Turning 65 and still working? Should you take Medicare? If so, do you continue on your employer coverage? In most cases, the answer is yes.
When you turn 65, you are entitled to Medicare Part A (Hospital coverage) if you have worked for 40 quarters and paid into the system. You are also eligible for Medicare Part B but it has a premium so in most cases you won’t need to take it until you lose the employer coverage. No penalty is incurred as long as you have “credible employer coverage”.
Medicare Part A works with your employer coverage in the event you are hospitalized.
With employers with less than 20 employees, it acts as primary and your employer coverage is secondary. You will need to check with the insurance plan to verify, otherwise, you might need to take Medicare Part B or you could possibly be stuck with those costs.
With employers with 20+employees, it acts as secondary coverage to Medicare Part A. For instance, if you have a $3000 deductible on your employer insurance, then Medicare Part A is lower as the deducible would be $1,364 (for 2019).
One exception to taking Medicare Part A when you turn 65 is if you are actively contributing to an cfpHSA (Health Savings Account). You cannot contribute if you have any form of Medicare. Consult your tax advisor for more information.
The “Medicare Maze” can seem overwhelming, don’t hesitate to call us for more information.