I’m 65 and still working. Am I forced to sign up for Medicare?

Today, more Americans are working past the age of 65.  This adds confusion to seniors as they still may be working and covered under their employer’s health coverage.  If you are turning 65 soon, but plan on continuing to work as a valuable member to the workforce, keep reading. 

How big is your Company?

The size of your current employer will determine if you are required to sign up for Medicare, regardless of your wishes.  Under current Medicare Rules (found at Medicare.gov), if your employer has 20 or more employees, you do NOT have to enroll in Medicare.  Your group plan that you are a member of is the primary payer for your healthcare.  You can delay your enrollment into Medicare until you retire and actively stop working. 

However, if you work for a smaller company that has fewer than 20 employees, you are required to sign up for Medicare as soon as you are eligible. If you don’t sign-up and rely on your group plan to pay your heath bills, you may be disappointed.  Since you are required to sign up for Medicare, the group plan can refuse to pay your claims.  In addition, if you sign up for Medicare late, you’ll be faced with late enrollment penalties. 

However, if you work for a large company with greater than 20 employees, you still have the option to sign up for Medicare and drop your employer coverage.  To make that decision, it is critical that you compare the costs, coverages, and plans to determine which is the best option for you. 

If you choose to remain covered by your large employer’s group plan, you will have a special enrollment period after you retire.  You can sign up for Medicare without penalty during that period. 

COBRA?

COBRA covers health benefits for up to 18 months after you leave your job.   Medicare will be the primary payer for your insurance benefits.  Even if you are on COBRA, you need to sign up for Medicare as soon as you are eligible.  Missing your enrollment into Medicare while you are still working or on COBRA can result in penalties and delayed coverage.

What is my timeline?

Your initial enrollment period starts three months before the month you turn 65 and extends three months after your birthday month. During that seven-month period, you can sign up for Medicare  (Part A and B) online at the Social Security Administration website (www.ssa.gov). You can also visit your local Social Security office.

Some folks only sign up for Part A and delay Part B while working.  Medicare Part A can supplement your hospital coverage through your group insurance at your employer and won’t cost you a thing. You can add Part B later during your special enrollment period after you retire or leave your job.

You also have the option of enrolling in a Part D prescription drug plan.  We can help you determine if your group plan is “creditable” coverage.  If not, you will need to enroll in Part D to avoid late enrollment penalties.   

Whatever you’re considering, it’s very important to talk to your employer’s Human Resources department.  Your benefits could change if you enroll in Medicare while working.  They will be able to guide you on the employer’s plan and how it is impacted by Medicare. 

We can help you compare the cost of your employer coverage against the cost of Medicare as primary coverage. You’ll get free guidance on which route will be most cost-effective. Contact us today!

Recap

• If you are actively working for an employer with 20+ employees, you are NOT required to sign up for Medicare at 65.

• If you work for a small employer with fewer than 20 employees, you ARE required to sign up for Medicare at 65.

• If you have retiree insurance or COBRA at 65, you ARE required to sign up for Medicare at 65.