Medicare at 65 and Working? What Should You Do?

As our population continues to grow, more people are ending up working past the age of 65. Whether it’s a need for savings, to continue staying busy, or other reasons, the fact is the number is growing. According to the U.S Bureau of Labor Statistics, by 2026, the share of people ages 65 to 74 in the workforce is projected to reach 30.2%. To put this number in perspective, in 1996 the number was around 17.5%. With this percentile growing, what should seniors aging into Medicare do?

Will You Face A Surcharge Penalty?

Your Medicare eligibility starts at 65. The sooner you apply, the easier it is to avoid premium surcharges. This might seem odd for someone who might be working, but those in this category get some slack. If you don’t sign up in the seven-month window surrounding your 65th birthday, you risk a 10% surcharge on Medicare part B premiums for every year you go without coverage. However, workers who have coverage under a group health plan don’t have to worry about enrolling in Medicare as soon as they turn 65. If this applies to you, once you leave your job or your employer stops offering coverage, you receive a special eight-month period to sign up for Medicare called a Special Enrollment Period, or SEP. A Special Enrollment Period is time outside the yearly Open Enrollment Period in which you can sign up for health insurance.

You Might Still Consider Medicare If…

Even if you have group health insurance under your employer, it can still be a good idea to sign up for Medicare right at 65. Is your current plan subsidized? Is what you’re paying for group coverage worth it? How do your benefits look compared to if you were on a Medicare plan? These are all good questions to ask yourself when deciding on if you should go ahead and get a Medicare plan at age 65.