Answers to healthcare questions for those planning to work after age 65
By Caroline Ward
Age 65 used to be the “magic age” for retirement and receiving Medicare health insurance. However, many people today are working past 65 to accrue additional income to make retirement a more affordable option.
If you are planning to work past 65, consider these points regarding your health insurance:
Does your company have more or less than 20 full-time employees?
Your company is only legally required to provide health insurance for employees age 65 and older if they have 20 or more full-time employees.
When do you need to sign up for Medicare?
- If you WILL NOT receive group benefits, you need to sign up for Medicare Part A (hospital) and Part B (medical) when you turn 65. You also have the option to sign up for Medicare Part D (prescription drugs).
- If you WILL receive group benefits, you only need to sign up for Medicare Part A when you turn 65. You do not need to sign up for Parts B and D.
Will you contribute to a health savings account after 65?
If yes, you will need to delay signing up for Part A until you retire.
Will you receive Medicare penalties if you delay enrollment in Part A or B?
No. At the date of your retirement, you have eight months to sign up for Medicare Parts A and B. However, you only have 63 days to sign up for Part D, so this has a major effect on your Medicare decisions.
What happens when you retire and lose group benefits?
- If your company offers a retiree group Medicare plan, you need to compare the retiree plan with your options on the private market. You may choose to stay with the retiree plan or purchase your own plan. Although, if you drop the retiree plan, you cannot get it back.
- If you choose a Medicare plan on the private market, you need to evaluate three options: (1) Original Medicare, with or without a drug plan; (2) Original Medicare plus a Medicare supplement, with or without a drug plan; (3) Medicare Advantage, which includes prescription drug coverage.
As you can see, Medicare is not a one-size-fits-all insurance plan. That’s why working with a professional is vitally important.
