Working Beyond 65 — What Should I Know About Medicare?
Turning 65 doesn’t necessarily mean you have to stop working or immediately change your health coverage. If you or your spouse are still working and you have employer coverage, your Medicare decisions may depend on how that coverage works. Understanding the rules before making changes can help you avoid coverage gaps, unnecessary costs or possible late-enrollment penalties.
Understand Your Current Coverage
Start by identifying exactly where your health coverage comes from. Is it based on your current employment, your spouse's current employment, retiree coverage, COBRA or another source? These situations may be treated differently under Medicare enrollment rules.
Understand How Medicare Coordinates
Employer size and the type of coverage can affect whether the employer plan or Medicare generally pays first. Before delaying or enrolling in Part B, understand how your current coverage coordinates with Medicare and confirm the rules with your employer benefits administrator and official Medicare information.
Plan Your Next Transition
If you expect to retire or lose employer coverage later, learn what you will need to do before that coverage ends. Knowing your dates, Medicare enrollment requirements and prescription drug coverage status ahead of time can make the transition easier.
Things Worth Knowing
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Being eligible for Medicare at 65 does not always mean you must immediately enroll in every part of Medicare. Your circumstances and current coverage matter.
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Coverage based on current employment can be treated differently from COBRA or retiree health coverage for Medicare enrollment purposes.
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Employer size can affect how employer coverage coordinates with Medicare and which coverage generally pays first.
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If you delay Medicare Part B because of current employer coverage, understand the rules for qualifying for a Special Enrollment Period when that employment or coverage ends.
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If you have a Health Savings Account (HSA), Medicare enrollment can affect your ability to continue making HSA contributions. Medicare enrollment timing should be considered before making additional contributions.
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Ask whether your employer prescription drug coverage is considered creditable coverage for Medicare Part D purposes and keep documentation of that status.
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If your spouse or dependents receive health coverage through your employment, understand what will happen to their coverage when you eventually retire.
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Medicare rules vary by situation. Before delaying enrollment or changing employer coverage, verify important dates and requirements with your employer benefits administrator, Social Security and Medicare.