Can I Work and Have Medicare Insurance?
Whether they’re concerned with affording retirement or love their job, Americans are working later in life. In fact, the percentage of older adults working today is the largest since the creation of the Medicare program in the 1960s.
Some individuals, maybe even you, will still be actively employed upon becoming eligible for Medicare insurance. Can you work full time and enroll in Medicare insurance, and if you choose to not enroll, will you get a penalty?
Can You Have Medicare Insurance While Working?
If you’re working when you enter your Initial Enrollment Period (IEP), you can enroll in Medicare insurance plans. As long as you meet all the criteria needed to be eligible, it is your right to do so. You can also choose to delay your Medicare insurance coverage, though you may be penalized later.
If you don’t receive health coverage through work, it’s safe to say you should get Medicare insurance coverage.
What If I Have Non-Retiree Health Coverage Through Work?
If you have non-retiree health insurance through your or your spouse’s employer when you become eligible, you’ll have to choose if you want to enroll in Medicare Parts A, B, and/or D. Ultimately, this decision depends on the type of health coverage you or your spouse currently have and the size of your or your spouse’s employer.
If the employer has fewer than 20 employees, you’ll probably want to enroll in Parts A, B, and D upon becoming eligible for them. In this situation, Medicare insurance usually becomes your primary coverage. If the employer has 20 employees or more, you may want to delay Parts A, B, and/or D if you have sufficient group coverage and know you won’t incur late enrollment penalties. Medicare insurance usually pays second to group coverage from larger employers.
Generally speaking, you should consider enrolling in Part A after qualifying for the Medicare program. For many seniors, Part A is premium-free and acts as great supplementary coverage. In some cases, it may not make sense to enroll in and pay the monthly premiums that come with Parts B and D right away. Before making the decision to delay any part of the Medicare program, compare the coverage to see if enrolling in it while covered by your current health plan makes sense. If you have any questions, you can always reach out to a licensed insurance agent or your employers’ Human Resources department.
When Can I Delay Medicare Insurance Enrollment Without a Penalty?
If you have non-retiree group coverage through your employer or your spouse’s employer, you will most likely be able to delay Medicare Parts A, B, and/or D without getting penalized. You could be at risk for receiving late enrollment penalties:
- If the company you or your spouse works for has under 20 employees and you delay your Medicare insurance coverage
- If you get qualifying coverage through your domestic partner’s workplace, but aren’t married to him or her, and delay your Medicare insurance coverage
- If your employer does not offer creditable prescription drug coverage and/or you go at least 63 days without creditable drug coverage
What Happens with Medicare Insurance After I Retire?
Once your employment or non-retiree employee group coverage ends (whichever comes first), you’ll enter a Special Enrollment Period (SEP). During this SEP, which starts the month after the qualifying event and lasts for the eight months afterwards, you can usually enroll in a Medicare insurance plan without incurring a penalty.
If you don’t enroll in Parts A and/or B during the SEP, you’ll start to accrue a penalty that will take effect if and when you enroll in them.
With so many retirees counting on the Medicare program for coverage, we often don’t think about working while on Medicare insurance, but working and the Medicare program can go hand in hand. Whether you choose to have Medicare insurance while employed or rely on coverage through your work, you should look at your options to make sure it’s right for you. The same goes for remaining on your partner’s employee health plan after age 65. Knowing your options can keep you covered when you need it most and avoid a potential financial penalty.
Read more:
Medicare.gov. Working past 65. – https://www.medicare.gov/basics/get-started-with-medicare/medicarebasics/
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Not affiliated or endorsed by Medicare or any government agency.