“I am covered by employer health insurance, do I have to join any parts of Medicare? ”
This is the #1 question I get asked.
It’s an excellent question because there’s so much information saying that you must join Medicare at 65 or you may be penalized.
I am here to tell you that’s not necessarily true.
There are those who can delay joining Medicare without penalty and those who can’t.
Let’s get clear on who can and cannot.
The Medicare 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.”
What are these 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 to avoid penalties.
You will want to be sure to confirm these details with your employer directly. I have had clients assume they were fine to delay and now have thousands of dollars in bills and monthly penalties.
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.
