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Medicare: Health Insurance for Employees Over 65

Question:

My employee is turning 65 but continuing to work. What do I tell them about Medicare?

Answer:

There is a lot of misinformation out there regarding retirement health insurance and steps individuals need to take. Let’s clear it up!

Typically, if an individual is on a creditable employer health plan and they decide to work past age 65, they can wait until they retire to enroll in Medicare. In this circumstance, these individuals will have a Special Enrollment Period when they eventually choose to retire or leave their group coverage.

If your organization has more than 20 employees, there is no need for someone who is over 65 and still working to enroll in Medicare Part B (Medical Insurance) yet. This is because the employer plan covers this.

Many people choose to enroll in Medicare Part A (Hospital Insurance) when they turn 65. Individuals pay taxes on this coverage if they or their spouse worked 40 quarters throughout their lives, so there is typically no cost associated with it in retirement. Your employees should be aware, though, that they are no longer able to contribute to their Health Savings Account (HSA) once they enroll in Medicare Part A.

Your employees should also note whether their health insurance plan is both Medicare Part B and Part D creditable. This means that their coverage is at least as good as the Medicare plan they enroll in.

Thank you to RetireMEDiQ for sharing their expertise on Medicare. RetireMEDiQ is an independent health plan advisory service that offers trusted guidance to individuals in need of insurance options upon retirement. If you have any questions about this article or for RetireMEDiQ, you can view their website here or contact Marisa O’Neill at moneill@retiremediq.com.