Is It a Good Idea to Get Medicare If You're Still Working at 65

Is It a Good Idea to Get Medicare If You're Still Working at 65?

October 15, 20244 min read

Reaching the age of 65 is a significant milestone, and it comes with important decisions about your health insurance. If you're still working at 65, you might be wondering whether you should sign up for Medicare. At Bourgeois Insurance Agency, LLC, located in Thibodaux, Louisiana, we understand that this can be a confusing time. It’s crucial to make informed choices to ensure you receive the best coverage possible.

Understanding Medicare: The Basics

Medicare is a federal health insurance program primarily for people aged 65 and older. It consists of different parts that cover various aspects of healthcare:

  • Medicare Part A: Hospital insurance

  • Medicare Part B: Medical insurance

  • Medicare Part D: Drug coverage

  • Medicare Advantage: An alternative to Original Medicare that includes Part A, Part B, and usually Part D

Should You Sign Up for Medicare If You're Still Working?

If you’re still working at 65, you might already have health insurance through your employer. You may wonder if you need to enroll in Medicare right away. Here are some factors to consider:

  • The size of your employer

  • Your current health insurance plan

  • Potential penalties for late enrollment

Employer Coverage vs. Medicare

If you have health insurance through an employer with 20 or more employees, your employer coverage is considered primary. This means your employer’s insurance pays first, and Medicare pays second. In this case, you might choose to delay enrolling in Medicare Part B to avoid paying the monthly premium.

Medicare Part A: Hospital Insurance

Most people don’t pay a premium for Part A if they or their spouse paid Medicare taxes while working. It’s generally a good idea to enroll in Part A when you turn 65, even if you’re still working, because it can help cover hospital expenses that your employer insurance might not fully cover.

Medicare Part B: Medical Insurance

Medicare Part B covers outpatient care, doctor visits, and preventive services. If you’re still working and have primary coverage through your employer, you might delay enrolling in Part B. However, if your employer has fewer than 20 employees, your employer coverage becomes secondary, and Medicare pays first. In this case, you should sign up for Part B to avoid gaps in coverage.

Medicare Part D: Drug Coverage

If your employer insurance includes drug coverage, you might not need to enroll in Medicare Part D right away. However, make sure your employer’s plan is considered “creditable” by Medicare standards to avoid late enrollment penalties later on.

Understanding Late Enrollment Penalties

If you choose to delay enrolling in Medicare Part B or Part D, you could face penalties. The penalty for late enrollment in Part B is an increase in your premium by 10% for each 12-month period you were eligible but didn’t sign up. For Part D, the penalty is 1% of the national base beneficiary premium multiplied by the number of months you were eligible but didn’t enroll.

Special Enrollment Period

If you’re still working at 65 and covered by your employer’s insurance, you may qualify for a Special Enrollment Period (SEP) to sign up for Medicare without penalties. The SEP typically lasts eight months after you stop working or lose your employer coverage, whichever comes first.

Medigap: Supplemental Insurance

Medigap Plans can help cover out-of-pocket costs not covered by Original Medicare, such as copayments, coinsurance, and deductibles. If you decide to enroll in Medicare, consider adding a Medigap Plan for additional coverage.

Considering a Health Savings Account (HSA)

If you’re still contributing to a Health Savings Account (HSA) through your employer, be aware that you can’t continue to contribute to an HSA once you enroll in Medicare. Plan your finances accordingly to maximize your HSA benefits before signing up for Medicare.

COBRA and Medicare

If you lose your employer coverage and opt for COBRA, be aware that COBRA is not considered creditable coverage by Medicare. You must sign up for Medicare during your Special Enrollment Period to avoid penalties.

Making the Right Choice for Your Health Coverage

Deciding whether to enroll in Medicare while still working at 65 depends on your specific situation, including your employer’s insurance plan and your healthcare needs. It’s essential to evaluate all factors to make the best decision for your health and finances.

We're Here to Help

At Bourgeois Insurance Agency, LLC, we’re dedicated to helping you make informed decisions about your health coverage. Our team is here to guide you through the process and ensure you have the best protection possible.

Ready to discuss your Medicare options? Contact Bourgeois Insurance Agency, LLC in Thibodaux, Louisiana, at (985) 803-8999. Our experienced team is here to help you navigate your health coverage choices and provide the support you need.

Price Started in the insurance industry over 20 years ago. Working for several well known large corporations over the years but found he could serve his clients and community better as an Independent Agency offering Medicare Supplements (Medigap), Medicare Advantage Plans, Prescription Drug Plans (PDP), and Retirement Planning Services.

Price has spent years building one of the top agencies in the Thibodaux, Louisiana. Dedicated to finding the best solutions and staying up to date on insurance trends and products.

Price Bourgeois

Price Started in the insurance industry over 20 years ago. Working for several well known large corporations over the years but found he could serve his clients and community better as an Independent Agency offering Medicare Supplements (Medigap), Medicare Advantage Plans, Prescription Drug Plans (PDP), and Retirement Planning Services. Price has spent years building one of the top agencies in the Thibodaux, Louisiana. Dedicated to finding the best solutions and staying up to date on insurance trends and products.

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