Do I have to sign up for Medicare if I work past age 65?

The short answer is ‘Not always’… with a but.

Unfortunately, there is no easy answer for this, so I’ll try to keep it as short and simple as possible.

Traditionally, when you turn 65, it is time to sign up for Medicare. But, with rising expenses, longer life expectancy, and with the realization that and active life keeps you healthier, more and more people are opting to work longer. And this brings up three questions: “Do I have to sign up for Medicare if I work past 65?”, “Should I sign up for Medicare if I work past 65?”, and “Should I keep my employee coverage if I’m allowed to?”

If you work for a company that will continue to offer you coverage even after the age of 65, if that coverage is what is considered creditable coverage, then you do not have to sign up for Medicare.

Talk to your HR Department (or whoever it is that manages the employee health insurance for your company.) Nobody expects you to know if your insurance is creditable or not. But your HR department certainly will. When you talk to them here are a few additional questions to ask:

• Do I have to sign up for Medicare Part B in order to keep my coverage?

• Will the cost of my coverage change?

• Does the coverage itself change?

• Am I allowed to keep the coverage?

• Is it creditable coverage according to Medicare?

Be sure to ask all 5 of these questions. All 5 scenarios are not uncommon. Some companies will force you to sign up for Medicare Part B in order to keep their coverage. As a result, the coverage changes, and sometimes, how much you pay changes as well. Some companies will kick you off the insurance once you turn 65 (this is because they want the average age of the people on the insurance to stay low, in order to keep costs down). Then, some companies offer insurance, but its not creditable in the eyes of Medicare, so you will want to find different coverage, in order to avoid penalties from Medicare.

Now for the question “Should I keep my coverage?” This is where things start to fall more on you to be a good consumer, and compare and contrast your options. Get with a good independent Medicare broker, that represents more than one company, and compare your employer coverage with Medicare plans that are available in your area.  About half the time, Medicare can offer better coverage, for less money. But, things can vary widely from one person to the next, so it’s important to shop based on your needs, and not someone else’s. Be sure to talk about doctor networks, prescription drug coverage, costs (not only the monthly premium, but deductibles, and copays too!), and be sure that you talking to a broker that represents multiple companies (I know I already said that, but it’s worth mentioning again.)

Finally, a bonus question: “When do I start the process?” Don’t wait until the last minute. Give yourself plenty of time so you don’t feel rushed. Insurance is a boring subject, so if you find yourself dragging it out over a month or two, you are not alone. Start researching a good 3-4 months before the month you turn 65. So, if you turn 65 in October, start talking to your HR department in June, or July.

Good luck on your Medicare journey, and congratulations on your accomplishments. You got this!