65 and Still Working? Here’s What You Need To Know About Medicare

There are a lot of misconceptions about Medicare, especially for those who are still working at 65. Here are some of the most common questions and answers to help clear things up.

What You Need to Know

Medicare is a health insurance program for people age 65 or older, and for some younger people with disabilities.

There are two main parts to Medicare:

  • Part A is a health insurance plan that helps cover inpatient care in hospitals, skilled nursing facilities, and some home health care.
  • Part B is a medical insurance plan that helps cover costs for doctor visits, outpatient care, preventive services, and some other medical services.

You are eligible for Part A at no cost if you or your spouse have worked long enough and paid Medicare taxes. Most people do not have to pay a monthly premium for Part A.

Part B has a monthly premium, though. The standard Part B premium for 2022 is $170.50 per month, and the annual deductible is $233.

You can sign up for Part A and/or Part B during the seven-month Initial Enrollment Period (IEP). This starts the three months before your 65th birthday month and ends three months after your birthday month.

If you are still working and have employer health insurance, you may not need to sign up for all parts of Medicare during your IEP. Check with your employer or the Social Security Administration to find out more.

If you don’t sign up for Part B when you’re first eligible and do not have creditable coverage through your employer, you may have to pay a higher premium when you do sign up. If you missed signing up for Medicare during your IEP, you can sign up for Part B during the General Enrollment Period (from January to March each year), but your coverage won’t start until July.

Working While 65 and Medicare

If you are still working and have health insurance through your job, you may delay signing up for Medicare Part B without penalty. However, you will still need to sign up for Part A when you are first eligible.

Before you decide whether to sign up for Medicare part B and the other parts of Medicare, consider the following:

  • Your health care needs. Depending on your current health care needs and what type of coverage you have through your job, Medicare may or may not be the best option for you. If your employee health plan covers most of the costs you are currently paying for health care, it may be wise to wait until you retire to sign up for Medicare.
  • Your budget. Medicare premiums, deductibles, and coinsurance can add up, so make sure you consider how these costs will affect your budget.
  • Your other insurance options. If you have retiree health coverage or are covered by a spouse’s health plan, you may not need to sign up for Medicare. However, keep in mind that these plans may not cover all of your health care costs and may have age restrictions.

The Bottom Line

Knowing when to sign up for Medicare can be confusing, but it’s important to make a decision that’s right for you. To learn more about your insurance options, visit Medicare Insurance Advisors.