Working Past 65? Check These 7 Things Before Delaying Part B
Still working when you turn 65?
You may be able to delay Medicare Part B without a late-enrollment penalty, but simply having health insurance through work does not automatically mean delaying Medicare is the right choice.
Before making that decision, answer these seven questions.
1. Is Your Coverage Based on Current Employment?
This is one of the most important distinctions.
Coverage through your own current employment or your spouse's current employment may allow you to delay Part B in certain situations.
COBRA, retiree insurance, and some other types of coverage do not necessarily provide the same Medicare enrollment protection.
Make sure you know exactly what type of insurance you have.
2. How Large Is the Employer?
Employer size can affect whether Medicare or the employer health plan generally pays first once you become eligible for Medicare.
That can have a significant effect on how your medical bills are processed.
Ask the employer's benefits department how the plan coordinates with Medicare when an employee or spouse turns 65.
3. Should You Enroll in Medicare Part A?
Many people consider enrolling in premium-free Part A while continuing to work.
However, this deserves additional attention if you or your employer are contributing to a Health Savings Account.
Once Medicare coverage begins, HSA contribution rules can change.
If you use an HSA, make Medicare enrollment timing part of the conversation before enrolling.
4. Is Your Prescription Coverage Creditable?
Medicare Part D has its own enrollment rules.
Ask your employer whether the prescription coverage is considered creditable coverage for Medicare Part D.
Employers generally provide a notice explaining this.
Keep that notice with your records.
5. When Will Your Employer Coverage Actually End?
Do not wait until your last day at work to start asking Medicare questions.
Find out:
- Your planned retirement date
- Your final day of employer medical coverage
- Whether coverage ends immediately or at the end of the month
- When you want Medicare to begin
Knowing those dates makes it much easier to avoid an unintended coverage gap.
6. Will COBRA Protect Your Medicare Enrollment Period?
This is an area where people can get into trouble.
COBRA may allow you to continue employer insurance, but it should not automatically be treated the same as coverage based on current employment when deciding whether to delay Medicare Part B.
If you are retiring and considering COBRA, review your Medicare enrollment timing before making that choice.
7. Do You Have Everything in Writing?
Keep good records.
Save items such as:
- Proof of employer coverage
- Coverage start and end dates
- Creditable prescription coverage notices
- Employer benefits information
- Medicare enrollment confirmations
- HSA contribution information
Good documentation can be extremely useful when you eventually transition from employer insurance to Medicare.
Don't Make the Decision Based on One Rule
There is no universal answer that says everyone working after 65 should enroll in Part B or everyone should delay it.
Your employment status, employer coverage, employer size, prescription benefits, HSA use, and retirement date can all affect the decision.
The best time to sort through those questions is before your Medicare enrollment deadline or retirement date arrives.
Read the Complete Working Past 65 Guide
I have a more detailed guide covering the questions to ask before delaying Medicare Part B.
Read the complete Working Past 65 Medicare guide:
https://shawnrayinsurance.com/working-past-65-medicare-part-b
If you would like to go through your Medicare timeline with me, you can schedule a time here:
Schedule a Medicare appointment:
https://shawnrayinsurance.com/calendar
A little planning before age 65 can make the eventual transition from employer insurance to Medicare much easier.
