You’ve done your research, and you know that signing up for Medicare on time is important to avoid fees. But your current employer still provides you with healthcare: do you need to sign up for Medicare when you already have health insurance that works for your budget and health needs?
Insurance Pipeline Inc. is a national health insurance agency that helps seniors navigate their health insurance options. One question many clients come to Insurance Pipeline Inc. with is whether or not they need to sign up for Medicare if they are still working when they turn 65 years old. Below you will find the answer to this very important question.
Understanding Medicare Enrollment Late Fees
Your Initial Enrollment Period, the first time you are eligible to enroll in Medicare, starts three months before the month of your 65th birthday and lasts for a total of seven months. While Medicare Part A is typically free, monthly payments must be made for Medicare Part B. Medicare Part A covers inpatient hospital and hospice stays; Part B covers services such as doctor office visits, preventative health services, and mental health care. Generally, if you do not get Medicare Part B when you are first eligible, your monthly premium may increase up to 10% for each 12-month period when you could have had Part B.
If Your Employer Has At Least 20 Employees
If you are employed after the age of 65, your employer has at least 20 employees, and they continue to provide you healthcare, then you will have an eight-month Special Enrollment period to sign up for Medicare. This period will begin when you leave your job or if your employer stops providing health coverage—whichever comes first.
It is your choice whether you want to delay your Medicare enrollment and solely rely on your employer’s health insurance, use Medicare alone, or use both Medicare and your employer’s health plan. If you have coverage through your spouse’s current employer, the same rules apply. Note that this does not apply to anyone covered under COBRA or a retiree plan with a former employer.
If Your Employer Has Less Than 20 Employees
Employers with fewer than 20 employees are not obligated to provide health insurance to their employees who are of age 65 and older. Therefore, it may be in your best interest to enroll in Medicare Part A and Part B as your primary insurance. Typically, Medicare will pay your bills first, and then your employer’s group plan will serve as a secondary coverage when it covers services that Medicare does not cover.
Talk to your employer’s benefits administrator before you sign up for Part B because signing up for Part B will automatically start your Medigap Open Enrollment Period. Medigap is a supplemental insurance policy sold by private insurance companies to fill the “gaps” in Medicare coverage by providing financial support for certain services not covered by Original Medicare.
Because Medicare Part A is free, it may be a good idea to enroll in Part A even if you stay on your employer’s health care plan. An exception is if you want to continue making contributions to a health savings account (HSA), which is not allowed when you are enrolled in Medicare Part A or Part B.
About Insurance Pipeline Inc.
Insurance Pipeline Inc. is a health insurance agency specializing in senior healthcare products and solutions. The company, initially founded and run by Corey Shader, is now one of the top senior healthcare Agencies in the nation. Insurance Pipeline provides a wide variety of solutions to meet every need and budget — primarily focusing on Medicare Supplement Plans as well as Medicare Parts A, B, and D.
