Medicare Insurance for People Over 65

Medicare Insurance for People Over 65: What Are My Options?

Despite the fact that all Americans qualify for Medicare after turning 65, most don’t have the information they need about the program by the time they’re eligible. If you’re approaching age 65, you probably have a lot of questions. Medicare doesn’t have to be mystifying. Here’s what you need to know about Medicare insurance for people over age 65.

Do I Qualify for Medicare Just Because I’m 65?

Yes! However, qualifying isn’t the same thing as being enrolled. Not everyone who is eligible for Medicare will be enrolled automatically. You need to make sure that you’re taking the right steps to get the medical coverage that you’re entitled to receive.

The Medicare initial enrollment period (IEP) for each person lasts for seven months. You have the period lasting from three months before you turn 65 to three months after you turn 65 to enroll. People age 65 and older who are already on Social Security benefits are automatically enrolled in Medicare Part A. If you’re still covered by an employer healthcare plan when you turn 65, you’re able to use special enrollment. People in this situation can sign up outside of the Medicare open enrollment window without penalty at any time while still covered by employer insurance. They can also enroll in Medicare within eight months of the day they stop working or their group health plan ends.

Can You Enroll in Medicare If You Have Insurance Through an Employer?

Yes! Medicare can be used as a type of supplemental insurance alongside your primary insurance. You can also choose to decline your employer insurance to switch to Medicare even if you plan to continue working. However, there are some exceptions. The law prohibits large companies from requiring their Medicare-eligible employees to switch to Medicare. However, smaller companies are exempt from this law. If you work for a company with fewer than 20 employees, you may need to jump to Medicare-only coverage.

Delaying Medicare Enrollment After Age 65

Some people over age 65 decide to delay Medicare enrollment when they already have employer-sponsored health insurance to avoid the need to pay two premiums. If you have an employer health plan when turning 65, you have three options. These options are to delay Medicare enrollment, decline employer coverage to shift to Medicare, or maintain employer coverage and Medicare simultaneously. Just remember that your employer will decide if you work for a company with the Medicare size-based exemption.

Some people choose to enroll in Medicare Part A after turning 65 even when they have employer coverage because this is the premium-free version of Medicare. That means you won’t owe a premium for Medicare health insurance as long as either you or your spouse have paid 40 quarters (a decade) of taxes toward Medicare. If you want to hang on to your employer health insurance, you can delay signing up for Medicare Part B to avoid premiums.

If you do decide to pay the premium for Part B while maintaining employee-sponsored health insurance, it’s important to know that your employer plan will be your primary insurance. That means that Medicare will only cover charges for services that aren’t covered by your primary insurance. If your employer offers a robust healthcare plan, that could put you in a position of paying extra premiums without much benefit. However, Medicare enrollment could be beneficial if an employee plan doesn’t cover much. This is why the advice about whether or not to enroll in Medicare when you have employer-based health insurance should be looked at on a case-by-case basis.

Is Medicare After Age 65 the Right Choice for Me?

Turning 65 brings some pretty big choices about medical coverage. Based on your employment situation, you may want to consider delaying enrollment to avoid paying premiums for coverage you don’t quite need yet. Making the right choice requires careful consideration. K&B Financial in Darien, IL is here to help you make sense of Medicare enrollment after 65 using our 25 years of experience in the senior healthcare marketplace. We’ll explain your options to you to help you choose the right strategy for getting the best, most affordable coverage possible. Contact us today!

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