For many people, turning 65 once meant automatic retirement. But today, more and more Americans are choosing to work longer, whether because they enjoy their jobs, want to boost their retirement savings, or simply aren’t ready to slow down. If you’re planning to work past 65, you may be wondering how this impacts your Medicare coverage.

At McCann Insurance in Durant, Oklahoma, we often get this question from clients who want to make sure they don’t miss deadlines or pay unnecessary penalties. The good news? You have options, but the rules can be tricky. Let’s walk through what you need to know.

Do You Have to Enroll in Medicare at 65?

Not always. If you’re still working and have health insurance through your employer, or through your spouse’s employer, you may be able to delay enrolling in Medicare without penalties.

The key factor is whether your employer coverage is considered creditable coverage (coverage that’s at least as good as Medicare). For most large employers with 20 or more employees, this is the case.

Medicare and Employer Insurance: How They Work Together

Here’s how Medicare interacts with employer coverage:

• Large Employers (20+ employees): Your employer insurance pays first, and Medicare pays second. Many people in this situation delay enrolling in Part B (medical insurance) to avoid paying the monthly premium until they actually need it.
• Small Employers (fewer than 20 employees): Medicare becomes the primary payer at 65, even if you’re still working. In this case, it’s usually best to enroll in Medicare to ensure you’re fully covered.

What About Medicare Part A?

Most people qualify for premium-free Part A (hospital insurance). Because there’s no cost, many choose to enroll in Part A at 65, even if they’re still working. However, if you have a Health Savings Account (HSA), enrolling in Medicare means you can no longer make contributions, something to keep in mind if you’re trying to maximize tax-advantaged savings.

Avoiding Penalties

If you delay signing up for Medicare without having creditable coverage, you could face permanent penalties:

• Part B Penalty: Your premium goes up 10% for every 12 months you were eligible but didn’t enroll.
• Part D Penalty: If you go more than 63 days without creditable prescription drug coverage, you’ll pay extra for Part D when you eventually sign up.

The good news is, if you have qualifying employer coverage, you can delay enrollment without penalties. Once you leave your job or lose coverage, you’ll have an 8-month Special Enrollment Period to sign up.

Planning Ahead

If you’re approaching 65 and plan to keep working, it’s smart to:

• Review your employer’s health plan to confirm if it’s creditable coverage.
• Decide whether to enroll in Part A or delay entirely (especially if you have an HSA).
• Mark your calendar for your Special Enrollment Period so you don’t miss deadlines.

Final Thoughts

Working past 65 gives you flexibility, but it also adds complexity when it comes to Medicare. The decisions you make can affect both your coverage and your wallet.

At McCann Insurance in Durant, Oklahoma, we specialize in guiding people through Medicare choices, whether you’re retiring at 65 or working well into your 70s. If you’re unsure when to enroll, let us help you create a plan that protects your health and avoids unnecessary costs. Call us today at 580-916-9808 to learn more.