On September 14, 2022

Still working at 65? Here’s what you need to know about Medicare

For the last half century, turning 65 stamped the time when you would leave your job, file for Social Security, begin your pension and enroll in Medicare. But is that the case anymore?

The retirement environment has changed. Full retirement age is now 66 or 67, corporate pensions have been replaced by 401(k) plans, and many baby boomers are working well into their 70s and beyond.

One thing that hasn’t changed is the eligibility age for Medicare. It is still 65 and most are required to enroll at 65 or face penalties.

There is an exception for those who are sill working (or spouse is still working) and covered by an employer group plan that covers 20 or more employees. In this case, you can continue to be covered by your employer (but check to be sure).

If you or your spouse don’t qualify for this exception and you don’t enroll in Medicare at age 65, you may be charged a late enrollment penalty. The penalty will be added to your regular Part B premium and continues for the rest of your life. The penalty is 10% of the premium for every 12 months you should have had Part B but didn’t.

The other consequence is greater – which is not having health insurance. Medicare is the primary payer of health care bills for everyone over 65. If you are not covered by a large company plan, the bill will be sent to Medicare — and if you don’t have Medicare, then Medicare won’t pay the bill. Also, any other individual policy you may have won’t pay the bill either because it is Medicare’s responsibility.

If you are still working past age 65, you should speak with your benefits administrator and current insurance company. Even if you stay with your current plan, you may want to apply for Medicare Part A which has no premium. The one thing you can’t do is ignore Medicare when you turn 65.

Kevin Theissen is the owner of HWC Financial in Ludlow.

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

Lessons abroad, Vermont recharge

June 12, 2024
Building a Killington Dream Lodge, part 17  What a difference a year can make. I was really excited about the changes taking place in our Killington ski lodge while I was away attending Schiller College Paris my sophomore year and Graz Center for the second summer. Meanwhile, in Vermont once the roof was done, Dad…

June: ‘bloom whereyou are planted’

June 12, 2024
June is usually thought of as the beginning of summer. School is out, we open our summer houses and maybe plan a vacation. I was given a book called “The Big Book of 30-Day Challenges” written by Rosanna Casper. It sat on a table for a long time with me just looking at it every…

Summer vacation for students in the 50s

June 12, 2024
Whether it’s 2024 or 1954 kids share the enthusiasm that comes from being on school vacation during the summer months. However, the way that their free time is spent has few similarities. As often happens when my weekly breakfast group gets together we take a “look back” at various things and recently we recalled what…

Secrets of early summer

June 12, 2024
Shhhh. Don’t tell anybody, but this is one of my all time favorite weeks of the year. The one where I make myself so exhausted that I am asleep before my head even hits the pillow. The one where I am up with the sunrise for no reason except that I cannot wait for the…