I turned 65 in November and am still working for a company with more than 20 employees. I’m planning to retire soon (maybe in February or March), but I haven’t made a final decision yet and might wait longer. Following my CPA’s advice, I stopped contributing to my HSA in December. I live in California.
Here’s what a Medicare broker told me, and I’d like to confirm if it’s accurate:
Signing up for Part A happens automatically in my birth month, so I don’t need to do anything for that step. But in everything I’ve read, I haven’t seen this mentioned. Is this true? I didn’t receive any notice that I was signed up for Part A, which should have happened last month if it’s automatic.
I don’t need to sign up for the other parts until I’m ready to retire since I have insurance through my employer.
Because of the delay between signing up and when it takes effect, I should apply two months before retiring.
Any clarification or corrections would be appreciated!
You’ve been given some info that’s not entirely correct. You’ll only be automatically enrolled in Medicare if you’re already receiving Social Security benefits at least four months before you turn 65. Otherwise, you need to sign up through the Social Security Administration.
You can delay enrolling in Part B until you no longer have group coverage through your employer. With new rules from the BENES Act, you can now enroll in Part B early in the month before losing group coverage, and it will start the following month. There’s no longer a long waiting period if you apply in the last three months of your initial enrollment period.
Once your group coverage ends, you have a 63-day Special Enrollment Period to sign up for a Medicare Advantage plan (Part C) or a Medicare Part D drug plan. After enrolling in Part B, you’ll get a six-month Medigap open enrollment period to pick from available plans in your area. Make sure you know the differences between Part C, Medigap, and Part D plans to find what best suits your needs.
Amory said: @Adi
Private insurance isn’t run by the government. I think most people on Medicare are happy it exists, compared to private insurance.
True, private insurance isn’t run by the government, but Medicare isn’t private insurance. Part D, Advantage, and Medigap are run by private companies but follow government rules.
I’m glad Medicare is around, but the rules are complex because they were written by government officials.
Nori said: @Tal
Wow, this is a lot to take in! You really know your stuff! Why does health insurance have to be so confusing in the U.S.?
Yes! I felt lost until I realized that this is the first time I’ve had choices in healthcare coverage. Before now, it was always ‘take it or leave it’!
@Tal
Thanks a lot for the detailed response. I have a couple of follow-up questions:
> It is correct that you can delay your Part B enrollment until you no longer have large group coverage through your employer.
That applies to Part A as well, right?
> There is no longer a long waiting period after January 1st if you apply during the last three months of your initial enrollment period.
The broker mentioned delays because of government processing time, so I was worried I couldn’t just retire with short notice. I’m trying to figure out how much time to allow for coverage to start after I apply.
I plan to sign up for a Medicare Supplement and Part D. Thanks again!
@Tal
I’m in a similar situation as the original poster, and I enrolled in a Medicare Advantage (Cigna) plan. It saves me about $80 a month, plus I get free access to health clubs. The co-pays are lower too. Have others had a similar experience?
If your 65th birthday was in November and you’re considering enrolling early in 2023, your CPA should have advised stopping HSA contributions in October.
Medicare has a six-month look-back period, but not beyond your 65th birth month, which means disqualifying coverage starts from November 1st. So for 2022, you’d be eligible for only 10/12 of the HSA limit (based on family or single) and the catch-up contribution.
Quick question. I’m turning 65 and still working with commercial insurance (retirement is probably 5 years away). I know I can sign up for Part A but don’t have to.
Q: Is there any downside to signing up now? I don’t want any issues with my current insurance. I don’t see much reason to enroll in Part A yet.
I’m covered by employer insurance, so I didn’t take Part B. I’m switching to part-time soon, though. Should I sign up now for Part B and a supplement (G and D)? Does going part-time require me to join Medicare B, or can I keep using employer coverage?
The first response is spot on, but I’ll simplify it:
If you’re not getting Social Security, you’ll need to apply for Medicare. You can apply online at www.ssa.gov.
You can delay enrollment if your employer coverage is as good as or better than Medicare. Check with your HR department. They can confirm if it’s creditable. If it is, you don’t need to enroll in Medicare until you retire.
I recommend signing up two months before your employer coverage ends.
In my experience, many people find Medicare offers better coverage at lower costs than group plans. Talk to a licensed broker with access to multiple Medicare options so you can make the best choice for you.
Quick question – is Medicare and Social Security a joint application? I want Social Security to start in July 2023, but I want Medicare in August. Is it just easier to start both in July?