Do I Need to Sign up for Medicare If I Am Working Even at 65?

Medicare for Old People

By the time most senior citizens clock 65, they are usually unemployed. For this reason, many of them push to sign up for Medicare the moment they become eligible. However, if you are 65 years old and still employed, you are also eligible for this health insurance plan. Whether you should take advantage of it is another matter. In this article, we will examine this. By the end, you will have all the facts required to make an informed decision.

Medicare Part A

There are two major Medicare health plans: Medicare Part A and Medicare Part B. Medicare Part A is premium-free. It covers in-patient hospital charges and other things.

To become eligible for Medicare Part A, you should have worked for approximately 10 years by the time you are 65. We advise you to enroll in this plan even if your employer provides a low-cost insurance plan. This is because Medicare Part A covers certain things that employers sometimes do not.

Medicare Part A has a number of peculiarities. They include:

If your employer has employed 20 or more people

The chances are that your employer provides you with a group health plan. If this is the case, you don’t have to sign up for Medicare Part A, especially if it will put a strain on your finances. However, remember that this health plan is premium-free.

If your employer has employed less than 20 people

In this situation, you should sign up for Medicare Part A as it will be your primary insurance. That is, Medicare is the first plan that will be called on when you need to pay a healthcare bill. It is only after this that your employer’s plan will kick in and account for the rest.

If you save to a Health Savings Account (HSA)

If you want to continue saving in your HSA, you should delay enrolling in Medicare. This is because HSA contributors aren’t allowed to sign up for Medicare. Furthermore, stop making HSA contributions at least six months before you enroll for Medicare.

Medicare Part B

Unlike Medicare Part A, Medicare Part B requires a premium. This plan covers doctor visits and other outpatient services. If you are a working 65-year-old with employer health coverage, you should delay enrolling for Medicare Part B.

Similar to Medicare Part A, this plan has its own peculiarities, including:

If your employer has employed 20 or more people

You don’t have to enroll at age 65. In fact, you can delay signing up until you stop working or lose your employer coverage.

 If your employer has employed less than 20 people

You must enroll in this insurance plan as it will be your primary insurance.

If you save to a Health Savings Account (HSA)

You can’t continue saving to your HSA if you want to enroll in Medicare Part B. If you intend to sign up for it, stop saving into your HSA six months before.

Note: As a working 65-year-old, it is not crucial to sign up for Medicare, whether Part A or Part B. However, you should sign up for the plan within eight months of stopping work or losing your employer coverage. If you don’t do this, you might have to pay the penalty.

Finally, Medicare rules and processes can be complex. To avoid making mistakes and omissions that could cost you, consult with Medicare and your employer’s coverage administrator.

If you want to know more about this and other types of personal insurance, contact us at Miller Carlisle Insurance Services today!