Working Past 65? What You MUST Know About Medicare

Do You Have to Sign Up for Medicare at 65?

A lot of folks think they’re automatically required to enroll in Medicare at age 65. But that’s not always true—it depends on your job and your employer’s health insurance coverage.

Here’s a key rule to remember:

• If you or your spouse are actively employed and your employer has 20 or more employees, you can delay enrolling in Medicare without facing a penalty.
• If your employer has fewer than 20 employees, you must enroll in Medicare Part A and B when you turn 65. In this case, Medicare becomes your primary insurance.

Before making any moves, talk to your HR department to verify whether your current plan is considered creditable coverage by Medicare.

Should You Enroll in Part A at 65 If You’re Still Working?

Many people think they should at least take Part A since it’s usually premium-free. However, if you have a Health Savings Account (HSA) and want to keep contributing to it, do NOT enroll in any part of Medicare. Once you enroll in Part A or B, you become ineligible to contribute to an HSA.

How to Delay Medicare Without a Penalty

If you have creditable employer coverage (typically through an employer with 20+ employees), you can delay Medicare Part B and avoid the monthly premium.

• The 2025 Part B premium is $185.00 per month.
• If your coverage isn’t creditable, you’ll need to sign up for both Part A and Part B at 65 to avoid penalties.

If you lose employer coverage later on, you have an 8-month Special Enrollment Period to enroll in Medicare Part B. Don’t wait—sign up as soon as your employer coverage ends to avoid any gaps in insurance.

When It Makes Sense to Stay on Employer Coverage

Even if you have the option to switch to Medicare, staying on your employer plan could be the smarter choice depending on your circumstances.

Here are a few common reasons why:

1. You Have a Younger Spouse or Dependents on Your Plan

If your spouse or children are also covered under your employer plan, it may be much cheaper to stay put. Finding private insurance for a younger spouse can be costly.

2. Employer Drug Coverage Is Better

Some employer plans cover expensive medications that may be more costly or unavailable through Medicare Part D. You can use medicare.gov to compare drug costs under Medicare.

3. Compare Out-of-Pocket Costs

Think about more than just premiums:

• Employer plan: What are your premiums, deductibles, and copays?
• Medicare:
  • Part B premium: $185.00
  • Part A deductible: $1,676
  • Part B deductible: $257
  • Medigap Plan G high deductible: $2,870

Sometimes, Medicare can offer better coverage at a lower cost, especially if your employer plan has a high deductible or limited provider network.

Switching to Medicare Could Save You Money

We’ve helped tons of clients compare their employer plans to Medicare—and often, the savings are significant. With Medicare, you can often:

• Pay less in premiums
• Get access to a broader range of doctors
• Customize your coverage with Medigap or Medicare Advantage plans

Medigap Plan G with a high deductible is a great option for many because it provides full coverage after the deductible of is met.

Need Help Deciding? We’ve Got You.

At Bluewave Insurance, we specialize in helping people just like you navigate Medicare confidently and save money. Whether you’re planning to stay on your employer plan or thinking about switching, we’ll walk you through every option.

Call us at 800-208-4974 to schedule a free consultation!