Written by: Vanessa Jerusalimiec (*Amsive Digital) | Reviewed by: Shelley Wyant | *MHP partners with Amsive Digital on news content
What You Need to Know About Medicare When Retiring After 65
At age 65 you have the option to retire, collect Social Security benefits, and enroll in Medicare. But not everyone retires at 65. If you’re late to retire, here’s what you need to know about Medicare and your employer-sponsored health insurance.
Do You Have to Retire to Get Medicare?
You’re eligible for Medicare as soon as you turn 65, whether or not you are working. Your eligibility is based on your age, not your employment status. You can enroll in Medicare as soon as you’re eligible, even if you’re still working.
Do You Have to Enroll in Medicare at 65?
Are you wondering when to apply for Medicare if you are still working? If you have employer-sponsored health insurance, you might not have to enroll in Medicare when you turn 65. It’s all based on the size of your company.
If you work for a company with 20 employees or more, you don’t have to enroll in Medicare at 65. Instead, you can keep using your employer insurance, and enroll in Medicare when you retire. You’ll have a Special Enrollment Period when you retire, and you won’t have to pay any late enrollment penalties.
If you work for a company with less than 20 employees, you may need to enroll in Medicare when you turn 65 to keep your health care coverage. Even if you’re working, Medicare will become your primary health insurance.
How Does Medicare Work with Employer Insurance?
Adults over age 65 who are still working can be simultaneously enrolled in both Medicare and employer-sponsored insurance. These plans can work together to give you more comprehensive healthcare coverage.
- If you work for an employer with more than 20 employees, your employer-sponsored insurance pays first, up to the limits of the plan coverage. Medicare pays second and can cover most or all of the remaining costs.
- If you work for an employer with less than 20 employees, you’ll need to enroll in Medicare Part A and Part B as soon as you turn 65. Medicare will pay first, up to the limits of the plan coverage. Your employer-sponsored plan pays second, giving you additional coverage. Healthcare plans for small companies with less than 20 employees may deny coverage until you are fully enrolled in Medicare.
Should You Enroll in Medicare at 65?
Medicare Part A
When you turn 65, you may be eligible for premium-free Medicare Part A. This covers inpatient hospital care, home health care, and skilled nursing facility care. You will be eligible for premium-free Part A if you paid Medicare taxes for 40 quarters, or 10 years. Do you qualify for premium-free Part A? It’s a good idea to enroll in Medicare as soon as you turn 65. It won’t increase your healthcare premiums, and you can get added coverage.
Medicare Part B
If you’re working past 65 and your employer has more than 20 employees, you may choose to wait to enroll in Medicare Part B. Monthly premiums start at $174.70, so you may choose to stay with your employer-sponsored insurance. However, if your employer has less than 20 employees, you’ll need to enroll in Medicare Part B as soon as you turn 65.
Will You Be Automatically Enrolled in Medicare at 65?
When you retire and apply for Social Security retirement benefits, you might be automatically enrolled in Medicare. Once you’re approved for Social Security, you’ll be enrolled in Medicare Part A. And if you’re getting Social Security benefits for at least four months before turning 65, you will be enrolled in both Medicare Part A and Part B.
Working past 65? You will need to apply for Medicare Part A to make sure you’re getting the right healthcare coverage.
How to Enroll in Medicare
Here’s how to enroll in Medicare when moving from an employer-sponsored health insurance plan to a McLaren Medicare Plan if you’re late to retire.
- First, enroll in Original Medicare Part A and Part B. You can enroll online at the Social Security Administration website. This will only take a few minutes, and you’ll get your Medicare card in the mail within a few weeks.
- After you have your Medicare number, you can enroll in a McLaren Health Plan. By enrolling in a McLaren Medicare Advantage plan, you get added benefits such as dental, vision, and hearing coverage. You can also select a McLaren Medicare plan that includes prescription drug coverage, transportation to healthcare appointments, chiropractic services, and more.
If you're a Michigan resident considering Medicare, McLaren Health Plan has you covered with a variety of Medicare plans offering extensive benefits. Learn more about how our plans are specifically designed to support your health journey in Michigan.
Learn About Our Michigan Medicare Options