How do you delay Medicare if you are still working at 65?

The main reason to delay Medicare coverage at age 65 is if you are not retired and still have comprehensive coverage from your employer.

Another reason is to continue funding a Health Savings Account (HSA). Once you enroll in Medicare, you are no longer eligible to contribute to an HSA.
It is important to consult your employer or union benefits administrator to understand how your insurance works before making the decision to enroll or defer Parts A and B. Some employer coverage may require that you enroll in Parts A and B in order to maintain full coverage with your employer.
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In order to defer both Medicare parts A and B, one must:

• Have health insurance coverage from their employer or spouses employer (with 20 or more employees to fully defer)
• Defer enrollment in Social Security Benefits
• Have creditable prescription drug coverage with employer plan

​To enroll in Social Security and Part A, and Defer Part B only:

• When you enroll in Social Security, you are enrolled in Medicare Part A
• Part A is free for most individuals
• You must have health insurance from your employer or spouses employer
• You must have creditable prescription-drug coverage with employer plan

How do you decide?

• Talk to your employer or benefits administrator before your Initial Enrollment Period begins (3 months before your 65th birthday) to understand how your plan can work with Medicare.
• If your employer provides health insurance and has less than 20 employees, you will typically still enroll in Parts A and B during your Initial Enrollment Period. Medicare will be your primary insurance, and your employer’s insurance your secondary. If creditable prescription drug coverage is not provided by your employer’s health insurance, you should also enroll in Part D to prevent late fees.
• If your employer provides health insurance, creditable prescription drug coverage, and has more than 20 employees, you can choose to delay both parts A and B, or just B. The main reason to delay both parts is if you have an HSA you are still contributing to. If you are not contributing to an HSA, consider enrolling in Part A and delaying Part B until retirement.

When you do retire…

• A Special Enrollment Period (SEP) will apply. You will have 8 months to sign up for Part A and B (Original Medicare), or Part B if you are already enrolled in A, starting the month after employment or group health insurance ends (whichever is first).

*Note: many employees elect to use COBRA for their insurance 18 months after retirement. The Special enrollment Period starts when you retire, NOT when your COBRA period ends. Late enrollment penalties for Medicare are significant, so make sure to enroll within the 8 months after retiring.

• Plan ahead. Consider enrolling in Parts A and B the month before you retire, with coverage starting at your retirement. This will prevent any lapse in coverage.
• You will have 2 months from the end of your employer coverage to enroll in a Prescription Drug Plan (Part D) a Medicare Advantage Plan, or Medicare Supplement Plan (Medigap). If you wait until the end of the 8-month window to enroll in Parts A & B, you will miss the window to enroll in any additional insurance, and have to wait for the next applicable enrollment period. Original Medicare is not designed to be fully comprehensive insurance, so it is important to review your options and enroll during this time frame.
• Once you enroll in parts A&B, you will receive your Medicare card in the mail in about 3 weeks.

How to Enroll/Defer

Visit the Social Security Website: https://www.ssa.gov/benefits/retirement

for further guidance on enrolling or delaying your Medicare Benefits. You can complete an application online.

You can also apply:

• By phone - Call 1-800-772-1213. (TTY 1-800-325-0778) from 7 AM to 7 PM Monday through Friday.
• In person - Visit your local Social Security office. (Call first to make an appointment.)

For Medicare specific questions:

visit www.Medicare.gov

call toll free 1-800-633-4227 (TTY 1-877-486-2048

If you have further questions, please do not hesitate to reach out. When it comes to Medicare planning, it is important to take the time frames seriously, as hefty, and sometimes lifelong penalties can occur when enrolling late.
​To schedule a Medicare Overview Consultation, please email Alicia at adion@octo-capital.com or call 248-731-7729