The popular perception is that your 65th birthday marks the milestone in your life when you get to walk out of the office, kick back and reap the fruits of your labor as you enjoy sunsets from your porch. But, for some, that perception is a thing of the past.
Whether it’s for financial reasons or simply for enjoyment, nowadays, many workers continue employment past the age of 65. According to the Pew Research Center, in 2023, the number of Americans over 65 who said they were employed or looking for employment was 19 percent, which is nearly double that of 1988.
Regardless of why you may choose to work past 65, not enrolling in Medicare at the right time could result in financial penalties, so it’s essential to approach the decision to delay enrollment with caution and understanding.
Ask These Questions Before You Delay Medicare
Whether or not you can delay Medicare past 65 when you’re working depends on a few simple questions.
- Are you on an employer-sponsored health insurance plan?
- Does your employer have 20 or more employees?
- Is the coverage considered creditable?
If you answered “yes” to all the above, you likely qualify for a Medicare Special Enrollment Period and can delay enrolling without penalty. However, you should still talk to an advisor, such as your health insurance broker or your plan’s benefits administrator, to verify this information.
Get Answers to Other Medicare FAQs
What if I’m working past 65, but my health insurance is from my spouse’s employer?
If you’re over 65 and covered under your spouse’s employer’s health plan, the need to enroll in Medicare will vary based on the employer’s size. Employers with more than 20 employees typically allow you to delay Medicare enrollment without penalties, while those with fewer than 20 employees might require you to enroll in Medicare.
Regardless of the employer’s size, you should always confirm your specific situation with the employer-sponsored plan’s benefits administrator.
Why should I consider signing up for Medicare at 65?
If you meet any of the following conditions, you’ll likely need to enroll in Medicare during your Initial Enrollment Period to avoid late enrollment penalties:
- You’re not planning to continue working past age 65.
- You have coverage from an employer with fewer than 20 employees.
- Your spouse’s employer requires you to enroll in Medicare to stay on its sponsored health plan.
Your Initial Enrollment Period (IEP) spans seven months and includes the three months before, the month of, and the three months following your 65th birthday. For example, if your 65th birthday is on June 20, then your IEP starts on March 1 and ends on September 30.
Your IEP is the time to learn the specifics of your Medicare coverage options and to understand what you do (or don’t) need coverage for. Unless you qualify for a Special Enrollment Period (SEP), in order to avoid financial penalties, you’ll need to get Medicare Part A (hospital coverage), Part B (medical coverage) and some form of Part D (prescription drug coverage) when you’re first eligible. You can secure Part D coverage through a stand-alone prescription drug plan or a Medicare Advantage (also referred to as Part C) plan.
If you’re still working and have employer-sponsored health insurance, consult your benefits administrator before enrolling in Medicare to ensure that you understand your enrollment requirements and how Medicare coordinates with your existing plan.
How Social Security Benefits Can Affect Medicare Enrollment
If you’re receiving Social Security or Railroad Retirement Board benefits before the age of 65, you’ll automatically be enrolled in Medicare Parts A and B when you turn 65, even if you’re working.
Once you’re enrolled in Medicare, a Part B premium will be automatically deducted from your monthly benefit amount. If you don’t want Medicare Part B, you’ll need to notify the Social Security Administration that you’d like to opt out – the instructions to do so will be on the back of your Medicare card.
If you’re not receiving Social Security or Railroad Retirement Board benefits, you will need to enroll yourself in Medicare when you become eligible. The easiest way to do this is by visiting ssa.gov or medicare.gov to enroll online.
Know Your Options, Enroll on Time
When it comes to Medicare, don’t delay making decisions and enrolling in the coverage you need. If you need help learning about your choices and understanding the implications of your Medicare options, Higginbotham can help. Talk to one of our Medicare benefits specialists today to learn more.