

Q: What if I have fewer than 20 employees?

A: If your small business has fewer than 20 employees, you are required to enroll in Medicare.

Q: What if I have more than 20 employees?

A: If your small business has more than 20 employees, you are not required to enroll in Medicare when an employee becomes eligible for the program.

Q: How do I enroll in Medicare?

A: You can enroll in Medicare by visiting the official Medicare website or by contacting a Medicare representative.

In conclusion, if you own a small business with 20 or fewer employees, it’s essential to understand the Medicare rule requiring enrollment when any employee becomes eligible. By enrolling in Medicare, you can avoid penalties and fines while providing your employees with additional healthcare coverage. It’s crucial to comply with this rule and ensure that you enroll in Medicare as soon as any employee becomes eligible. Don’t forget to refer to the resources provided in this article for more information on how Medicare works with other types of insurance and as always, don’t hesitate to reach out to the Medicare advisors at Plan Medicare for advice on your unique situation.