Medicare For Individuals Working Past 65

As more Americans continue to work past the age of 65, it is important to understand the ins and outs of Medicare coverage. Medicare is a federal health insurance program primarily intended for people 65 years or older. However, those who are still working past the age of 65 have the option to enroll in Medicare as well. This blog post will give you everything you need to know about Medicare for individuals over 65.

When  To Enroll?

Individuals who are working past the age of 65 can enroll in Medicare during the Initial Enrollment Period (IEP), which starts three months before your 65th birthday and ends three months after your 65th birthday. If you miss your IEP, you can enroll during the General Enrollment Period (GEP) from January 1st to March 31st each year. However, if you miss your IEP and don't enroll during the GEP, you may have to pay a late enrollment penalty.

However, there are different rules of enrollment if you a working Past 65 and have creditable coverage. In that case, you can delay Part B enrollment without penalty. Delaying Part B can be a smart decision whilst we don’t recommend delaying Part B enrollment. The reasons are explained below,

Part A Guidance for Enrollment 

If you plan to work past 65 and plan to remain on your group health coverage, we recommend that most individuals working past 65 sign up for Medicare Part A (inpatient hospital coverage) when they first turn 65. There are a couple of reasons for this:

• Signing up for Medicare Part A puts you into the Medicare system making it easier to sign up for other pieces in the future.

• It generates your Medicare number which is a crucial piece of information needed to enroll in additional coverage.

• Provides you with secondary hospital coverage, although for most individuals, Part A will likely only come into play if in a situation where hospice is required.

Part A is typical $0/month as long as you’ve paid 40 quarters (10 years) into Medicare taxes. If your company has over 20 employees, Medicare Part A will act as secondary coverage to your group health plan.

The only time we do not recommend an individual to sign up for part A is if you have an HSA(health savings account). This is because if you sign up for part A, part A will prohibit you from contributing to your HSA. Another thing to watch out for is when you decide to enroll in Medicare down the road, please stop contributing to your HSA 6 months before Medicare enrollment, otherwise, you will have to pay taxes on any HSA contribution in those 6 months.

Part B Guidance for Enrollment 

If you plan on working past 65 and keeping your group health insurance, we usually don’t recommend signing up for Medicare Part B simply because it’s an added monthly premium. If you earn a higher income you will most likely pay even more for Part B due to Medicare income surcharges.

You will avoid late enrollment penalties as long as you remain an active employee and are covered by the group health plan. These same rules apply if you are covered under a spouse's employer plan.

Once you have decided to retire, you have an 8-month window during a Special Enrollment period after your employer coverage ends to sign up for Medicare Part B. You can also sign up 3 months before retirement to time Medicare to start as soon as the group coverage ends. During this time, you can also sign up for available Medicare Supplement, Part D, and Advantage plans. Please note Medicare only ever starts on the first of the month.

Please note that this is only recommendable if you working in a company that has more than 20 employees. If you work in a company that has less than 20 employees, we recommend enrolling in Part B when you are first eligible because then Medicare will pay first, and our employer health insurance pays second.
So, in other words, if you are still working and have employer-sponsored health insurance, you can delay enrolling in Medicare without penalty. However, if your employer has less than 20 employees, Medicare will become your primary insurance once you turn 65, and you will need to enroll in Medicare Part A and B during your IEP.

What Are Your Options if You Are Still Working and Have Medicare?

You have a few options to consider if you are working past 65 and are eligible for Medicare coverage. Let’s break them down:

• Keep your employer-sponsored health insurance and delay enrolling in Medicare Part B: If your employer-sponsored health insurance provides adequate coverage, you can delay enrolling in Medicare Part B without penalty. However, you should enroll in Medicare Part A, as it is generally free.

•  Enroll in Medicare Part A and delay enrolling in Medicare Part B: If your employer-sponsored health insurance provides adequate coverage, you can enroll in Medicare Part A without penalty and delay enrolling in Medicare Part B until you retire or lose your employer-sponsored health insurance.

•  Enroll in both Medicare Part A and Part B: If your employer-sponsored health insurance does not provide adequate coverage, you can enroll in both Medicare Part A and Part B. However, you will have to pay the monthly premium for Part B.

•  Enroll in a Medicare Advantage plan: If you are still working and have Medicare, you can choose to enroll in a Medicare Advantage plan instead of Original Medicare (Part A and Part B). Medicare Advantage plans often provide additional benefits such as dental, vision, and hearing.

What If I Receive Social Security Benefits But Want to Delay Part B?

Upon reaching 65, you will be automatically enrolled in Original Medicare, consisting of Parts A and B. Once enrolled, your Medicare card will be delivered to your mailbox, and your coverage will commence on the first day of your birthday month. However, if you possess other credible coverage, you may postpone Part B and the corresponding premium payments. In such a scenario, you can sign up for Part B within eight months of the termination of your other coverage without incurring any penalty. Nevertheless, if you are ineligible to delay Part B, you must enroll during your Initial Enrollment Period to avoid facing a penalty. If you possess credible coverage, you can refuse Part B without any penalty, but it must be done before the start date of your coverage. The back of your Medicare card provides instructions on rejecting Part B if necessary.