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Medicare and Working Past 65

PandaCare panda is working past 65More and more people are working past 65 and are waiting to enroll in Medicare while they continue in the workforce.

You first become eligible for Medicare 3 months before you turn 65. If you’re going to keep working or if you have health coverage through your spouse, you have some decisions to consider. Though continuing to work can help you save more for your retirement, you might be penalized for not enrolling in Medicare at the proper time. 

Do I need to sign up for Medicare if I am turning 65 and still working?

Older man at computerIf you’re still working at 65 and have coverage under an employer group health plan, and your employer has at least 20 employees, you don’t have to enroll in Medicare yet.

Is it possible to have Medicare AND employer health insurance?

Yes. Medicare and your group employer insurance will work together to make sure your healthcare needs and costs are covered!

Can my employer force me to switch to Medicare?

No. The Employee Retirement Income Security Act of 1974 (ERISA) mandates that people who work beyond age 65 must still be offered the same health insurance benefits as younger people working for the same employer. 

Woman at workBUT… ERISA only applies to companies with at least 20 employees. If your employer has fewer than 20 employees, you may have to enroll in Part B at 65.

How does working past 65 affect Medicare?

If you’ve worked at least 10 years and you paid Medicare taxes during that time, you will qualify for premium-free Medicare Part A. You’ll also automatically get enrolled at 65… even if you’re still working!

If you’re paying for some or all of your premium with that employer health plan, Medicare will probably save you money. If you use a lot of your deductible or regularly come close to meeting the annual out-of-pocket maximum, Medicare may save you a LOT.

Do I need Medicare Part B if I’m still working?

You may be required to get Medicare Part B even when still working. If you’re covered by a spouse’s employer, and the employer requires covered dependents to enroll in Medicare when they turn 65.

What happens to my Medicare if I go back to work?

If you’re going back to work and can get employer primary coverage, you can drop Medicare and re-enroll again later without any penalties. However, if you drop Medicare and don’t have creditable employer coverage, there will be penalties when you go back to Medicare.

If you have more questions, please reach out to us at PandaCare!

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