Is it better for a client with Marketplace coverage to transition to Medicare when they turn 65?

Clients who are currently enrolled in a Marketplace plan may be best served by ending that coverage and enrolling in Medicare once they turn 65, for several reasons.

1. Individuals who are eligible for premium-free Medicare Part A are no longer eligible to receive subsidies (such as premium tax credits and cost-sharing reductions) to help lower the cost of their Marketplace coverage. Medicare-eligible individuals who keep their Marketplace coverage and continue receiving subsidies, will have to repay them when they file a federal tax return for that year. 
2. Individuals who remain on Marketplace coverage and miss their Initial Enrollment Period for Medicare (for those turning 65, this is the seven month period centered around the month of their 65th birthday) may have to wait to enroll in Medicare coverage and pay a late enrollment penalty for Medicare Part B and Medicare Part D. 
3. For individuals not eligible for premium-free Medicare Part A (these could include clients who do not have requisite work history), it still may be a good idea to enroll in Medicare, but assisters should assess the specific circumstances, particularly if the client may be eligible for any Medicare Savings Programs that may provide assistance with Medicare premiums and reduce their out-of-pocket costs.

Keep in mind that once a client is enrolled in Medicare, it is illegal for anyone who knows a client has Medicare to sell them a Marketplace plan.