There are a some important things to think about for those on Medicare and working past 65. This can be a tricky question to answer. Do you need Medicare Part A or Part B? Will you have a penalty for taking them later? What counts as a valid reason not to take Medicare? Read below for the details.
Medicare Part A
We will keep Medicare Part A brief as it is free to most people as long as they have worked and paid Medicare taxes for a period of 40 quarters (10 years). In other words, why would you not sign up for it; it is free and can be sued in addition to employer coverage. You can sign up for premium free Part A up tp 3 months before turning 65 or any time after you turn 65.
Those who do not qualify for premium free Part A will follow similar rules as enrollment into Part B. Please read below to learn more:
Do you need part B if you are still working
Many people need to enroll in Medicare Part B when they turn 65. Although there are some exceptions. One of the most common exceptions is for individuals working past 65. Because Part B is not free to most people, there are a few things to consider when making this decision:
Those who are working or have a working spouse and getting coverage through their employer can delay Part B enrollment in most cases. The key is that the individual must be working and getting coverage. Both must be happening in order delay enrolling in part B.
Receiving coverage through an actively working spouse is also a valid reason not to enroll in Medicare Part B.
The number of employees matters
Additionally, the employer must have 20 or more employees. In either situation above, the person must be receiving coverage through an employer of 20 or more employees. If the employer has less than 20, Part B of Medicare should be elected at age 65.
The 20 or more employees has always been the rule. although in the past, it was rarely enforced. As a result, people working with coverage through an employer of less than 20 often waived part B without issue. In the last few years, this rule has been enforced. This can lead to the denial of medical claims.
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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 Part B if they have COBRA. COBRA is not a valid waiver for delaying Part B enrollment. Keep in mind, either the individual or their spouse must be working as well as getting employer coverage. People with COBRA are not actively working.
Getting coverage through an employer without actively work for them is also an issue. Those who work and have coverage or coverage through a working spouse, must be covered through their current employer. For example, if John is working and loses his job and enrolls in COBRA and then immediately gets a job somewhere else. Although he is actively working and has coverage, it is not through the employer he is currently working for.
VA coverage
VA coverage is a waiver for Medicare Part D. It is not a waiver for Medicare B. The standard rules apply for those with VA coverage.
What happens if someone neglects to enroll in Part A and or Part B
Those who do not enroll in Medicare when they should are likely to pay a penalty. The penalty is 10% of the Medicare Part A or Part B premium for each year they didn’t sign up and did not have creditable coverage (through employment).
Watch a YouTube video on Medicare enrollment periods to learn more
Those who lose coverage due to retirement or a loss of group coverage qualify for an SEP. The special election period for Medicare runs 8 months from the date individuals either retire or lose group coverage.
Individuals who miss their IEP and SEP for either Part A and or Part B have to wait for the Medicare general election period . This enrollment period runs from January 1 through March 31 each year. Medicare benefits begin the month following the month of enrollment.
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