Working Past 65: Do You Need Medicare?
Many Americans choose to continue working after age 65. If you plan to stay on your employer’s health insurance, you may be wondering whether you still need to enroll in Medicare.
The answer depends largely on the size of your employer and the type of coverage you have.
Working Past 65: Do You Need Medicare?
Many Americans choose to continue working after age 65. If you plan to stay on your employer’s health insurance, you may be wondering whether you still need to enroll in Medicare.
The answer depends largely on the size of your employer and the type of coverage you have.
Employer Size Matters
One of the most important factors is how many employees your company has.
Employers with 20 or More Employees
If your employer has 20 or more employees, your employer health plan is usually considered primary coverage.
In this situation, many people delay enrolling in Medicare Part B while they continue working and keep their employer coverage.
Employers with Fewer Than 20 Employees
If your employer has fewer than 20 employees, Medicare generally becomes the primary insurance once you turn 65.
This usually means you will need to enroll in Medicare Part A and Part B to avoid gaps in coverage.
Should You Enroll in Part A?
Many people choose to enroll in Medicare Part A at age 65 because it is often premium-free for those who worked and paid Medicare taxes.
However, there can be exceptions for people contributing to Health Savings Accounts (HSAs), so it’s important to review your situation before enrolling.
Avoiding Late Enrollment Penalties
If you delay Medicare because you are covered under an employer health plan, you may qualify for a Special Enrollment Period when that coverage ends.
This allows you to enroll in Medicare without paying a late penalty.
However, missing this enrollment window can result in permanent premium penalties, so timing is important.
Summary
If you plan to work past age 65, you may or may not need to enroll in Medicare right away. The decision usually depends on your employer size and the type of coverage you currently have.
Taking the time to review your options can help you avoid penalties and ensure you maintain the right coverage.
If you have questions about how Medicare works with your employer health insurance, schedule an appointment and we’ll be happy to help.
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