We’re going to compare employer coverage versus Medicare and what you need to know if you plan to keep working past the age of 65 in one minute.
We hear it all the time. What is better – should I stay on my employer coverage, or should I switch to Medicare?
What you need to remember is that retirement is not a requirement to go on Medicare. Regarding your employer coverage, you need to consider – what is my premium? What is my deductible? Do I have a spouse or any dependents on my coverage? Are those higher costs than if you went onto Medicare? What is your Medicare eligibility?
When considering Medicare, the cost for you can be much lower than your employer coverage. Medicare gives you extra benefits that your employer coverage may not give you.
Learn why more than 50,000 individuals have trusted us with their Medicare guidance.
Now more than ever, individuals ages 65 and older are delaying retirement and staying in the workforce. If you’re past age 65, you can sign up for Medicare regardless of your current employment status. We make it easy to enroll in Medicare without retiring. Our advisors provide local help with health insurance options.
Here’s how you can enjoy the best of both worlds: accessing your Medicare benefits while continuing your career.
When it comes to Medicare, many people feel overwhelmed by the number of plan options. There’s Original Medicare (Part A and Part B), Supplements (Medigap), Prescription Drug plans, and Medicare Advantage. You have hundreds to choose from!
However, having so many Medicare plan options means you can truly customize your coverage. Compared to your employer group coverage that offers few options, Medicare isn’t one-size-fits-all. You can choose a plan based on your needs and budget, rather than your employer’s.
With RetireMed, you have a team of experts available to give you no-cost, local help with health insurance options. Let us do the heavy lifting. Our advisors will compare your employer group coverage to Medicare to see which makes the most sense. We research plans and explain your options so that you feel confident in your plan choice. If you have a spouse who needs an individual health insurance plan or Medicare coverage, we can help with that, too.
As you weigh your Medicare options, consider the benefits you can access once you make the switch. Some Medicare plans offer affordable out-of-pocket costs coupled with perks such as:
You can enjoy these benefits while continuing your career when you enroll in Medicare without retiring.
Does your current health insurance come with a health savings account (HSA)? Then you’ll need to be mindful of when to stop depositing funds.
If you apply for Medicare prior to your 65th birthday month, you can contribute to your HSA through the day before your Medicare effective date. If you apply after that time, you should stop depositing funds to your HSA up to six months prior to signing up for Medicare since you could face penalties if you continue to contribute.
Once you’re on a Medicare plan, you can still use your existing HSA funds to cover certain health care costs. You won’t lose your HSA funds by switching to Medicare. Learn more about Medicare and HSAs here.
If you work at an organization with fewer than 20 employees, you’ll be required to enroll in Medicare once you become eligible at age 65. However, if you work for a larger organization, you can choose between Medicare and your employer’s group coverage. Either way, you can have the option to enroll in Medicare without retiring.
If you are turning 65 years old and still working, you may want to ask your employer or union benefits administrator if they require you to enroll in Medicare. If your employer does not require you to sign up for Medicare right away, be sure to sign up during your special enrollment period to avoid a late enrollment penalty.
If you are 65 and older and have been employed for at least 10 years under Medicare-covered employment while paying Medicare taxes, and you have been receiving Social Security benefit checks, you will automatically be enrolled in Medicare Part A & B, even if you choose to continue to work. If you only wanted Part A, you would need to take additional steps to enroll and refuse Part B. RetireMed’s advisors can help walk you through these steps and options as they are dependent on your unique situation and could have penalty implications if not navigated appropriately.
If you are turning 65 or already over age 65 and receive health insurance coverage from your employer and do not need Medicare coverage, you still need to take several important steps to avoid incurring a penalty when you enroll in Medicare. Not taking the right steps on time could lead to unpleasant surprises like lifetime penalties, periods without health coverage, and even insurance claim issues.
The necessary steps depend on your age, if you have a qualifying disability, or if you have retiree or COBRA coverage. Your requirements for enrolling in a Medicare plan at age 65 may also be impacted by the size of your employer and the plans available through your employer.
In the instance that you have COBRA or retiree health insurance from a former employer or union, Medicare will become the primary health insurance after you enroll. Any amount not covered by Medicare can be submitted to your employer’s plan for secondary coverage. Learn more about Medicare and COBRA here.
Whether you’re curious about plan options, enrollment deadlines, or what to do with your HSA funds, our advisors are here to help. Talk with us to learn more about what you can gain when you enroll in Medicare without retiring.