Do I Need To Enroll At 65 If I Work For A Large Company
As long as you have health insurance from a company that employs 20 or more people where you or your spouse actively works, you can delay enrolling in Medicare until the employment ends or the coverage stops, whichever happens first. Youre entitled to a special enrollment period to sign up for Medicare before or within eight months of losing that job-based coverage to avoid a late-enrollment penalty.
The law. Large employers with at least 20 employees must offer you and your spouse the same benefits they offer younger employees and their spouses. You not the employer can decide whether to:
- Accept the employer health plan and delay Medicare enrollment
- and rely wholly on Medicare
- Have employer coverage and Medicare at the same time
Many people enroll in Medicare Part A at 65, even though they have employer coverage, because its free unless they or their spouse has paid fewer than 40 quarters of Medicare taxes. However, they may decide to wait if they want to continue contributing pretax dollars to a health savings account . More on that later.
Those who have access to employer-based health insurance often delay signing up for Part B while theyre still working. That way, they dont have to pay premiums for both Medicare and the employer coverage.
Be aware. If you choose to enroll in both an employer group plan and Medicare Part B, the employer insurance is always primary when a large company provides it. That means it pays your medical bills first.
Avoid Increased Hospital Insurance
Recipients pay premiums for Part A if they’ve worked less than 40 quarters, or ten years, at a job where they paid Medicare taxes. While many aren’t required to pay these premiums, those who do face a 10% increase for twice the number of years they failed to sign up. If you delay enrollment for two years after you turn 65, you’ll be subject to increased premiums for four years.
Should I Sign Up For Medical Insurance
With our online application, you can sign up for Medicare Part A and Part B . Because you must pay a premium for Part B coverage, you can turn it down.
If youre eligible at age 65, your initial enrollment period begins three months before your 65th birthday, includes the month you turn age 65, and ends three months after that birthday.
If you choose not to enroll in Medicare Part B and then decide to do so later, your coverage could be delayed and you may have to pay a higher monthly premium for as long as you have Part B. Your monthly premium will go up 10 percent for each 12-month period you were eligible for Part B, but didnt sign up for it, unless you qualify for a “” .
If you dont enroll in Medicare Part B during your initial enrollment period, you have another chance each year to sign up during a general enrollment period from January 1 through March 31. Your coverage begins on July 1 of the year you enroll. Read our publication for more information.
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Medicare Part Bit Depends On The Size Of Your Employer
Medicare Part B covers doctors’ services, outpatient care, medical supplies and preventive services. The primary consideration in deciding if you need Part B is how many employees work at your company.
- If your company has 20 or more employees, your company would remain your primary insurer and you can delay enrolling in Part B without worrying about a late-enrollment penalty or lapse of coverage. When you leave your job, you then have eight months to sign up for Part B under a Special Enrollment Period.
- If your company has fewer than 20 employees, Medicare is considered your primary insurer, whether you’ve enrolled in Medicare or not. Your company plan is the secondary, which means that your employer plan won’t pay for anything that’s assumed to be covered by Medicare. If you don’t sign up for Part B as soon as you’re eligible, you may have to pay a penalty, and there could be a delay in coverage.
When Should I Sign Up For Medicare
Generally, we advise people to file for Medicare benefits 3 months before age 65. Remember, Medicare benefits can begin no earlier than age 65. If you are already receiving Social Security, you will automatically be enrolled in Medicare Parts A and B without an additional application. However, because you must pay a premium for Part B coverage, you have the option of turning it down. You will receive a Medicare card about two months before age 65. If you would like to file for Medicare only, you can apply by calling 1-800-772-1213. Our representatives there can make an appointment for you at any convenient Social Security office and advise you what to bring with you. When you apply for Medicare, we often also take an application for monthly benefits. You can apply for retirement benefits online.
If you didnt sign up when you were first eligible for Medicare, you can sign up during the General Enrollment Period between January 1 and March 31 each year, unless you are eligible for a Special Enrollment Period.
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If Im Still Working At Age 65 When Do I Sign Up For Medicare
En español | If you arent already receiving Social Security benefits at age 65, you wont be signed up automatically. So youll have to make a decision.
Whether you need to enroll in Medicare if you continue to work and have health benefits through your job depends on the size of the employer. The same rules apply if your health insurance is through your spouses job.
A Late Enrollment Penalty
You’d only be subject to a Part A late enrollment penalty if you’re not eligible for premium-free Part A coverage. Most Americans don’t have to worry about this, as they have at least ten years of work history, or are/were married to someone who does. But if you’d have to pay a premium to buy Part A coverage, there’s a penalty if you delay your enrollment.
The penalty is a 10% increase in your monthly premium. In 2020, the Part A premium is $458/month for people with 0-29 quarters of work history, and $252/month for people with 30-39 quarters of work history. So those premium amounts would increase to $504/month and $277/month, respectively, if you’re subject to the late enrollment penalty.
But unlike the penalties for Part B and Part D, the penalty for late enrollment in Part A does not last forever. Instead, you’d pay it for twice as long as the amount of time you delayed your enrollment. So if you were eligible for Medicare for three years before enrolling, you’d have to pay the extra Part A premiums for six years. Keep in mind that the Part A premium changes each year , so the actual amount you’d be paying would vary for each of those six years.
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Signing Up For Medicare Part B At 65 If Youre Still Working
If youre still working at age 65 and youre not claiming Social Security benefits, the government will not automatically enroll you in Medicare Part B, which covers doctors visits, diagnostic tests, medical equipment, ambulance transportation, and mental health care.
If you work for a company with 20 or more employees and youre enrolled in your employers health insurance plan, you dont have to enroll in Part B. You also might not want to because it isnt free.
I Am Turning 65 In A Few Months And Want To Go On Medicare Will I Be Automatically Enrolled In Parts A And B Or Do I Need To Sign Up
It depends. If youre receiving benefits from Social Security or the Railroad Retirement Board at least four months before you turn 65, you do NOT need to sign up youll automatically get Part A and Part B starting the first day of the month that you turn 65. You should receive your Medicare card in the mail three months before your 65th birthday. If you are NOT receiving benefits from Social Security or the RRB at least four months before you turn 65, you will need to sign up with Social Security to get Parts A and B. To sign up to receive Parts A and B, you can enroll online with Social Security, call Social Security at 1-800-772-1213, or visit your local Social Security office.
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Other Ways To Get Medicare Coverage At Age 65
If you dont qualify for premium-free Medicare Part A coverage, you may be eligible to buy coverage. However, you must still be a U.S. citizen or a permanent resident for at least five years to qualify.
Other Medicare Eligibility Options
- You can pay premiums for Medicare Part A hospital insurance. Premium costs vary based on how long you have worked and paid into Medicare.
- You can pay monthly premiums for Medicare Part B medical services insurance. Youll pay the same premiums as anyone else enrolled in Part B.
- You can pay monthly premiums for Medicare Part D prescription drug coverage. Your premium will be the standard rate and would depend upon the plan you choose.
Your First Chance To Sign Up
Generally, when you turn 65. This is called your Initial Enrollment Period. It lasts for 7 months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65.
Avoid the penaltyIf you miss your 7-month Initial Enrollment Period, you may have to wait to sign up and pay a monthly late enrollment penalty for as long as you have Part B coverage. The penalty goes up the longer you wait. You may also have to pay a penalty if you have to pay a Part A premium, also called Premium-Part A.
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Signing Up For Medicare During Your Initial Enrollment Period Eliminates Late Enrollment Penalties You May Have To Pay If You Enroll In Medicare Later
These penalties include the Medicare Part B late enrollment penalty and the Medicare Part D late enrollment penalty. If you enroll in Part B or Part D at any time following your Medicare Initial Enrollment Period, you may have to pay these penalties as long as you have Part B or Part D coverage.
You may be exempt from the Part D penalty, however, if you had creditable drug coverage during the time you were eligible for Medicare Part D coverage but were not enrolled in a Part D prescription drug plan. If you enroll in Medicare after your Initial Enrollment Period and do not qualify for premium-free Part A coverage, you may also be obligated to pay a Part A late enrollment penalty.
Example : You Are Contributing To Your Group Health Insurance Plan
In almost all cases, you can save money by switching to Medicare with a Medigap plan if youâre the one contributing to your group health insurance plan.
Health insurance premiums are sky-high, with some plans costing upwards of $800 per month. Medicareâs monthly premium is nowhere close to that, and you can even add on a Medicare Supplement with no chance of reaching that kind of premium.
In sum, you can have much better coverage for a fraction of the cost if youâre paying for your group health insurance and are over 65.
If youâd like a Medicare specialist to help you one-on-one, schedule a free Medicare planner with one of our licensed agents.
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D Late Enrollment Penalty
The Part D late enrollment penalty is similar to the Part B late enrollment penalty, in that you have to keep paying it for as long as you have Part D coverage. But it’s calculated a little differently. For each month that you were eligible but didn’t enroll , you’ll pay an extra 1% of the national base beneficiary amount.
In 2020, the national base beneficiary amount is $32.74/month. Medicare Part D premiums vary significantly from one plan to another, but the penalty amount isn’t based on a percentage of your specific planit’s based instead on a percentage of the national base beneficiary amount. Just as with other parts of Medicare, Part D premiums change from one year to the next, and the national base beneficiary amount generally increases over time.
So a person who delayed Medicare Part D enrollment by 27 months would be paying an extra $8.84/month , on top of their Part D plan’s monthly premium in 2020. A person who had delayed their Part D enrollment by 52 months would be paying an extra $17.02/month. As time goes by, that amount could increase if the national base beneficiary amount increases . People subject to the Part D late enrollment penalty can pick from among several plans, with varying premiums. But the Part D penalty will continue to be added to their premiums for as long as they have Part D coverage.
Do I Need To Sign Up For Medicare When I Turn 65
It depends on how you get your health insurance now and the number of employees that are in the company where you work.
Generally, if you have job-based health insurance through your current job, you dont have to sign up for Medicare while you are still working. You can wait to sign up until you stop working or you lose your health insurance .
- If youre self-employed or have health insurance thats not available to everyone at the company: Ask your insurance provider if your coverage is employer group health plan coverage If its not, sign up for Medicare when you turn 65 to avoid a monthly Part B late enrollment penalty.
- If the employer has less than 20 employees: You might need to sign up for Medicare when you turn 65 so you dont have gaps in your job-based health insurance. Check with the employer.
If you have COBRA coverage: Sign up for Medicare when you turn 65 to avoid gaps in coverage and a monthly Part B late enrollment penalty. If you have COBRA before signing up for Medicare, your COBRA will probably end once you sign up.
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Things You Should Know
How to find out whether or not you are eligible for Medicare Part A and Part B benefits if you are retired and under age 65 and your spouse or you are disabled
If you or your spouse is disabled and receiving Social Security disability benefits, contact Social Security about Medicare-eligibility. If eligible, contact the GIC at 617.727.2310 to request a Medicare Plan enrollment form.
If you have been a state employee and have never contributed to Social Security
You may still be eligible for Medicare benefits through your spouse. When you turn age 65, visit Social Securitys website or call Social Security to apply to see if you are eligible.
What happens to your spouse’s coverage if you enroll in a GIC Medicare Supplemental Plan
Your spouse will continue to be covered under in a GIC non-Medicare plan if he/she is under age 65 until he or she becomes eligible for Medicare. See the Benefit Decision Guide for under and over age 65 health insurance products. If your spouse is over age 65, he/she must enroll in the same Medicare supplemental plan that you have joined.
What you need to do at age 65 if your spouse or yourself was not eligible for Medicare Part A for free, but now, you and your spouse have subsequently become eligible for Medicare Part A for free
You or your spouse must notify the GIC in writing when you become eligible for Medicare Part A. The GIC will notify you of your coverage options. Failure to do this may result in loss of GIC coverage.
Full Retirement Age By Year
Full retirement age is the age you begin to receive full Social Security benefits. If you start to draw your Social Security benefits before reaching your full retirement age, the payment you receive will be less.
An easy way to think about full benefits and retirement age is this,
- Social Security will reduce your payments if you choose to receive your benefit before full retirement age. The percentage of reduced amount is highest at age 62 and decreases until you reach full retirement age.
- If you choose to receive Social Security payments when you reach full retirement, you will get the total amount.
- Suppose you choose not to receive Social Security payments when you reach full retirement and delay your benefit. In that case, you can increase the amount of your payment by earning delayed retirement credits.
If youre not sure when you reach full retirement age, our table provides the years and months you need to know for full retirement.
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Receiving Social Security For A Disability
If youve received Social Security Disability Insurance for 24 months, youll automatically be enrolled in Medicare on the 25th month after your first SSDI check was received.
According to the Centers for Medicare & Medicaid Services , in 2019 there were 8.5 million people with disabilities on Medicare.