Medicare and Working Past 65: What You Need to Know

More people are working past age 65 than ever before, and that raises an important question: what happens with Medicare if you're still employed? The answer depends largely on the size of your employer and the coverage you already have.

If you have coverage through a larger employer. If you or your spouse are still working and you have health insurance through an employer with 20 or more employees, you may be able to delay enrolling in Part B without a late penalty. In this situation, your employer coverage generally pays first and Medicare pays second. Many people in this position still enroll in premium-free Part A because it usually has no cost.

If you work for a smaller employer. If your employer has fewer than 20 employees, Medicare typically pays first. In that case, it's usually important to enroll in Part B when you're first eligible, because delaying could leave gaps in your coverage. Check with your employer's benefits administrator to understand how your plan works with Medicare.

Avoiding the Part B late penalty. If you delay Part B because you have qualifying employer coverage, you'll generally get a Special Enrollment Period to sign up when that coverage ends, usually up to eight months, without a late penalty. If you don't have qualifying coverage and delay, you may face a premium penalty that lasts for as long as you have Part B.

A note on Health Savings Accounts (HSAs). Once you enroll in any part of Medicare, you can no longer contribute to an HSA. If you're contributing to an HSA and plan to keep doing so, this is an important factor to weigh before enrolling.

Prescription drug coverage. If your employer coverage includes creditable prescription drug coverage, you can usually delay Part D without penalty. Keep the notice your employer sends about whether your drug coverage is creditable, since you may need it later.

Deciding when to enroll while still working can be one of the trickier parts of Medicare. Reviewing your specific employer coverage before you turn 65 can help you avoid penalties and coverage gaps.

Source: Medicare.gov

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.