Medicare Fast Approaching

[freedomatlast]

As some may know, I failed at retirement and returned to work a little over a year after my retirement in 2019. It's a good gig, lots of fun and keeps me thinking and out of trouble.

Anyway, since I'm approaching the time for Medicare in December when I'll be 65, I've been doing a lot of research.

What I've learned is that a person does not have to apply for Medicare at 65 if they continue working and are covered under a "credible" plan with their employer. A credible plan is one that provides benefits as good as, or better than, Medicare.

At the time one stops working or no longer is covered under their employer's credible plan, the employer will provide an L564 form that is filled out and sent to Medicare so you aren't accessed a penalty for not signing up for Medicare before or at 65 years of age.

Does this sound correct to those that have travelled this road?

Any advantage to signing up for Medicare part A before 65 while still covered under a "credible" plan?

I understand one advantage to not signing up for part A at 65 while still covered under a "credible" plan, is that you can still contribute to an HSA.

 

[MichaelB]

Moved to the health forum

 

[Jerry1]

Check with your employer. They may require you to sign up. Mine required it. At that point, Medicare became primary and the company just filled in the gap between what Medicare paid and what their plan would have paid.

 

[Koolau]

Check with your employer. They may require you to sign up. Mine required it. At that point, Medicare became primary and the company just filled in the gap between what Medicare paid and what their plan would have paid.

Yeah, I think this is typical though (full disclosure) I FIRE'd early and my employer supplemented my health care. At 65 the supplement REQUIRED me to sign up with MC so that it was primary. SO, I think your original statement is correct BUT your employer won't let you get away with doing MC that way.

 

[zl55lz]

More info would be needed, such as what the plan is (HDHP, is there a Health Savings Account?) and how many people work for the company to determine how Medicare would work with it, and which insurance would be primary and which secondary. And as others mentioned, does the employer require enrolling at 65.

 

[freedomatlast]

Yes, HDHP with HSA. 17 billion dollar company in annual revenue with over 10,000 employees worldwide. Plan is considered "credible" in Medicare terms.

 

[zl55lz]

Yes, HDHP with HSA. 17 billion dollar company in annual revenue with over 10,000 employees worldwide. Plan is considered "credible" in Medicare terms.

Since it is a large employer I believe Medicare would be secondary coverage and apparently there are rules about Part A and having a HSA as you mentioned. Info at Medicare.gov

I personally would first find out what the company requires as far as options/requirements regarding Medicare and plans at 65. That could determine the next steps. The HR Dept. hopefully can help with this.

 

[freedomatlast]

Yes, I've done that and the company said it doesn't matter to them whether I apply for part A or not.

They said if I apply for Medicare part A at 65, there could be something that the company's insurance doesn't pay for, that Medicare would pick up. That's correct that Medicare part A would be secondary coverage.

If I don't apply for part A at 65 years old, I could then still contribute to an HSA. Then later upon separation from the company, they would provide an L564 form that is filled out and sent to Medicare so I wouldn't be accessed a penalty for not signing up for Medicare before or at 65 years of age.

At this point, I think I'll just sign up for Medicare Part A at 65 and be done with it. Not being able to continue to contribute to an HSA seems to be the only downside, and that isn't a big deal to me since I already have one with a substantial balance.