Working Past 65 With Medicare
There are important decisions to make for those working past 65 with Medicare. Do you need Medicare Part B? Will you have a penalty for taking it later? What counts as a valid reason not to take Medicare Part B? Read below for the details.
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Do you need part B if you or a spouse are still working?
Most people need to enroll in Medicare part B when they turn 65. There are some exceptions however. One of the more common exceptions is for those working past 65 with Medicare. There are actually 3 factors to think about when making this determination
- If you are working and getting coverage through your employer, you can delay part B in most cases. The key is that you need to be working and getting coverage. Both must be happening in order delay enrolling in part B.
- Getting coverage through a working spouse is also a valid reason not to take Medicare part B. Keep in mind, the spouse must be actively working.
- The employer is 20 or more employees. In both situations above the person must be getting coverage through an employer of 20 or more employees. If the employer has less than 20, part B of Medicare should be elected ast age 65
- More on the 20 thing: This has always been the rule but it was rarely enforced in the past. As a result, people working with coverage through an employer of less than 20 would often waive part B and have no issues. In the last few years, this rule is being enforced which can lead to medical claims being denied.
Working past 65 with Medicare: Cobra and other mistakes
It is very common for people to think they do not need to enroll in Medicare B if they have COBRA. COBRA is not a valid waiver for enrolling in Medicare part B. Keep in mind, you or your spouse must be working and getting coverage. People with COBRA are not actively working.
Getting coverage through an employer other than the one your actively work for is also an issue. If you are work and have coverage or coverage through a working spouse, the coverage must be with the current employer. For example, Mary is working and then loses her job. She enrolls in COBRA and then immediately gets employment somewhere else. She is actively working and has coverage but not through the employer she currently works for.
Working past 65 with Medicare: VA coverage
VA coverage is a waiver for Medicare Part D. It is not a waiver for Medicare B. The standard rules will apply for those with VA coverage.
What happens if I didnt take B when I should have?
You likely pay a penalty when you do enroll in Medicare Part B. The penalty is 10% of the Medicare part B premium for every year you didnt take B. The bigger issues can be enrolling in B. If you missed the special election period for part B, you will need to wait for the part B general election period . The Part B general election period runs from January 1 through March 31 every year for a July 1 start date. The special election period for Part B runs 8 months form the time you retire or lose group coverage. CLICK TO LEARN HOW TO ENROLL IN DELAYED PART B
How much do agents make for Medicare enrollments? 2022 Medicare Advantage and Part D max compensation