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Becoming eligible for Medicare

Medicare is the U.S. health insurance program for people age 65 or older and younger people with disabilities. 

Generally, other than stopping your Health Savings Account (HSA) contributions as noted below, you don’t need to do anything when you become eligible for Medicare while you are still working. There is no change to your DXC benefits (other than the HSA), and you do not need to sign up for Medicare.

If you are receiving Social Security or Retirement Railroad Board benefits, you are enrolled automatically in Medicare Parts A and B when you turn 65.

Once your DXC medical coverage ends (typically when you retire), you must enroll in Medicare within eight months of the date your DXC coverage ends to avoid late enrollment penalties.

See below for details. Also refer to the Medicare Journey tool for steps you should take as you approach age 65.

  • Due to IRS rules, you must stop your HSA contributions at least six months before Medicare begins to avoid a tax penalty. As a reminder, an HSA (Health Savings Account) is a tax-advantaged account available to eligible employees enrolled in High Deductible Health Plan options through DXC (the Bronze, Bronze Plus or Silver coverage levels).
    • Once you enroll in Medicare (Part A and/or B) — including when you are automatically enrolled at age 65 if you are receiving Social Security or Railroad Retirement Board benefits — you are no longer allowed to contribute to an HSA, and you cannot receive employer contributions either (such as DXC’s wellness incentives).
    • You must stop contributing to your HSA at least six months before your Medicare enrollment. This is because Medicare Part A provides up to six months of retroactive coverage. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.
    • To stop contributing to your HSA, log in to your DXC Benefits Center account, select the Life Events menu at the top of the homepage and follow the prompts to update your election. The change is made prospectively and will not take effect until the following month.
    • You may continue to withdraw tax-free money from your HSA after you enroll in Medicare to help pay for qualified medical expenses.
    • DXC cannot provide guidance about how much money to put into your HSA or how to use your HSA.
    • Review IRS Publication 969 for details and discuss your personal situation with your tax advisor.
  • There are four types of Medicare coverage or “parts” of Medicare.
    • Medicare Part A provides coverage while you are in a hospital, skilled nursing facility or other medical institution. 
    • Medicare Part B provides coverage for outpatient medical and preventive care.
    • Medicare Part C. Medicare Part C is Medicare Advantage, which is provided through Medicare-approved private health plans. These plans includes Part A and Part B coverage plus additional coverage.
    • Medicare Part D provides prescription drug coverage.
  • Before you make any benefits decisions related to Medicare, make sure you understand the following:
    • For most people there is no monthly premium cost for Medicare Part A coverage. The other parts of Medicare do have monthly premium costs. 
    • If you are still working, you can have both Medicare and DXC medical coverage (except for HSA contributions as noted above). If you choose both, the DXC plans pay first (primary payer) and Medicare pays second (secondary payer) while you are actively employed.
    • If you choose Medicare and COBRA coverage (e.g., after you retire), Medicare provides pays first (primary payer) and your COBRA plan pays second (secondary coverage).
    • The DXC medical plans provide comprehensive prescription drug coverage that is considered by Medicare to be “creditable coverage.” Refer to the Medicare Notice of Creditable Coverage (NOCC).
    • There is no financial penalty for delaying Medicare coverage as long as you have DXC medical coverage. When you retire from DXC (or when your DXC medical coverage otherwise ends), you are entitled to a Special Enrollment Period to sign up for Medicare before or within 8 months of the end of your DXC coverage to avoid a late enrollment penalty (even if you choose COBRA coverage).
  • If you decide to enroll in Medicare:
    • If you want to enroll Medicare coverage while you are still working, you must do so within 3 months of your 65th birthday. Enroll in Medicare through the Social Security Administration website.
    • You can dis-enroll from DXC health care coverage for yourself and any dependents within 30 days of the date your Medicare coverage starts (except for HSA contributions which must stop six months before Medicare begins as noted above). Log in to your DXC Benefits Center account and select the Life Events menu at the top of the homepage.
    • If you dis-enroll from your DXC medical coverage, you can elect COBRA coverage for any currently covered dependents, including your spouse/domestic partner, who are not yet eligible for Medicare.
    • If you need a CMS – L564 form completed for your Medicare enrollment, log in to Employee Connect and search for article KB0020814 DXC/US: Medicare Form Completion Support.  
  • If you decide to delay Medicare enrollment:
    • If you want to delay Medicare enrollment while you have DXC medical coverage as an active employee, you don’t need to provide notice to DXC or to the Social Security Administration.
    • If you are receiving Social Security benefits or Railroad Retirement Board benefits, you are enrolled automatically in Medicare Parts A and B when you turn 65. You cannot delay Part A — by law, if you receive Social Security benefits and are eligible for Medicare, you must also have Medicare Part A (and you must stop your HSA contributions six months before Medicare Part A coverage begins as noted above). You can delay Part B by notifying the Social Security Administration. 
    • When you eventually retire from DXC, you must enroll in Medicare within eight months to avoid late enrollment penalties.
  • DXC cannot advise you on what to do about your Medicare enrollment. Please access these resources for support in making your decisions:
    • For guidance specific to your situation, use the Medicare Interactive website.
    • For questions about enrolling in Medicare, visit Medicare.gov, call 800.633.4227 (TTY: 877.486.2048) or live chat online.
    • For decision support, you can access Alight Retiree Health Solutions — log in to their site, join their Manage Medicare Like a Pro webinar or call 800.350.1470. 
    • Explore Medicare-related articles, guides, podcasts, and webinars available in the Caregiver and Parent Supports program through Torchlight.
    • To connect with a consultant who can answer questions about Medicare and direct you to legal and financial resources, log in to the LifeManagement Employee Assistance Program (EAP) website or call 888.696.4272 .
    • If you have questions about your DXC benefits, call the DXC Benefits Center at 888.305.5499.
    • If you have questions about your specific DXC coverage or want to learn about the Medicare options available through certain carriers, contact the carrier directly.

If you haven’t already, refer to the Medicare Journey tool for steps you should take as you approach age 65.

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