​One of the most common and misunderstood questions I hear is whether you need to elect Medicare when you turn 65. The answer depends on your individual situation.

 

Many people who are still working at age 65 assume they'll simply stay on their employer health plan and deal with Medicare later.  While that may be the right decision, it should never be made without understanding how your current coverage works with Medicare. In some cases, remaining on an employer plan can make sense. In others, Medicare may provide better coverage, lower costs or both. Failing to evaluate your options can lead to costly mistakes, including late enrollment penalties or limited choices in the future. 

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Before you make a decision, take the time to compare your current plan vs. Medicare options, verify how your current coverage works with Medicare, understand enrollment timelines and deadlines and evaluate both the short-term costs and the long term financial impact.​​

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Can you delay Medicare without penalties?

 

If you or your spouse are still actively working and you are covered by an employer sponsored health plan, you may be able to delay certain parts of Medicare without penalty. Before making that decision, it's important to confirm whether your employer coverage qualifies for delaying Medicare enrollment, how Medicare coordinates with your employer plan, whether your prescription drug coverage is considered creditable, and how the size of your employer may impact Medicare options.

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Remaining on your employer insurance makes sense if;

• Your employer plan offers strong benefits at a lower cost than Medicare

• Your provider network is better under your current plan

• Your prescription drug coverage is more favorable

• You want to contine contributing to a health savings account (one important consideration is that once you enroll in Medicare, you generally can no longer make contributions to an HSA)​

Medicare might be the better choice if;

• Your employer plan has high premiums and out-of-pocket costs, 

• You want more predictable health care expenses in retirement

• Medicare provides broader provider access

• Your overall costs would be lower with Medicare coverage​​​

You don't have to automatically elect Medicare at age 65, but you do need to make an informed decision. 

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I work with individuals approaching 65, employers with transitioning (T65) employees, benefit consulting firms and financial advisors navigate these decisions with confidence. 

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