Medicare is often thought to be a healthcare option that is only for those individuals who are no longer working. However, the reality is that not only are more people working past the standard retirement age, but Medicare still matters for this sector of the population. If you are soon approaching retirement age, but do not have any plans to stop working just yet, learn more about the Medicare process.
Sign-Up Requirement
The general requirement is that any individual who is age 65, and is eligible for coverage, must sign up once they reach the age. Yet, for working people, the rule is different. If the individual is currently working and covered under an employment or group plan, they do not need to sign up.
However, if the individual is working, but not covered under a plan, or is currently out of work, but has plans to return to the workforce, signing up is required. Per Medicare.gov, signing up for people in this group needs to occur anytime within 3 months before or after your birthdate.
Health Insurance Status
For some people, signing up for Medicare is still a good option even if they are working. The sad reality is that some employer plans pay little to nothing in healthcare coverage costs. For people in this category, if they sign up for Medicare while working, the Medicare policy could work as the primary payer for their health coverage.
As a result, Medicare would pay its planned cost share, then your work insurance plan would pay its share, and you would be left with the balance if there is anything left at all.
Working Spouse
If you are only working part-time and do not have health benefits, but your spouse is still working and has health coverage or is covered under a retirement plan, different rules may apply to you. You will not be required to sign up for Medicare once you reach 65 and you can use this plan as an additional policy.
However, keep in mind that with certain health plans, particularly those for federal workers, it is not always cost-effective to sign up and have Medicare become the primary payee, so you want to do your research.
You must get it right. Should you have any questions about signing up for Medicare while you still work, do not hesitate to reach out to a professional who can further guide you with the help you need.
