Medicare vs Job-Based Health Insurance
These days, many people are working past 65 and in that situation, Medicare works a little differently. Here are a few things to think about when working past 65.
Generally, if you or your spouse are still working and have health insurance through an employer, you don’t have to sign up for Medicare. You have the option to wait until you or your spouse stop working or lose employer coverage. However, there are still situations where you might need to sign up for Medicare which can also affect how the coverage works.
Self Employed
You will want to check with your insurance provider to find out if your coverage is employer group health plan coverage as defined by the IRS. If it is not, then you should sign up for Medicare when you turn 65 to avoid late enrollment penalties.
Employer has less than 20 employees
This is another situation where you might need to sign up for Medicare when you turn 65 to avoid late enrollment penalties. In this situation, Medicare would pay for services first, and then the job-based insurance would pay second. It is best to ask your employer if you need to sign up for Medicare when you turn 65.
Employer has more than 20 employees
You can choose to wait until you or your spouse stop working or you lose employer health insurance before signing up for Medicare, and you would not be subject to the late enrollment penalty. You can also choose to sign up for Medicare and keep the employer group health plan as well. In this case, the group health plan would pay for services first, and Medicare would pay second.
These are a few examples of what to consider if you are working past 65 and are unsure if you need to sign up for Medicare. There are others, however, and unique situations can also arise, so it is always a good idea to ask your employer.
It is also a good idea to work with a Medicare specialist who will know how to navigate the ins and outs of those unique situations. VibrantUSA agents specialize in Medicare and are here year-round to answer any questions you might have. We are an unbiased resource with the goal of helping each client find the plan that best suits their needs, and our services are always free of charge.
