Medicare Options for People Working Past 65

As people near age 65, many begin thinking about Medicare and how it fits into their health coverage. If they plan to work past 65, as an increasing number of Americans are doing, the decision to enroll can be more complex.  

If you plan to continue working past 65, you may be wondering what will happen to your health coverage. The answer depends on your individual situation and the size of your employer. If you’re approaching Medicare eligibility, understanding your options is key to staying protected and avoiding unnecessary costs.

Understanding Medicare and employer coverage after 65

Medicare is designed to help cover health care costs as you age or if you are under 65 and have a disability. Once you become eligible, you may have to enroll if you have not enrolled in Social Security – so it’s good to know how that process works and what steps you may still need to take.

Once enrolled in Medicare, your red, white, and blue card will arrive in the mail about three months before your 65th birthday or your 25th month of disability benefits. In most cases, Medicare Part A⁠ is premium-free, as long as you or your spouse have worked 40 quarters and contributed to FICA (Federal Insurance Contributions Act) so you’re already covered for hospital, skilled nursing, home health care, and hospice insurance. 

But don’t forget – you’ll still need to sign up for Medicare Part B to get medical coverage. And if you don’t have prescription drug coverage in place, delaying enrollment in Part B⁠ or Medicare Part D⁠ could result in late penalties.

Medicare Part B enrollment

If you’re still employed or have coverage through your spouse’s health plan, you may have options for delaying enrollment into Part B.

• If your employer has 20 or more employees: You may be able to delay enrolling in Part B and stick with your current health plan. Or you can combine both, using Original Medicare⁠ as secondary coverage.

• If your employer has fewer than 20 employees: You’ll need to enroll in Part A and Part B when you turn 65. This is because Medicare becomes your primary insurer, and delaying could leave you without coverage or reduced benefits.

• If you’re covered through your spouse’s employer: Your choices depend on the rules of that health plan. Some allow you to delay Part B enrollment, while others require you to enroll at 65.

Part B late enrollment penalties⁠ are added to your monthly premium and charged each month for as long as you have coverage. These penalties increase until you sign up, so understanding your current coverage can help you make the right choice about when to enroll in Medicare. 

Medicare Part D enrollment

You may be able to delay enrollment without penalty into Part D if your current prescription drug coverage is considered creditable, meaning it pays about as much of your out-of-pocket prescription costs as Medicare. Employer and other types of group health plans are required to send a Notice of Creditable Coverage⁠ to all Medicare-eligible employees each September. 

Ready to take the next step?

Working past 65 opens the door to new opportunities – and important decisions about your health coverage. Whether you stick with employer insurance, transition to the many Medicare options, or combine the coverages, knowing your options helps you stay covered and confident.

Connect with us to explore the best path for your situation. Let’s work together to make your Medicare decisions simple and stress-free.