Retirement · Working past 65
Working past 65.
If you are still working at 65 and have employer health coverage, you may be able to delay Medicare enrollment without penalty. Whether you should is a different question.
Company size matters.
If your employer has 20 or more employees, your employer health plan is generally the primary coverage and you can delay Medicare Part B enrollment without penalty until you stop working. If your employer has fewer than 20 employees, Medicare typically becomes primary coverage at 65 and you should enroll in both Part A and Part B even if you keep the employer plan.
Get the rule confirmed in writing.
Talk to your HR department before your 65th birthday. Get written confirmation of how the company's plan coordinates with Medicare. Misunderstanding this rule is one of the most common ways people end up paying lifetime late enrollment penalties.
Part A is usually free — take it.
If you have paid into Medicare through your work history (most people have), Medicare Part A is premium-free at 65. Even if you delay Part B because you have employer coverage, enrolling in Part A is usually beneficial because it provides secondary hospital coverage at no cost. The exception is if you contribute to a Health Savings Account — Part A enrollment ends HSA contribution eligibility.
When you stop working, the clock starts.
Stopping work or losing employer coverage triggers an 8-month Special Enrollment Period during which you can enroll in Part B without penalty. Missing this window can mean lifetime late enrollment penalties — a 10% premium increase for every twelve months you went without Part B coverage. The window is real and limited.
Next step
Plan your transition off employer coverage.
The rules are specific and the penalties are permanent. We figure out the right timing for your specific employer plan and your specific situation.