Medicare Coverage If You’re Still Working at Age 65

If you are approaching 65 and still working, you’re certainly not alone. According to the U.S. Bureau of Labor Statistics, the number of workers age 65 and older jumped more than 155% over the past 20 years.

What to Know About Medicare Advantage as You Approach 65

When it comes to signing up for Medicare, your wellness decisions may be different if you’re still working and covered by an employer health plan at age 65.*

When can you file for Medicare?

You become eligible for Medicare when you turn 65. However, you can sign up three months before the month of your 65th birthday, and for up to three months after your birth month. If you sign up after your birth month, Medicare benefits are retroactive dating back to your 65th birthday.

Whether you need Medicare at 65 while you’re working may depend on the size of your employer.

• If you work for a company with 20 or more employees, your employer health plan usually remains your primary insurance. In many cases, you can delay Medicare Part B without paying a late enrollment penalty later. Medicare Part A is typically premium-free if you paid Medicare taxes while working.
• If your employer has fewer than 20 employees, Medicare and Medicare Advantage may become your primary coverage once you turn 65. That means you could need to enroll in Medicare coverage gaps or future penalties.
• Some people keep their employer insurance while also enrolling in Medicare. Others decide to leave their workplace plan and move fully to Medicare. The right choice depends on your healthcare needs, prescription costs and employer benefits.

Health Savings Accounts and Medicare

If you have a Health Savings Account (HSA) through employer health coverage, then timing matters more. Once you enroll in any part of Medicare, you can no longer contribute to your HSA.

If you want to keep making HSA contributions while working, you may choose to delay Medicare Advantage enrollment. Because tax rules can be complex, it’s wise to speak with a financial advisor before deciding.

Do you need a Medicare Advantage insurance broker?

Signing up for Medicare is not a last-minute decision. Begin reviewing your Medicare options about six months before turning 65. If you plan to keep working, compare your employer coverage with Medicare costs and benefits to see which option makes the most sense for your situation. Be sure to consider your current and future health needs.

You can consult a broker who can help weigh your options and educate you about Original Medicare coverage (Parts A and B) and Medicare Advantage plans (Part C), which offer the benefits of Original Medicare and far beyond.

Understanding how Medicare works with your employer coverage can help you avoid penalties, protect your benefits and choose the coverage that fits your needs now and in retirement.

Contact Prominence Medicare for help

Call 866-747-8855 to join a health insurance plan during an enrollment period. Our provider network presently offers members access to quality medical services in Florida, Nevada and Texas.

Enroll online

* All benefits not available on all plans