What Happens If I Work Past 65?

Most people sign up for Medicare at age 65, but nowadays more and more people are working for a few more years. Whether that is full-time or part-time, the more important question is how it affects your Medicare benefits and your eligibility to continue employer insurance.

Do I need to sign up for Medicare when I turn 65?

The answer is: it depends if you have "credible coverage" insurance through your employer and the number of employees. Generally, if you have insurance through your employer that covers medical and prescription drugs, then that is usually considered credible coverage and you can delay enrolling in Part B.

Many people still sign up for Medicare Part A hospital insurance because there is usually no monthly premium compared to Part B. By signing up for Part A at age 65, you will receive your Medicare card and Medicare number.

Please note: if you do not have credible coverage on or after age 65, then you could be at risk of a late enrollment penalty for Medicare Part B. Please refer to this page for more details on penalties: https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-late-enrollment-penalty

Why does the number of employees matter?

According to Medicare.gov, your situation is influenced by the number of workers at your job:

• "If you’re self-employed or have health insurance that’s not available to everyone at the company: Ask your insurance provider if your coverage is employer group health plan coverage (as defined by the IRS.) If it’s not, sign up for Medicare when you turn 65.

• If the employer has less than 20 employees: You might need to sign up for Medicare when you turn 65 so you don’t have gaps in your job-based health insurance. Check with the employer.

• If you have COBRA coverage: Sign up for Medicare when you turn 65 to avoid gaps in coverage and a monthly Part B late enrollment penalty. If you have COBRA before signing up for Medicare, your COBRA will probably end once you sign up."

Please refer to the link below on even more specific details regarding how your employer coverage works with Medicare:

https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/working-past-65

Do I also need to get Part D drug coverage for Medicare?

Similar to having "credible coverage" for medical, you'll also need to verify that your employer offers credible coverage through their insurance plan. If prescription coverage is not included, then you could probably join a Medicare drug plan. Thus, you would avoid any Part D late enrollment penalties.

What factors should I consider?

There are a variety of factors to keep in mind including but not limited to financial, health networks, and lifestyle.

• Financial factors to consider include monthly premiums, copays, maximum-out-of-pocket, co-insurance, and deductibles. Also, remember that Part B of Medicare has a monthly premium (usually starting at $170 for most beneficiaries for 2022).

• You should compare your health provider network of your current employer insurance to some Medicare plans offered in your zip code or county. There might be some differences that influence your decision on when to sign up for Medicare.

• Lifestyle questions to reflect on inlude: Do you have to work part-time or full-time to be eligible for your job's insurance ? Do you want to travel often? Is your under-age 65 spouse covered on your current insurance?

What do I do when I'm ready to enroll ?

As you can see, there are many unique Medicare situations and different paths to navigate when working past 65. The most complicated part is usually trying to determine what type of coverage is the best for your particular situation. That's where our team here at Exploring Medicare is happy to help.

We hope that by learning about Medicare and your options, we can build your trust to serve you in regards to your health insurance needs. We want to partner with you and your loved ones throughout your retirement journey.

Thank you for the opportunity to help you take these important steps for your health insurance. Please click below to schedule a free consultation:

Yes, I want to Explore Medicare !

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References:

U.S. Centers for Medicare and Medicaid Services, (2021).

https://www.medicare.gov

U.S. Social Security Administration, (2021). Medicare.

https://www.ssa.gov/medicare