Follow these steps if you plan to delay Medicare while you work past the age of 65:
You may want to delay enrolling in Medicare if you or your spouse are still working, and you have health insurance through that employer. This may be a good choice if you’re happy with your current health insurance and it meets requirements for delaying Medicare without penalty. To delay Medicare, your health plan must:
- Be based on you or your spouse actively working (COBRA or retiree coverage won’t count).
- Be through an employer with 20 or more employees.
- Have prescription drug coverage that’s considered “creditable coverage” for Medicare.
If your employer or union plan meets these requirements and you plan to stay on it past 65, follow the steps below to ensure a smooth transition to Medicare later.
Before you turn 65:
Check in with your employer. Let the employer’s benefits administrator know you’re planning to stay on their coverage after you turn 65. Ask them to confirm in writing that their health plan:
- Counts as group health plan coverage.
- Will continue to fully cover you, even if you don’t enroll in Medicare Part A or Part B.
- Has prescription drug coverage that’s “creditable” for Medicare.
If your employer plan doesn’t meet these standards, don’t delay your enrollment in Medicare. Delaying Medicare could mean paying lifetime late enrollment penalties, or having a gap in your health coverage. Instead, sign up during your Initial Enrollment Period when you turn 65. Learn about the rules around when to sign up for Medicare.
When you turn 65:
Consider signing up for just Part A. Even if it’s not required by your employer-sponsored plan, you may want to sign up for Part A (hospital coverage). If you’ve paid enough quarters of Medicare taxes, you’ll get the extra coverage Part A offers without any monthly premium cost.
However, if contributing to an HSA is an important part of your retirement strategy, consider delaying Part A for now. You’ll need to stop your HSA contributions at least 6 months before applying for Part A coverage.
Keep your letters about creditable coverage. Your insurance company should send you a letter each year, confirming your plan has creditable drug coverage for Medicare. Make sure to save these letters. You may need them when you enroll in Part D prescription drug coverage later.
At least 1 month before your employer plan ends:
Sign up for Part B. If you haven’t enrolled in Part A yet, you’ll sign up for both parts now. To avoid a gap in coverage and the risk of paying a late enrollment penalty, sign up at least 1 month before your employer coverage ends. As part of your application for Part B, you’ll need your employer to help you fill out a form(CMS L564), confirming you’ve had coverage through them.
Look into your options for additional coverage. Once your Medicare application is approved, you can enroll in additional coverage. This could include a Medicare Advantage plan, or a Medicare Supplement (Medigap) plan paired with Part D prescription drug coverage.
Reach out to us for guidance!