Working Past 65: Medicare Options
Retirement used to mean stopping work at 65. Nowadays, many people choose to keep working. Whether it’s because they need the money, want to stay active, or love their job, working after 65 is more common than ever. If you plan to work past 65, it’s important to know what healthcare options are available to you, especially when it comes to Medicare. In this article, we’ll explain the choices you have for Medicare coverage if you continue working after 65.
Medicare Basics
Medicare is a government program that gives health insurance to people who are 65 or older.
It has different parts:
- Part A covers hospital care
- Part B covers medical services
- Part C Medicare Advantage (optional)
- Part D covers prescription drugs
There are also private insurance plans called Medigap that can help with costs not covered by Medicare.
Working After 65
If you decide to keep working after you turn 65, you have a few options for Medicare coverage:
Enroll in Medicare Part A: Most people don’t have to pay for Part A, so it’s a good idea to sign up for it even if you have health insurance from your job. Part A helps pay for hospital stays, skilled nursing care, and some home healthcare services.
Review your work health insurance: If you have health insurance from your job, take a close look at what it covers. Think about things like how much you have to pay each month, how much you have to pay if you go to the doctor, and what services it covers. See if better than what’s being offered by Medicare. If Medicare is a better option, drop your employer coverage.
Decide if you want Part B now or later: If your work health insurance is good and meets Medicare’s standards, you can wait to sign up for Part B. But it’s important to think about your situation and talk to someone who knows about Medicare to make sure it’s the right choice for you.
Special Enrollment Period (SEP): When you stop working or your work health insurance ends, you have a special time to sign up for Medicare without any penalties. This time usually lasts for eight months, starting from the month after you stop working.
Consider Medicare Advantage (Part C): Medicare Advantage plans are another choice instead of Original Medicare. These plans are offered by private insurance companies and give extra benefits like prescription drugs, vision, and dental care. If you want more coverage, Medicare Advantage might be a good option.
Think about Medigap plans: If you choose Original Medicare, you can get a Medigap plan to help pay for things that Medicare doesn’t cover, like deductibles and copayments. But remember, Medigap plans only work with Original Medicare, not with Medicare Advantage.
Is there a penalty for not signing up?
You have to sign up for Medicare at 65 to avoid penalty UNLESS you have employer coverage from active employment. If your employer coverage meets Medicare’s minimum standards, you can delay. Never assume your employer coverage is better than Medicare. You have paid taxes for 40 years to be “entitled” to Medicare. Why wouldn’t you compare your options?
Delaying Part B
If you decide to delay Part B , once you retire you will pick up Part B. You have 8 months from the day your employer coverage ends to pick up Part B without penalty. However; it wouldn’t be practical to wait until after retirement , because you wouldn’t have any health insurance for a few months. So instead, 2 to 3 months before your insurance ends at work, start applying for Medicare. You need to fill out two forms: The CMS 40B and the CMS L564. Once these are completed, you send to your local social security office to process. In a few weeks you will receive a new Medicare card in the mail with Part B on it. By now, you should be working with a Medicare expert to start shopping for supplemental coverage.
Conclusion
Deciding to work after 65 can be a great choice, but it’s important to understand your options for healthcare. Remember to look at your work health insurance, sign up for Medicare Part A, and make smart decisions about signing up for Part B. If you need help, talk to someone who knows about Medicare or ask a Medicare representative. They can guide you through the process and help you choose the best Medicare options for your health needs and budget.
