Belleville, Illinois, Feb. 03, 2026 (GLOBE NEWSWIRE) — As employer-sponsored health plan costs continue to rise, employees and employers face mounting financial pressure. For workers approaching Medicare eligibility when turning 65, there are meaningful ways to lower costs and improve coverage. Tricia Blazier, J.D., senior director of Healthcare Insurance Services at Allsup, outlines practical steps to reduce out-of-pocket costs, keep trusted doctors and medications, and take advantage of plan extras.
Specialized healthcare assistance is available through Allsup Benefits Coordination, a service employers can offer their coverage groups to provide personalized, side-by-side comparisons of employer and retiree options. This support helps Medicare-eligible individuals align coverage decisions with real-world healthcare needs.
Rising premiums continue to strain household budgets and employer benefit plans. According to the Kaiser Family Foundation’s 2025 Employer Health Benefits Survey, the average annual premium for employer-sponsored family coverage reached $26,993 in 2025, a 6 percent increase from the prior year. Workers contributed an average of $6,850 toward those premiums.
“For employees nearing Medicare eligibility, rising premiums often prompt earlier conversations about coverage options,” Blazier said. “Medicare can offer more predictable costs, but enrollment timing and coordination rules are critical to avoid penalties or gaps in coverage.”
Medicare Options For Eligible Employees
For individuals approaching age 65, Medicare may provide a cost-effective alternative to employer-sponsored coverage once eligibility begins. Employees who delay Medicare enrollment because they have active employer coverage may qualify for a Special Enrollment Period after employment or group coverage ends. Enrolling during this window allows individuals to avoid late penalties.
Missing enrollment deadlines can result in permanent cost increases. The Medicare Part B late enrollment penalty generally adds 10 percent to monthly premiums for each 12-month period of delayed enrollment without creditable coverage.
Medicare prescription drug coverage under Part D may also offer more predictable cost sharing for some beneficiaries, including a $35 per month cap on insulin and no out-of-pocket cost for most adult vaccines covered under Part D.
Employer Considerations As Healthcare Costs Rise
As healthcare costs increase, employers may benefit from educating Medicare-eligible workers about eligibility rules, enrollment timelines and potential cost differences between employer-sponsored plans and Medicare options. Supporting informed transitions can help employees maintain appropriate coverage while easing pressure on group health plans.
Each Medicare enrollment season, Allsup supports thousands of Medicare-eligible individuals with coverage decisions. Learn more about Allsup Benefits Coordination at allsupllc.com.
For more information about healthcare benefits coordination, email [email protected] or call (866) 521-7655.
ABOUT ALLSUP
Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, disability financial solutions, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at Allsup Benefits Coordination Brings Expertise & Savings.
- Tricia Blazier, J.D., senior director of Healthcare Insurance Services at Allsup