Working at Age 65 and Medicare
You are generally eligible for Medicare at age 65, with an enrollment window leading up to your 65th birthday. This enrollment opportunity begins three months prior to your birthday month and ends three months afterwards. Signing up for Medicare on time can help you avoid penalties.
If you are still working at age 65, you have a little bit of “wiggle room” when it comes to signing up for Medicare. If you have group coverage through an employer, you may wait about signing up. As long as your employer has twenty or more employees on the policy, you can delay signing up for Medicare.
There are two parts to Medicare, Part A and Part B. Medicare Part A is free. Since it is free, it would be wise to sign up on time for Part A. It doesn’t cost you anything and can serve as your secondary insurance in some cases. If you continue to work and keep employer sponsored insurance, you can sign up for Medicare Part A only.
Medicare Part B is not free. You will have a monthly cost if you enroll in Medicare Part B. You can avoid paying Part B premiums if you are covered under your employer’s group plan. You would simply defer Medicare Part B. Once you retire or loose group coverage, you have an eight month period of time to sign up for Medicare Part B.
Your Medicare Special Enrollment Period
If your employer has at least 20 employees covered under their plan, you can delay your enrollment in Medicare Part B. As stated earlier, this allows you to avoid the Part B premium. Currently for 2023, most individuals premium cost for Part B is $164.90 monthly. Some Medicare beneficiaries pay more for Part B due to their income. Delaying (Deferring) your Part B would save you approximately $2,000 or more annually.
You will get an eight-month special enrollment period to sign up for Medicare Part B if and when you leave your job or your employer stops offering coverage. It will start the month after you separate from your employer, or the month after your group health coverage ends – whichever happens sooner.
Sign up during those eight months, and you won’t have to worry about a late penalty. What if you are eligible to start Medicare and you are covered on your spouse’s employer’s plan? The eight-month special enrollment period is also available to you. You could delay your Part B enrollment. This is because you’re covered through your spouse’s employer-sponsored plan. You may also answer a few questions on Medicare’s website to give you a better understanding of your coverage options. Simply click HERE!
Run the Numbers
You don’t have to enroll in both Medicare Part A and Medicare Part B at age 65 if you have coverage through your employer’s plan. Sometimes doing so makes sense. It would be wise for you to compare your two options. We recommend comparing your premiums and benefits with employer sponsored insurance coverage verses your benefits and costs with Medicare Part A and Medicare Part B.
If you have any questions concerning your current coverage, please give us a call. Our Belmont office number is 662-454-9800 and our Tupelo office number is 662-269-8833. You make also call Toll Free at 1-877-756-9005. Be sure to check the supplements overview page: Medicare Supplements, or if you prefer to view a holistic side-by-side Medigap plan overview head over to the Medicare site by clicking HERE!