What Happens if You’re Still Working at 65?

If you’ll be turning 65 in the near future, you’ve probably heard that you’re supposed to sign up for Medicare. But what if you’re still working full time, and that employer offers a group healthcare plan? You might be wondering whether you still need to sign up for Medicare, or if you have additional options.

Your instincts are correct. Because you are eligible for a group healthcare plan, you do indeed have some additional options available to you. To a large degree those options are determined by the size of your employer.

If your employer’s healthcare plan covers 20 employees or more, you aren’t required to sign up for Medicare. You can delay your enrollment in Medicare until you retire or are no longer enrolled in a group healthcare plan for any reason. You won’t be charged the usual penalty for late enrollment in Medicare, because you can provide proof that you did have coverage during that time.

However, you might opt to enroll in Medicare anyway. It costs nothing to enroll in Medicare Part A (hospitalization coverage) and Medicare will serve as secondary insurance. That means it will pick up the bill for hospital services not covered by your primary healthcare plan, potentially saving you a considerable amount of money.

If you choose, you can also sign up for Medicare Part B and drop your employer-provided healthcare plan. Some individuals choose this route when they compare the two plans, and decide that the coverage and/or premiums under Medicare are better for them than their old plan.

If your employer’s healthcare plan covers fewer than 20 employees, you do need to sign up for Medicare. In this case, Medicare Parts A and B will serve as your primary health insurance. If you fail to enroll, your employer’s plan might pay less for your care, or even nothing at all. You could also pay higher Part B premiums in the future if you’ve skipped your initial enrollment window.

If you’re facing this decision in the near future, give us a call. We can help you understand the options available to you, compare different Medicare plans, and enroll in the one that best suits your needs and preferences.