Client Profile

Denise is nearing 65 and is confused about Medicare rules. She will continue working and receiving company health benefits. Should she still sign up for Medicare?

It depends on the size of Denise’s company. If her employer has fewer than 20 employees, she should sign up for Part A and Part B when first eligible at age 65. Medicare pays before employer coverage when the business has fewer than 20 employees. Failure to enroll could result in a lifetime late enrollment penalty.

If Denise works for a company with 20 or more employees and has employer health coverage, she may be able to delay Part A and Part B without having to pay a late enrollment penalty and needn’t do anything. She can apply for premium-free Part A Medicare anytime after age 65 and for Part B Medicare coverage during the eight months after employment ends.

If you have a situation similar to Denise’s, talk to a health insurance specialist who understands Medicare’s various rules.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.