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Working Past 65? You Have Choices.

Just because you’ve turned 65 doesn’t mean you must leave your employer's plan. If you or your spouse are still working and have health insurance through an employer, you may be able to delay Medicare without penalty. However, the rules for how Medicare interacts with your work plan depend entirely on the size of your company.

Small Business (Fewer than 20 Employees)

Medicare is Usually Primary.

In most cases, if your employer has fewer than 20 employees, Medicare becomes the "primary" payer at age 65. This means your work insurance may refuse to pay until Medicare pays its portion.

You generally need to sign up for Parts A and B during your Initial Enrollment Period to avoid massive coverage gaps.

Large Business (20 or More Employees)

You May Be Able to Delay Medicare.

If your company has 20+ employees, your employer plan remains "primary". You can often delay Medicare Part B (the part with a monthly premium) until you actually retire.

When you eventually leave work, you'll trigger an 8-month Special Enrollment Period (SEP) to sign up without any late penalties.

The HSA Trap: Stop Contributions Early!

If you have a Health Savings Account (HSA), you must stop all contributions 6 months before you enroll in any part of Medicare (including premium-free Part A).

Because Medicare Part A can be retroactive for up to 6 months, failing to stop your contributions in time can lead to IRS tax penalties and excise taxes.

Is Your Work Plan Still the Best Deal?

Just because you can stay on your work plan doesn't mean you should. We perform a side-by-side comparison of:

  • Premiums: What you pay for your work plan vs. Medicare Part B + a Supplement.

  • Deductibles: Are you paying $3,000 or $5,000 before your work insurance kicks in?

  • Networks: Do your Havasu doctors prefer Medicare over your employer's network?

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