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Medicare When Working Past Age 65 | Kentucky Health Solutions

Medicare When Working Past Age 65

May 3, 2024 Pete Alberti Comments Off

You first become eligible to enroll in Medicare around age 65. But if you plan to keep working or have employer health coverage through a spouse, you have some options to consider before signing up for Medicare. Here you’ll find the resources and tools you need to help learn about your Medicare enrollment options, and to make confident decisions about getting or delaying Medicare coverage.

If an employer has 20 or more employees, generally you can choose to delay Medicare enrollment, drop your employer coverage for Medicare, or have both Medicare and employer coverage.

If an employer has fewer than 20 employees, generally you will need to enroll in Medicare during your Initial Enrollment Period.

If you have health coverage through a spouse’s employer, what you can do will depend on the employer’s rules. You may be able to delay or you may need to enroll at age 65.

Delaying Medicare when working past 65

Even if you plan to keep working, you still have a 7-month Initial Enrollment Period (IEP) when you turn 65.

Delaying Medicare Part A and B

If you qualify to delay both Medicare Parts A & B, you can do so without penalty as long as you enroll within eight months of either losing your (or your spouse’s) employer coverage or ceasing to work, whichever comes first. You will enroll during a Special Enrollment Period and will need to also provide written proof of creditable drug coverage to avoid Part D penalties.

Enrolling only in Part A

Medicare Part A is usually premium-free for most people, so you could opt to enroll in only Part A while still working. However, if you have a health savings account (HSA), be aware that once you enroll in any part of Medicare you cannot continue to make contributions to your HSA.

You may want to delay Part A if you have an HSA and want to continue contributing to it. If you decide to get Medicare coverage and stop contributing your HSA, you can continue to use the funds for qualified medical expenses — including some Medicare costs.

Enrolling in Part B

Medicare Part B charges a premium. Some people who work past 65 and have employer coverage delay enrolling in Part B just to postpone paying the premium and then sign up later during a Special Enrollment Period. If you don’t qualify for a Special Enrollment Period, even if you’re still going to work past 65, you need to get Part B during your Initial Enrollment Period to avoid financial penalties.

Having creditable drug coverage

Before you officially delay Medicare, make sure you have creditable drug coverage. This means your employer drug coverage is at least as good as the standard Medicare Part D plan coverage. If your employer’s drug coverage isn’t creditable, you will need to enroll in a Part D plan during your Initial Enrollment Period to avoid the Part D late enrollment penalty. Consequently, you’ll also need to get either Part A or Part B in order to get a Part D plan.

Sourced: UHC.com

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