What To Do After You Turn 65
In order to receive full Social Security benefits, you must work until age 66 and 10 months for those born in 1959 so many people choose to continue working beyond age 65.
In January of 2025 and beyond:
In order to receive full Social Security benefits, you must work until age 67 for those born in 1960 and after, so many people choose to continue working beyond age 65.
However, because you are eligible for Medicare at age 65, many people choose to enroll in Medicare as Part A (hospital coverage) because it will often have no premium. In this situation, it may make sense to delay enrollment in Medicare Part B until retirement, or until you lose credible employer-sponsored health insurance coverage.
If you do work past 65, the enrollment period for a Medicare health plan or prescription plan is reduced to 60 days.
Do I have to enroll in Medicare if I still have employer-sponsored insurance?
Most people who plan to keep working beyond age 65 will continue to have employer-sponsored health insurance. If this is your situation, you are not required to enroll in Medicare and you will not be penalized for enrolling at a later date if the employer insurance is considered creditable coverage.
However, there are instances where Medicare can be more cost-effective than your employer-sponsored coverage. You can acquire a summary of benefits from your health plan’s administrator and we are happy to work with you to determine how it may compare to the Medicare coverage that is available to you.
Do I have to enroll in Medicare if I have an individual health insurance plan?
Even if you have Marketplace coverage, you should enroll in Medicare when you’re first eligible to avoid the risk of a delay in Medicare coverage and the possibility of a Medicare late enrollment penalty. It’s important to terminate (end) your Marketplace coverage in a timely manner to avoid an overlap in coverage. Once you’re considered eligible for or enrolled in Part A, you won’t qualify for help through the Marketplace for paying your Marketplace plan premiums or other medical costs. If you continue to get help paying your Marketplace plan premium after you have Medicare, you may have to pay back the help you got when you file your taxes
How do enrollment rules change if I work past age 65?
If you work past age 65 all the rules regarding open enrollment change.
You will only have 60 days from your Medicare Part B effective date to apply for a Part C Medicare Advantage Plan or Part D prescription drug plan. If you miss this enrollment opportunity you will have to wait until the next Annual Enrollment Period (AEP), October 15 to December 7, and your plan will be effective January 1st.
You will also likely have to pay a penalty for the period of time you are eligible for part D prescription drug coverage but did not have it.
Please feel free to call or email us any time for a more detailed explanation of the impact of waiting to enroll.
How do enrollment rules change if I continue working?
If you enroll in Medicare Parts A and B when you turn 65, but you are still working and covered under employer-sponsored health insurance there are rules that stipulate which insurance is primary and which is secondary.
Typically, if your employer has fewer than 20 employees, Medicare will be the primary. However, if your employer’s insurance requires a high deductible and then a coinsurance until an out-of-pocket maximum is reached you may be able to get better coverage through Medicare. You can ask your health plan’s administrator for a summary of benefits, and we can look at it and compare it to what is available for you through Medicare.
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