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
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
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
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
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.