Still Working? What Should You Do?

Should You Keep Employer Coverage or Enroll in Medicare at 65?

One of the most common questions we hear is:

"I'm turning 65 but still working. Do I need Medicare?"

The answer depends on your employer's health plan, the size of the company, and your future retirement plans.

When You May Be Able to Delay Medicare

If you're actively working and covered by an employer health plan, you may be able to delay Medicare Part B without penalty.

Generally, if your employer has 20 or more employees, the employer plan remains primary and Medicare can often be delayed until retirement.

When Medicare May Be Required

If your employer has fewer than 20 employees, Medicare may become your primary insurance once you turn 65.

Failing to enroll in Medicare when required could result in:

• Coverage gaps
• Delayed claims payments
• Permanent late enrollment penalties

Questions You Should Ask

Before making a decision, consider:

• How many employees does my company have?
• What is my monthly premium through work?
• Am I contributing to an HSA?
• When do I plan to retire?
• Would Medicare reduce my healthcare costs?

Medicare and HSAs

Many people don't realize that enrolling in Medicare affects Health Savings Account (HSA) contributions.

Once Medicare coverage begins, you can no longer make new HSA contributions.

This is an important factor for many working adults approaching retirement.

There Is No One-Size-Fits-All Answer

For some individuals, staying on employer coverage makes the most sense.

For others, Medicare can provide lower costs and more flexibility.

The key is understanding how your specific employer plan works before making a decision.

Need Help Comparing Your Options?

At The Insurance Workshop, we help individuals turning 65 understand whether it makes sense to stay on employer coverage or transition to Medicare.

Our consultations are always free, and we'll help you compare your options so you can make an informed decision.