One of the most common questions I get from people as they approach 65 is:
“I am covered by employer health insurance, can I delay joining Medicare without penalty?”
This is an excellent question because there’s so much information saying that you must join Medicare at 65 or you may be penalized.
- Medicare Creditability
- Medicare Creditability Rules
- Steps to Take
- Who can help me?
Medicare Creditability
The Medicare creditability rule states:
“By the time you turn 65, you need to be on health insurance that meets Medicare rules, and if you aren’t, you will be penalized.”
What does this mean?
If you have health insurance through an employer or a spouse’s employer when you turn 65, you will likely not be penalized for not joining Medicare.
The key here is “meets Medicare rules.”
Medicare Creditability Rules
I go into more detail on this during my free online workshop, but the three main factors are:
- The size of your company (and the amount of employees on the health insurance).
- Medicare requirements for your company.
- The prescription plan is deemed creditable.
That means if your employer plan meets those three then you can delay joining Medicare without penalties.
I have helped plenty of clients in their 70s join Medicare for the first time.
65 is not old anymore. It’s very young, and people are working well past 65 and doing all sorts of incredible things past 65.
However, if you don’t have an employer plan that meets Medicare rules, then you must enroll in Medicare at 65.
I will also say that there are circumstances in which Medicare has better coverage and is more affordable than your employer’s insurance.
Steps to Take
You will want to be sure to confirm these details with your employer directly. That means talking to your HR department or the department that handles your benefits.
I have had clients assume they were fine to delay and now have thousands of dollars in bills and monthly penalties.
Who can help me?
Be thoughtful in the details when it comes to making your Medicare decision. Far too often I have seen people take bad advice from insurance agents, friends & family, and even the government.
Bad Medicare advice doesn’t just jeopardize your retirement savings, but it can jeopardize critical health care options when you need it the most.
The Medicare Coach is an unbiased, independent Medicare expert. We have helped thousands of people make their RIGHT Medicare decision for their unique situation.
You can join my next free online Medicare workshop where I cover how to cut through all the Medicare noise and help you find peace of mind in your decision.
