Citi Benefits Handbook
Coordination with Medicare
When you or your eligible dependents (other than your domestic partner or partner's eligible dependents) are eligible for Medicare and you are covered under the Citi Plan as an active employee, the Citi Plan continues to be the primary plan. The Citi Plan is primary for the following situations:
  • Eligible active employees age 65 and over who are eligible for Medicare;
  • Dependent spouses age 65 and over who participate in the Citi Plan on the basis of the current employment status of the employee and who are eligible for Medicare; and
  • For the first 30 months of Medicare entitlement, certain individuals who become eligible for Medicare on the basis of having end-stage renal disease (ESRD). After this initial 30-month period, the Citi Plan is secondary to Medicare.
Note: The Citi Plan will pay as secondary for your domestic partner who is eligible to enroll in Medicare, even if your domestic partner does not enroll in Medicare.
If you or a covered family member enrolls in Medicare after a COBRA election is made, COBRA coverage for that individual may end. If Medicare eligible, Medicare is the primary plan for a qualified beneficiary enrolled in COBRA.
Note: If you are enrolled in Medicare Part A or B, you are not eligible to make contributions to an HSA, if you are enrolled in a High Deductible Plan with HSA. Additionally, you ceased to be eligible for the Citi contribution as well. However, if you have an HSA with a remaining balance, you may use the funds to pay for eligible expenses even if you receive Medicare benefits.
If you are Medicare eligible, but do not enroll, you are permitted to make contributions to your HSA, as a participant in the High Deductible Plan with HSA. You may continue to contribute until the month after you enroll in Medicare. Please note: If you enroll in Medicare upon retiring after attaining age 65, if you are eligible for free Medicare Part A, which more than likely you are, you will have coverage that is retroactive up to six-month after you attain age 65. If you are making HSA contributions after attaining age 65, it is advisable to stop HSA contributions (including Citi contributions) six months before retiring. Due to the retroactive Medicare coverage, such contributions would be deemed ineligible, and would need to be refunded from your HSA by the time you file your tax return following the year of your retirement to avoid the excise taxes on the excess HSA contributions .
Medicare Part D provides prescription drug benefits and requires you to pay a separate monthly premium. As a participant in a Citi medical plan, you do not need to enroll for Medicare Part D coverage because the Citi prescription drug coverage is expected to pay out as much as the standard Medicare prescription drug coverage benefits ("creditable coverage"). As long as you have creditable coverage through the Citi medical plan, you will have a special enrollment period in which to enroll in Medicare Part D prescription drug coverage after your Citi prescription drug coverage ceases without penalty. Annually, you receive a "Notice of Creditable Coverage" from Citi which describes this process.
Delaying enrollment in Medicare beyond initial eligibility may result in the assessment of penalties or late fees in the following situations:
  • You or your dependent is eligible for Medicare and you are no longer an active employee (COBRA coverage is not considered coverage based on current employment);
  • You domestic partner is eligible for Medicare (even if you are still an active employee).