Employers with 20 or More Employees
Working Past 65
If you’re working past 65, it is important to understand Medicare’s enrollment periods, processes and timelines.
If you plan to work past age 65, it’s important to understand your Medicare enrollment responsibilities to avoid gaps in coverage or late enrollment penalties.
Medicare Part A
Most people will enroll in Medicare Part A when they turn 65 because they qualify for premium-free benefits and would receive benefits if they were hospitalized.
If you haven’t already enrolled in Medicare Part A, you should apply as soon as possible.
Important Note: You should not enroll in Part A if you are funding a Health Savings Account (HSA). When you eventually enroll in Part A, your coverage will be retroactive six months from your application date. Any HSA contributions made when enrolled in Medicare Part A would be subject to tax penalties, interest and excess contribution fees.
Medicare Part B
If you are leaving your employer insurance, now is the time to apply for Medicare Part B.
Applying for Part B should be completed at least 60 days prior to when your employer coverage will end. See below for more detailed instructions.
How To Apply for Part B
When applying for Part B after age 65, you are required to submit two forms. These forms are required to successfully enroll in Part B.
Follow the steps below to properly prepare to apply for Medicare Part B:
Note: If applying for both you and your spouse, each will require a completed copy of the following forms.
Contact your employer and request a CMS L564 to be completed on you and/ or your spouse’s behalf.
Complete the CMS 40B. This is your formal enrollment request for Medicare Part B.
Helpful tip: Please download/ print the sample CMS 40B to ensure proper completion.
You can enroll in Medicare Part B by:
- Online: Go to www.SSA.gov, click on “Medicare” and select “Sign up for Medicare.” Next, select “Sign Up For Part B Only.”
- In Person: Schedule an appointment with your local SSA office for assistance with your application. Keep in mind that appointment availability may be 30 days or more from the day you call.
- By Mail or Fax: Submit your application via fax or mail.
For guidance in applying for Medicare Parts A and B, schedule a meeting with MP Group today.
Medicare and COBRA - Must Be Enrolled In Parts A and B
It is important to understand that COBRA after age 65 works differently than before age 65. Specifically, after age 65, COBRA cannot be the primary payer of claims, nor is it considered creditable coverage for Medicare Part B. Therefore, it is extremely important that you enroll in Medicare Parts A and B as soon as possible when being offered COBRA.
These rules apply regardless of who is paying for your COBRA.
COBRA, Medicare and Working Past 65
If you worked past 65 and you are offered COBRA, there are a few scenarios.
- You have Medicare Part A only and are offered COBRA. You need to enroll in Part B immediately because Medicare Parts A and B are your primary payers for your medical care. COBRA, which is a secondary payor only, would pay after claims are processed by Medicare Parts A and B. COBRA is creditable for Part D RX coverage; therefore, you would not need to enroll in a Part D plan.
- You have Medicare Parts A and B and are offered COBRA. Medicare Parts A and B would be the primary payor of Medical claims and COBRA would provide creditable prescription drug coverage.
Note: Whenever you leave your COBRA or employer plan, you have 2 full months from the end of your coverage to enroll in a creditable Medicare Part D plan and avoid a lifetime penalty.
To learn more about COBRA, watch the video below:
Remaining On Your Employer Plan After Age 65
If you are over 65 and will continue receiving health coverage through your employer group plan, your Medicare enrollment primarily focuses on Part A.
Medicare Part A
Enrolling in Part A offers an extra layer of protection by providing secondary hospital coverage with no additional premium. Please be reminded that Part A is premium-free if you or your spouse have worked at least 40 quarters (10 years) and paid Medicare taxes.
Enrolling in Part A
There are two ways to enroll in Medicare Part A:
- Automatic Enrollment
If you’re already receiving Social Security benefits, you’ll be automatically enrolled in Part A and will receive your Medicare card in the mail. - Manual Enrollment
If you’re not yet receiving Social Security benefits, you can enroll in Part A yourself using one of these options:
Online: Visit SSA.gov to apply. You’ll need to create or log into your Social Security account to complete the process.
In Person: Schedule an appointment at your local Social Security office for in-person assistance.
By Phone: Call the Social Security Administration at 800-772-1213 to enroll by phone.
Medicare and Health Savings Account (HSA)
If you contribute to a HSA, you should NOT enroll in Medicare Parts A and/ or B.
To avoid penalties, you must delay Medicare enrollment until a future date when you decide to transition in to Medicare.
Medicare and HSA Contributions
If you enroll in Medicare Parts A and/or B, while funding an HSA, you will be penalized by the IRS. IRS guidelines prohibit you from funding an HSA while having any parts of Medicare.
If you have an HSA and are considering enrolling in Medicare, it’s important to plan accordingly.
Note: When applying for Part A after age 65, your Part A coverage will automatically be backdated 6 months from the date of the application. This can impact the timing of your HSA contributions.
To learn more about HSAs and Medicare, watch the video below:
Late Enrollment Penalties
Failing to enroll in Medicare Parts B and D on time, or going without coverage after turning 65, can result in lifetime penalties. These penalties are added to your monthly premiums and increase the longer you delay enrollment.
You must enroll in Medicare Part B during your Initial Enrollment Period (IEP) unless you have creditable employer coverage.
If you did not enroll when first eligible, the penalty is an additional 10% for each 12-month period you go without coverage. This is added to your monthly Part B premium for as long as you remain enrolled in a Part B plan.
To avoid Part D penalties, you must maintain creditable prescription drug coverage after turning 65. If you go more than 63 days without creditable coverage, you’ll be subject to a Part D late enrollment penalty.
The penalty is calculated by multiplying 1% of the national base beneficiary premium by the number of full months you went without coverage after becoming eligible for Part D. This penalty is added to your monthly Part D premium for as long as you remain enrolled in a Part D plan.
Need Help With Your Medicare?
Insurance Masterminds of MP Group eases your burden of exploring, choosing and enrolling in a Medicare insurance plan that’s right for you based on your unique circumstances. Remember, there is no cost for you for our services.
