Working Past 65 with Medicare in Brick, NJ

When you have health coverage through a current job, you may be able to wait to sign up for Part B without a late penalty. If you do it correctly, you get a Special Enrollment Period later, once the job coverage ends. Medicare.gov describes these rules in its guide to joining Medicare.

The rule that matters most is employer size. It decides which plan pays first, Medicare or your employer.

In general, your employer plan pays first and Medicare pays second. You may delay Part B without a penalty as long as you or your spouse is working and covered by that plan. Part A usually has no premium, so many people take it anyway.

When the job ends, you have an eight-month Special Enrollment Period to sign up for Part B. Keep proof of your coverage, such as a letter from your employer, because Social Security may ask for it.

In many cases, Medicare pays first and the employer plan pays second. That means skipping Part B can leave you with large bills that the job plan will not cover. Ask your benefits office in writing which plan pays first.

Do not rely on a verbal answer. Get the rule on paper, then compare it with Medicare's guidance before you decide.

COBRA and retiree health plans do not give you the same protection as current job coverage. If you rely on them instead of signing up for Part B on time, you may owe a late penalty. The penalty adds 10% to your Part B premium for each full 12 months you could have had Part B and did not.

Plan ahead before your job coverage ends. Sign up for Part B before, or right after, the last day of work to avoid a gap.

If you contribute to a Health Savings Account, you generally must stop before Medicare begins. Part A can reach back up to six months when you sign up after 65, so stop contributions earlier than you think. A tax adviser can help you with timing.

Your job plan may include drug coverage. Ask whether it is "creditable," which means it is at least as good as Medicare's. If it is, you can delay Part D without a penalty.

If it is not, delaying may cost you. See Part D.

Make a short plan for the month your job ends. Call your benefits office, confirm your last coverage date, and then sign up for Part B.

Pick a Medigap plan or Advantage plan so there is no gap. Our retirement planning page gives a fuller checklist.

This page is part of the Getting Started library, inside our Medicare insurance guide for Brick, NJ. Related pages:

Unfamiliar word? Check the Medicare glossary.

Share your employer size and plan details with an insurance professional. They can explain how Medicare may fit with your job coverage, and you decide what to do.