Sign Up for Medicare While Still Working and Having Employer Insurance

M

markmokris

Member
I turned 65 two weeks ago.

I am still employed by a large employer and receive a group health insurance policy that I am happy with. I want to continue to work, and I am not taking Social Security benefits.

Everything I read says that I DO NOT have to sign up for Medicare right now. I can continue taking my employer's group insurance and contribute to the HSA that is available to me.

However, all my friends say "You are 65 and you HAVE TO sign up for Medicare" or you will receive penalties later on.

Do I have to sign up for Medicare now or do I not?

Thanks!
 
Based on the information provided, it sounds like your large group plan meets the qualifications to delay Medicare enrollment without penalty. However, you need to confirm this with the employer's human resources department. Only they know for sure as there are exceptions to this general rule, especially if the large employer is non-profit.

Here is a CMS brochure on when to enroll in Medicare.

 
After reviewing this attachment, I can see this IS the definitive guide for answering my question. Terrific! Thanks again.

I had called the Medicare question line and was startled how little the agent knew about this.

Mark
 
Here is what worries me because I haven't been able to get anyone at my employer or Medicare to confirm the whole thing for me.

I am 65 right now. Say I keep working 5 more years. I stay within my high deductible, UHC, commerical, large group plan that my employer offers me. I continue to contribute to my HSA. No problem.

In 5 years I retire. Within 8 months I go to Medicare and try to sign up.

1. Will they say "You have big Part B penalities coming, because you waited 5 years to sign up!"??????? Or what if I get that response, because the particular Medicare agent is ignorant?

2. Will I be able to say "No I have been working and covered under a large group plan? There should be no penalties like your rules say."

3, Will they understand? How will I prove that I have been working and have had large group commericial coverage age 65 to 70.

I am just scare to death of these Part B penalties and the possible battle with Medicare in 5 years.

Mark
 
There are potentially two penalties you will need to avoid and they are each handled differently. There are Part B Late Enrollment Penalties (LEP) and Part D drug plan LEPs.

When you sign up for Part B, you will need to state that you had large group coverage since age 65. They will give you CMS Form L-564 and ask you to have the employer complete it. The employer's HR department completes it by certifying you had qualifying continuous large group coverage since age 65. You then bring the completed form to your local Social Security office to have the Part B penalty waived. You want to verify now that HR can complete the form when the time comes.

CMS Form L-564: https://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/Downloads/CMS-L564E.pdf

If you change jobs, you need to have the previous employer complete the form when you leave and not wait until you enroll in Medicare. There have been cases where the previous employer does not keep records and cannot certify large group coverage.

To avoid the Part D LEP, the employer should provide you with a "notice of creditable coverage" around October of each year. You need to keep each annual notice until you enroll in Medicare.

Part D Annual Notice of Creditable Coverage: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/medicare-d-notice-deadline.aspx

When you enroll in Medicare, Part A coverage will be retroactive 6 months so you will need to stop HSA contributions 6 months prior to enrollment. This is covered in the link in post #2.
 
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