Should You Enroll in Medicare if You’re Still Working?

Key takeaways

• Learn from Tricia Sandiego how Medicare rules differ based on your work status and employer size.
• Safeguard your health care by enrolling in Medicare Part B if your company has under 20 employees.
• Maximize your benefits by reviewing Medicare options at 65 — even if you plan to keep working.

Summary

Should you enroll in Medicare if you’re still working? Tricia Sandiego breaks down what every soon-to-be 65-year-old needs to know about Medicare and employer health insurance. If you’re covered by your employer’s plan and are receiving those Medicare enrollment notices, your best move depends on your work status, employer size and whether you’re already collecting Social Security. For many, signing up for Medicare Part A at 65 is a smart step since it’s usually premium-free and may offer more coverage than your current plan.

It’s especially important to know the rules about Medicare enrollment if your company has fewer than 20 employees — Medicare becomes your primary insurance, so you’ll need to enroll in Part B to avoid penalties or gaps in coverage. Even if you plan to delay Social Security, reviewing your Medicare options can save you money and future headaches. For personalized guidance on enrolling in Medicare while still working, visit aarp.org/medicare for the latest updates and resources.

The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Full Transcript:

[00:00:00] Picture this: You’re about to turn 65, still working, covered by your employer’s

[00:00:05] health insurance, and now getting Medicare enrollment notices in the mail. Should you enroll in Medicare?

[00:00:11] It’s a good question, and the answer depends on a few crucial details about your situation and your employer.

[00:00:18] First, let’s talk about your age in this decision. If you’re already collecting Social Security when you turn 65, you’ll

[00:00:25] automatically be enrolled in Medicare Part A, which covers hospital stays, and Medicare Part B, which covers doctor visits, unless you decline it.

[00:00:36] Part B monthly premiums will be deducted from your Social Security check. That’s because Social Security is designed to work together with

[00:00:44] Medicare to streamline the process and to prevent gaps in coverage. But if you’re still working and not enrolled in Social Security,

[00:00:52] because say you’ve decided to wait until you’re 70 to take it, you usually have to make a choice.

[00:00:59] Even if you have health insurance through an employer, you may wanna sign up for Part A when you’re first eligible at 65.

[00:01:06] The reason most people take Part A is that it’s premium-free, meaning no monthly payments.

[00:01:12] Also, Medicare may just offer better coverage than your employer. For those of you who will have Health Savings Accounts, there are additional

[00:01:21] rules you will need to consider. So enrolling in Part A isn’t an automatic process.

[00:01:27] You will have to do this manually. Go to My Social Security to apply or check on your status.

[00:01:34] Now let’s talk about Part B and Part D, medical insurance and prescription drug coverage.

[00:01:41] This is where the size of your employer matters. If your employer has 20 or more employees, you can delay enrolling

[00:01:49] in Medicare Part B and Part D without paying a penalty later. If your employer has fewer than 20 employees, Medicare becomes your primary

[00:01:59] insurance, and you must enroll in Part B at 65 to avoid gaps in coverage or penalties.

[00:02:07] Knowing the rules now, and there are a lot of ’em, can save you money and stress later.

[00:02:13] If you have a situation that we didn’t cover in this video, you can find more on enrollment or other Medicare news at aarp.org/medicare.