Once you near age 65 there can be a lot of potential changes in your life. Maybe you’re thinking of retiring soon, or perhaps you plan to continue working. If you want to keep working past 65, knowing how your employer coverage coordinates with Medicare is important. So, can you get Medicare if you’re still working? Yes, you can, but there are a few factors to consider.

Medicare Basics

The Medicare program is compromised of two different parts: Part A and Part B. Part A and Part B serve as your inpatient and outpatient health benefits. There is also Part C, which is another way for you to receive your Part A and Part B benefits through a private carrier instead of the federal government. It’s also known as the Advantage plan program. Additionally, there is Part D which is your drug prescription coverage.

In addition to these four parts are Medicare Supplement plans, also known as Medigap plans. Medigap plans help cover any “gaps” left over after Medicare pays. These gaps can include deductibles, copays, and coinsurance. Many private insurance companies offer Medigap plans, so you’ll want to do your research to see which carrier is best for you: boomerbenefits.com/top-10-medicare-supplement-companies/

Medicare Enrollment

Most people qualify for Medicare around age 65. Those who are retired likely sign up using their Initial Enrollment Period (IEP). Your IEP is your opportunity to sign up for Medicare Part A and Part B without penalty. It is 7-months long, beginning three months ahead of your 65th birthday month and ending three months afterward.

However, if you aim to continue working past 65, your enrollment will look different. Although you can keep working and have Medicare simultaneously, you’ll need to know if your employer’s insurance is creditable coverage to determine your next steps.

Large Employer

Medicare considers a company with 20 or more employees a large employer, therefore having creditable coverage. This means you can postpone your Medicare enrollment past 65 without penalty if you have coverage through an employer with 20 or more employees. In other words, you don’t have to sign up for Part A, Part B, Part C, or Part D while you actively work for that employer. The same is true if you have coverage through your spouse’s employer.

Technically, you can sign up for these Medicare parts, but it may not be smart financially since your employer coverage may already provide the benefits you need.

Premium-Free Part A

However, you may qualify for premium-free Part A. If you do, you may consider signing up for Part A in addition to your employer coverage. By doing so, you could have extra hospital stay coverage if you ever needed it.

To qualify for premium-free Part A, you must have worked within the United States for 40 quarters or more. If you have fewer work quarters, you do not qualify for premium-free Part A and will be responsible for a monthly payment. In this case, you may consider delaying Part A until later.

If you decide to sign up for Part A, your employer insurance would be primary, and Medicare would be secondary. This means the employer insurance pays first, and Medicare will pay second if needed.

Health Savings Account

There is another important factor to keep in mind. If you plan to add money to a Health Savings Account (HSA) in your name, you should not enroll in any part of Medicare. If you do, the IRS will likely charge you a penalty. This is true whether you have large or small employer insurance.

Retiring Later On

Once you retire or lose your large employer coverage later, you should qualify for a Special Enrollment Period (SEP). The SEP will last for eight months, starting the day your employer coverage is no longer effective. During these eight months, you can sign up for Part A and Part B through Social Security without penalty.

The SEP also opens a window for you to sign up for a Part D plan without penalty. However, you only have 60 days to do so without penalty, not eight months.

Small Employer

Medicare does not consider small company insurance as creditable insurance. So, if you have coverage through a small employer (less than 20 employees), you don’t want to delay your Medicare enrollment when you are eligible.

You will want to enroll in Medicare Part A and Part B during your IEP to avoid penalties. Medicare would be primary, and your employer insurance would be secondary.

Final Thoughts

The bottom line is, yes, you can continue working and have Medicare at the same time. However, you’ll want to confirm whether your employer insurance is creditable or not, as this determines how Medicare will coordinate with your employer benefits. It’s always good to check with your employer directly to verify.