Working Past Age 65
Here are a few things to consider:
If you’re planning on working past age 65, you may be wondering whether you should stay with your employer’s health plan or enroll in Medicare. The answer mostly depends on the size of your employer, as well as the cost and coverage of their health plan.
Let’s look part-by-part at how your decision to work past age 65 is impacted by Medicare’s rules.
Video: Working Past Age 65
If retirement isn’t in your plans just yet, here are a few things to keep in mind. (Length: 00:02:35)
Medicare Part A
(Hospital Insurance)
Most people benefit by enrolling in Medicare Part A at age 65, whether or not they plan to continue working. You pay no premiums, and enrolling as soon as you’re eligible will help you avoid gaps in coverage later.
Medicare Part B
(Medical Services)
Depends on the size of the company you work for:
Large Group Employer (20+ employees)
Your employer’s plan is your primary health coverage. You can delay enrolling in Part B without a late enrollment penalty or lapse in coverage. When you leave your job, you have eight months to sign up for Part B under a Special Enrollment Period.
Small Group Employer (<20 employees)
Medicare is your primary health coverage, and your employer’s plan is secondary.
This means that your employer’s plan won’t pay for anything covered by Medicare. Because you may pay a penalty if you don’t sign up for Part B when you’re first eligible—and there could be a delay in coverage, too—it’s best to sign up for Parts A, B and D at age 65.
Word to the wise
If you work for a large company, compare your current coverage and costs with Medicare. You may find you’re better off staying on your employer’s plan.
Medicare Part C (Medicare Advantage)
When you do decide to enroll in Medicare, you could opt for a Medicare Advantage plan. Offered by private insurance companies, like Cigna Healthcare®, these plans also usually come with Part D benefits and provide coverage for many things Original Medicare doesn’t.
Medicare Supplement Insurance
If you choose to buy this insurance, you can do so during your one-time, six-month Medicare Supplement Open Enrollment Period, which starts when you enroll in Medicare Part B at age 65 or older. This is the only time companies must sell you a policy despite your health history or condition. If you wait until after your open enrollment period, or your policy lapses, you might not be able to buy another policy if you have a preexisting condition.
What about your spouse?
If your spouse is covered by your employer’s plan, you’ll have to consider what choices your spouse would have if you switched to Medicare. These may include COBRA or purchasing individual coverage like a Cigna Healthcare IFP plan in the private market or through a government exchange at www.healthcare.gov.
If you have coverage through your spouse’s employer—
Your situation depends on the size of your spouse’s employer:
20+ Employees
As long as your spouse continues working, you’ll be covered through their employer’s plan until you decide to enroll in Medicare.
<20 Employees
To ensure you have sufficient health coverage, you should enroll in both Parts A and B when you turn 65. In this case, Medicare pays before the employer’s insurance, which becomes secondary.
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