Should I Delay Medicare? Employer Plans vs. Medicare
Should I drop my employer insurance and go on to Medicare? Well, this can be a complicated question, and there are several critical factors that you want to consider before making your decision, and that is precisely what I'm going to break down today.
More and more people are choosing to work past age 65. Suppose you work for an employer that offers a medical plan. In that case, you may be wondering if you're better off keeping your employer-sponsored medical insurance or dropping your employer plan and making the transition to Medicare. At the same time, the answer to this question isn't always straightforward; I do have a few essential tips that I can share with you and some things that you'll want to consider before you decide.
I will cover those who can delay their Medicare enrollment altogether even past age 65 without penalty, which should enroll in Medicare at age 65 even if you are still working. What are the most important things to consider before choosing to drop your employer plan and move on to Medicare?
Medicare is a government program for people aged 65 and over and specific people under 65 with disabilities. For many people, if you don't enroll in Medicare when you're first eligible at age 65, you could face significant penalties down the road. However, Medicare isn't free, so in 2022 most people will pay a standard premium of $170.10 per month just to be enrolled in Medicare Part B. If you're still actively employed. You have health insurance through your job or if your spouse is actively employed. You have health insurance through their employer; then, you may be able to delay your Medicare enrollment without any penalty.
The critical takeaway is that if you're actively employed, and you have employer-sponsored health insurance, or your spouse is actively employed. You're covered under their employer health plan; then, you can typically delay your Medicare enrollments without any penalty. You can choose to enroll in Medicare at any time during that active employment. Up to 8 months after the employer-sponsored health plan ends, you must use a particular enrollment period to enroll in Medicare Part B.
This rule applies to active employees, so having retiree benefits or cobra coverage doesn't qualify you to delay Medicare without penalty you must be actively employed, or if you're covered under your spouse plan, your spouse must be actively employed now one thing that you'll want to consider is the size of your employer if your employer has 20 or more employees than your employer plan is always primary to Medicare.
If you choose to delay Medicare while you're still working, no problem; however, if your employer has fewer than 20 employees, then Medicare is meant to be primary, and the employer plans secondary, so if you fall into this category, you're still working past age 65. Still, your employer has fewer than 20 employees. We advise going ahead and enrolling in Medicare parts A&B to avoid any claims issues down the road now.
I know all of that that I just reviewed can be tedious and a little confusing, so definitely take some time to review those documents that I linked. They can shed some more light and answer some questions that you may have about that. Still, if you understand when you can delay your Medicare enrollment without any penalty, the next question people usually ask is, should I delay my Medicare enrollment if I'm still working? A lot of people are confused by this. They're wondering how Medicare coverage is going to compare to their employer-based health plan and whether it's worthwhile to drop their employer plan for Medicare or not.