Enroll in Medicare or Continue Employer Health Coverage?

What if you are turning 65 but still working and have health insurance coverage through your employer? More and more people are working passed the age of 65, especially because the age of collecting full Social Security Benefits keeps getting older, now at age 67 for those turning 65 in 2025. If you are still working in your career and have employer-provided health insurance, you have to find out a few things.

• First confirm with your employer that your coverage continues beyond age 65. If so, you can compare the costs and benefits of your current plan to Medicare and available plans. Compare what it costs out of your paycheck for the employer coverage to your premium cost of Part B, which is on average $185/month (2025) unless you will be assessed an IRMAA. This is an extra charge added to your Part B and Part D premium cost if you made more than $106,000(filing single) or $212,000(filing joint) on your tax return 2 years ago. You must also calculate what costs there are associated with the Medicare Plan choices.

• Sometimes Medicare is a better deal as far as cost and benefits. Sometimes sticking with the employer coverage is better, especially if you are insuring a spouse or children with your employer coverage. Medicare is only single coverage for those who qualify.

  
  

Delaying enrollment in Medicare might be in your best interest. You can do so without penalty typically as long as your employer has at least 20 employees, but some smaller employers may continue your coverage as well. You can then enroll in Medicare during a special enrollment period when your employer coverage ends, like when you retire. You may voluntarily enroll in Part A only. Some people do this to get in the system and assigned a Medicare number. Part A (Hospitalization) is typically free as long as you or your spouse worked for 10 years (40 quarters) and payed into the Medicare system.

It’s generally recommended to enroll in Medicare during the initial enrollment period when you turn 65, if you are retired, self-employed or without health coverage from your employer. Medicare Plan Brokers can help you understand your options. 631-337-3625