I'm Turning 65 Soon

As an active SEG employee approaching age 65, you need to understand how your health care and life insurance benefits may be impacted. If you have any questions after reading this, please contact the Employee Resource Center at 803-217-4444.

Medicare

You are not required to enroll in Medicare as soon as you are eligible. However, once you begin receiving Social Security benefits, you are automatically enrolled in Medicare Part A and cannot disenroll.

As long as you are actively employed by SEG, your SEG medical plan will remain your primary coverage. If you enroll in Medicare, Medicare becomes your secondary coverage.

If you choose to begin your Medicare coverage when you first become eligible, you should apply within three months of reaching age 65. You can quickly apply online at the Social Security Administration website.

Health Savings Account (HSA)

IRS regulations prohibit anyone enrolled in Medicare from contributing to an HSA. If you are employed by SEG when you become Medicare eligible and you choose to enroll in Medicare Part A or B (whether or not you use the benefit), you become ineligible to contribute to an HSA.

The maximum amount you are eligible to contribute to an HSA is prorated by the month of the year that you enroll in Medicare. For example: let’s say the annual contribution maximum for employee only coverage is $3,350 plus $1,000 catch up contribution; $4,350 total. Assume you enroll in Medicare in July, your maximum IRS allowable contribution would be $2,175 ($4,350 divided by 12, times 6 months of eligibility.)

Your HSA payroll contribution will end the first day of the month in which you turn age 65. If you are not enrolled in Medicare and wish to continue contributing to your HSA through payroll deduction, you need to call the Employee Resource Center at 803-217-4444.

Life Insurance

Under the terms and conditions of the life insurance plan SEG has with The Standard Life Insurance Company, when you turn age 65, your amount of insurance is reduced by 35%. This includes basic and supplemental life and AD&D insurance. As an active employee, this reduction will apply January 1 of the year following your 65th birthday. You may choose to convert the amount of coverage you are losing to an individual policy. Contact The Standard at 800-628-8600 for more information and rates.

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