Working Past 65: Do You Need Medicare Part B If You Have Employer Insurance?
Are you still working at your job even though you are turning 65 soon? You might be wondering if you need to sign up for Medicare Part B right now. The answer is not the same for everyone, and it can be a little bit confusing at first. For many people, the answer depends on how big your company is and how many people work there. You need to know the rules so you do not have to pay extra money later. This guide will help you understand if you need to sign up or if you can wait. We want to help you make the right choice for your health and your wallet.
How The Size of Your Company Matters
The most important thing to look at is the size of the company where you work. You need to count how many people work at your job to know what to do. If your company has fewer than 20 employees, the rules say you must sign up for Medicare Part B. At a small job like this, Medicare pays your doctor bills first, and your job insurance pays second. If you do not sign up, your job insurance might not pay your bills at all.
- Less than 20 employees: Medicare pays first, so you need Part B.
- 20 or more employees: Your job insurance pays first, so you can wait.
- Always check with your boss: Ask the person who handles benefits to be sure.
If your company has 20 or more employees, your job insurance pays your bills first. This means you might be able to wait to sign up for Medicare Part B.
What Counts as Good Coverage
You might hear people talk about something called “creditable coverage,” which is just a fancy word for good insurance. The government wants to make sure your job insurance is as good as Medicare. If your job insurance pays for enough doctor visits and medicine, it counts as good coverage. Most big companies with more than 20 workers have this kind of good insurance for their staff. If you have this good coverage, you do not have to pay a fine for waiting to get Medicare. But you must be careful because not all job insurance is considered good enough by the government. You should ask your benefits manager for a letter that says your coverage is creditable. Keep this letter in a safe place because you will need it later when you retire.
The Cost of Medicare Part B
Medicare Part B costs money every single month, and the price can change each year. For the year 2026, the standard cost you pay each month is $202.90. This is a bill you must pay even if you do not go to the doctor that month. In addition to the monthly bill, there is also a deductible you must pay before Medicare starts helping.
- Monthly Premium: Most people pay $202.90 every month.
- Annual Deductible: You pay the first $283 of doctor bills in 2026.
- High Earners: If you make a lot of money, you might pay more.
If you keep your job insurance, you might not want to pay this extra $202.90 every month. That is why many people at big companies choose to wait until they stop working.
Why You Might Want Both
Some people choose to have both their job insurance and Medicare Part B at the same time. If you work for a big company, your job pays first, and Medicare pays second. Medicare might pay for some things that your job insurance does not cover. This can help lower the amount of money you have to pay when you go to the hospital. However, you have to decide if the extra help is worth the monthly cost of $202.90. For many people who are healthy, paying for two insurance plans is just too expensive. But if you have a lot of health needs, having both plans might save you money in the end. You should look at your budget and your health needs before you decide to sign up for both.
Avoiding the Late Fine
If you do not sign up for Medicare Part B when you are supposed to, you might have to pay a fine. This fine is not just a one-time fee, but it stays with you for the rest of your life. The government adds an extra 10% to your monthly bill for every full year that you waited. This means your monthly bill could be much higher than $202.90 if you wait too long.
- Lifetime Penalty: You pay the extra cost for as long as you have Medicare.
- 10% Increase: The cost goes up 10% for each year you miss.
- Example: If you wait two years, you pay 20% more every month.
The only way to avoid this fine is to have good insurance from a job while you are waiting. If you do not have job insurance and you wait, you will definitely have to pay this penalty.
The Special Time to Sign Up
When you finally stop working or lose your job insurance, you get a special chance to sign up. This is called a Special Enrollment Period, and it lasts for eight months. The clock starts ticking the month after your employment ends or your insurance ends, whichever happens first. You must sign up for Medicare Part B during this eight-month window to avoid the fine.
- 8-Month Window: You have eight months to sign up after work ends.
- No COBRA: COBRA insurance does not count as work insurance.
- Don’t Wait: It is best to sign up before your job coverage stops.
Many people make a big mistake by thinking COBRA coverage lets them wait longer. COBRA is not considered active work coverage, so you must sign up for Medicare immediately.
Don’t Forget Drug Plans
Medicare Part B is for doctors, but you also need to think about medicine coverage. This is called Medicare Part D, and it helps pay for your prescription drugs. Just like Part B, you can get a fine if you do not have good drug coverage. You need to check if your job insurance pays for prescriptions as well as a Part D plan does. If your job’s drug coverage is not good enough, you should join a Part D plan when you turn 65. If you lose your job drug coverage, you only have 63 days to get a new plan. If you wait longer than 63 days, you will have to pay a penalty for Part D too.
How We Can Help You
We know that all of these rules about Medicare and insurance can be very hard to understand. That is why We Can Help You is here to make things easier for you. We are a nonprofit group that educates people and connects them with licensed professionals.
- Education: We teach you the rules so you don’t make mistakes.
- Connections: We find local experts who can guide you.
- Peace of Mind: We help you feel good about your choices.
You do not have to figure this out all by yourself because we are ready to assist. You can visit our website or contact us to find the help you need today.
Conclusion
Deciding when to get Medicare Part B while you are working is a big choice. If your company is small, you usually need to sign up right away to be safe. If your company is large, you might be able to wait and save some money. Always remember to check if your current insurance is considered good coverage by the government. If you make the right choice now, you can avoid paying lifetime fines later on. We Can Help You is always here to support you through this important time in your life.
