Just because you’re turning 65 doesn’t mean you’re ready to retire. In fact, many people today are working well into their late 60s—and beyond.
But reaching age 65 brings one unavoidable topic to the table: Medicare.
Whether you plan to continue working full-time, shift into part-time, or retire gradually, understanding how Medicare interacts with your employer health insurance is crucial to avoid penalties, gaps in coverage, and unnecessary expenses.
Who Needs to Enroll?
The answer depends on your work status and the size of your employer:
– 20 or more employees: Your group plan remains primary. You may delay Part B without a penalty.
– Fewer than 20 employees: Medicare becomes primary. You should enroll in Part B when first eligible.
Even if you’re planning to delay full Medicare enrollment, it’s often recommended to enroll in Part A since it’s typically premium-free and provides hospital coverage.
Understanding Coordination of Benefits
If both Medicare and your employer insurance are active, coordination of benefits rules determine who pays first. Getting this wrong can lead to surprise bills or uncovered services. It’s essential to review your plan details and talk to your HR department or benefits manager.
Should I Delay Medicare?
Reasons you might delay Medicare Part B:
– Your employer plan is cheaper or provides better coverage
– You don’t want to pay extra premiums if your employer plan is sufficient
Reasons you might not delay:
– Your employer coverage has high deductibles or limited provider access
– You’re unsure how long you’ll stay employed
Did You Know?
If you delay Part B without having qualified employer insurance, you may face a 10% penalty for every 12 months you go without coverage. That penalty stays with you for life.
Retiring Soon?
Start planning your Medicare transition at least 3–6 months before you leave your job. This allows you time to:
– Compare plans
– Ensure no gap between employer and Medicare coverage
– Set up Part D (drug coverage) if needed
What to Ask Your Benefits Manager
– Will my employer plan end when I turn 65?
– Do I need Medicare as secondary coverage?
– What’s the cost difference if I switch to Medicare?
Call to Action
Call us at (201) 637-5274 for a free consultation. We’ll help you compare your employer coverage to Medicare and build a strategy that works.
