I'm Still Working. Do I Need to Sign Up for Medicare When I Turn 65?
MN Health Staff Writer | January 18, 2023
If you or your spouse is still working when approaching age 65, the Medicare Part B Penalty is a common concern. Below we break down whether you need to sign up for Medicare Part A and/or Part B to avoid this penalty. Visit this link at Medicare.gov for additional information.
| Scenario: | When To Enroll: |
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You are still working AND have creditable health coverage through your employer
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You can wait to enroll in Part B until you plan to stop working and leave employer coverage. |
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Employer coverage is NOT an HSA plan |
You can enroll in Part A at age 65 at no cost, and defer Part B (as stated above). This would provide additional hospitalization coverage.
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Employer coverage is an HSA plan
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You would want to wait to enroll in Part A and Part B until you plan to stop working and leave employer coverage. You cannot contribute to an HSA if you have Medicare Part A.
However, if your employer coverage seems expensive (and your spouse doesn’t need coverage under your employer plan), you may want to talk with a broker to review your options. In some cases, it may be more cost effective to enroll in Parts A & B and a Medicare plan instead of continuing on your employer plan.
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Your spouse is still working AND you have creditable health coverage under your spouse’s employer
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Same as examples above
However, talk with a broker to review your options. In some cases, it may be more cost effective to enroll in Parts A & B and a Medicare Supplemental Plan rather than continue on your spouse's plan
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You are still working AND DO NOT have creditable health coverage through your employer
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You must sign up for Part A and Part B when you turn 65 to avoid the penalty |
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Your spouse is still working AND YOU DO NOT have creditable health coverage under your spouse’s employer
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You must sign up for Part A and Part B when you turn 65 to avoid the penalty |
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You are self-employed and still working
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You must sign up for Part A and Part B when you turn 65 to avoid the penalty |
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You have COBRA
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You must sign up for Part A and Part B when you turn 65 to avoid the penalty Note: COBRA is not considered creditable coverage for deferring Part B Enrollment. You will incur a penalty if you do not enroll in Part B when you turn 65, even if you are on COBRA
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In general, the main thing you need to understand is that if you have creditable health coverage that can continue on past age 65, you will not incur a penalty for not signing up for Part B when you turn 65. In most cases, this creditable coverage would be employer coverage.
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