The number one question we get here at the Medicare Coach is, “I am working after I turn 65, do I have to join Medicare?”
This is an excellent question. If you don’t make the right decision, you could face penalties that could jeopardize your retirement savings.
The unfortunate part is there’s a lot of incorrect information about whether or not you can or cannot delay joining Medicare at 65.
It is becoming more and more common with people working past 65 right. So I want to get clear if you are working past 65 whether or not you need to join Medicare, and the answer is that it depends.
Medicare rules say that if you have an employer plan past 65 that meets specific rules and criteria, you will not be required to join Medicare at 65. Additionally, you will not be penalized for delaying your Medicare enrollment.
What that means is, you may or may not need to join Medicare. To determine this, my recommendation is do not assume that you have to join Medicare.
Here are three examples of what I see to explain why this is so important:
People on employer plans also join Medicare as they think it’s required. Therefore, they pay for their employer plans and Medicare Part B.
We had a client named John, and he came in and said, “you know, Emily, I’m 69. I’m retiring. What do I do?” We had found out that he’d been on his employer plan for the last four years, and he was also paying for Medicare Part B and was not necessary for him. That meant that he had spent over $7,000 for Medicare Part B when it was not necessary.
People assume they don’t have to join Medicare because they have an employer plan.
I have a client right now, he’s 65, and his wife is a year older, so she’s 66. He’s still working, and so they are covered by his employer plan. They did not realize that his employer plan required everyone 65 to be on Medicare A and B.
Now, it’s a mess because she’s going to face penalties for not being on Part B when she turned 65. Because of Medicare rules, she has to wait another 10 months to join Medicare.
People assume they are better off on their employer plan so don’t consider Medicare.
This week I met with Ron. Ron is retiring at 65. His employer offers retiree health insurance, so he was trying to decide whether he would stay on retiree health insurance or be better off Medicare. Ron gave me all of the details of his retiree plan, the premiums, the co-pays, and the deductibles. Based on the plan details and his Medicare options, we confirmed that he could save $18,000 in just the next 12 months by leaving his employer plan and joining Medicare.
With all of this said, if you’re working past 65, please don’t assume either way. Whether joining Medicare A and or B or not joining until you have researched what you should or shouldn’t do. You need to get clarity on what the rules are, and exactly which decision fits you.
The good news is, iff you have health insurance from an employer and plan to work after you turn 65, I’ve created an easy-to-follow guide called “Delaying Medicare Without Penalties.”
In the guide I walk you through:
- Three requirements you must meet to Delay Medicare.
- Step-by-Step Method to Confirm if you “Should” join Medicare. Just because you can delay Medicare doesn’t mean you should.
- Government documents required to notify the government that you are delaying Medicare to avoid penalties.
- Exact steps to “Enroll in Medicare After 65.”
This guide saves our clients time and money and gives them the peace of mind they are taking the right steps for Medicare.
To get “Delaying Medicare Without Penalties,” CLICK HERE.
