Are you turning 65 soon? You may be eligible to enroll in Medicare, a federal health insurance program that provides coverage to millions of Americans aged 65 and older. But what if you plan on working past 65? Should you enroll in Medicare, or can you delay your enrollment?
Delaying Medicare enrollment can be a smart decision for some people, but it’s not the right choice for everyone. It’s important to understand your options and how they could affect your health coverage and costs.
Delaying Medicare Enrollment: Working Past 65
If you plan on continuing to work past age 65, you may be able to delay your Medicare enrollment. However, there are some important factors to consider before making this decision.
When you turn 65, you become eligible for Medicare, regardless of whether or not you’re still working. However, if you have employer-sponsored health coverage, you may be able to delay your enrollment in Medicare without facing penalties.
Pros of Delaying Medicare Enrollment
- Continued Employer Coverage
One of the biggest advantages of delaying your Medicare enrollment when you’re still working is that you can continue to receive coverage through your employer-sponsored health plan. If you’re happy with your current coverage and don’t want to switch to Medicare, delaying your enrollment can be a good option.
- Avoid Late Enrollment Penalty
If you delay your Medicare enrollment and continue to have employer-sponsored coverage, you won’t face a late enrollment penalty when you do decide to enroll. The penalty is a 10% increase in your Part B premium for each full 12-month period that you could have had Part B but didn’t sign up for it.
Cons of Delaying Medicare Enrollment
- Risk of Gaps in Coverage
Delaying your Medicare enrollment can also put you at risk of gaps in coverage. If you’re not careful, you could accidentally miss your enrollment period and be left without coverage for a period of time.
- Limited Enrollment Periods
Another potential downside of delaying your Medicare enrollment is that you’ll have limited enrollment periods in the future. If you don’t enroll when you’re first eligible, you’ll have to wait for the next general enrollment period, which runs from January 1 to March 31 each year. Learn more about Medicare Enrollment Periods here.
How to Delay Medicare Enrollment
If you decide to delay your Medicare enrollment, there are some steps you need to take to ensure that you can do so without facing penalties or gaps in coverage.
First, make sure that your employer-sponsored health coverage is considered “creditable coverage.” This means that it provides coverage that is at least as good as Medicare’s coverage. If your employer-sponsored coverage is creditable, you can delay your enrollment in Part B without penalty.
You’ll need to provide proof of creditable coverage to Medicare when you do decide to enroll. Your employer should provide you with this proof, but if they don’t, you can request it from your insurance company.
It’s also important to keep track of your Medicare enrollment periods. You’ll need to enroll in Medicare when your employer-sponsored coverage ends or when you retire, whichever comes first. If you miss your enrollment period, you may face penalties or gaps in coverage.
Frequently Asked Questions
When Should I Enroll in Medicare?
You should enroll in Medicare when you first become eligible, which is usually when you turn 65. If you delay your enrollment, you may face penalties or gaps in coverage.
Can I Delay Medicare if I Have Employer Coverage?
If you have employer-sponsored health coverage, you may be able to delay your Medicare enrollment without penalty. Your employer-sponsored coverage must be considered “creditable coverage” to qualify for this.
What is the Late Enrollment Penalty?
The late enrollment penalty is a 10% increase in your Part B premium for each full 12-month period that you could have had Part B but didn’t sign up for it. It’s important to enroll in Part B when you’re first eligible to avoid this penalty.
What Happens if I Miss My Initial Enrollment Period?
If you miss your initial enrollment period, you’ll have to wait for the next general enrollment period, which runs from January 1 to March 31 each year. Your coverage won’t begin until July 1 of that year, which could result in a gap in coverage.
Can I Switch from Employer Coverage to Medicare?
Yes, you can switch from employer-sponsored coverage to Medicare when you retire or when your employer-sponsored coverage ends. You’ll need to enroll in Medicare during the appropriate enrollment period to avoid penalties or gaps in coverage.
Conclusion
Delaying Medicare enrollment when you’re still working past 65 can be a smart decision for some people, but it’s important to understand your options and the potential pros and cons. If you have employer-sponsored health coverage that is considered creditable coverage, you may be able to delay your enrollment without penalty. However, delaying your enrollment can also put you at risk of gaps in coverage and limited enrollment periods.
If you’re unsure about whether or not you should delay your Medicare enrollment, speak with a Medicare specialist or financial advisor to help you make an informed decision.
Remember, enrolling in Medicare when you’re first eligible is usually the best choice to avoid penalties and ensure that you have comprehensive health coverage.
Need help? Call Health Plans in Oregon: 503-928-6918. Our assistance is at no cost to you.
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