Are you aging into Medicare and still working? Don't go anywhere! In this video, we explain how your employer coverage works with Medicare. My name is Lindsay Engle, and I'm the Medicare Expert for Elite Insurance Partners and MedicareFAQ.com. The size of your employer will be a factor in your Medicare decision when you're 65 years old and still working.

If Your Employer Has 20+ Employees:
If your employer has more than 20 employees, your employer coverage becomes primary, and Medicare becomes secondary. In this scenario, most beneficiaries choose to enroll in Part A because Part A is usually premium-free as long as you have paid into Medicare for sufficient quarters. If you end up at the hospital, your Part A benefits will help keep your out-of-pocket cost lower.

Part B is your outpatient coverage, and Part D is your prescription drug coverage. As long as your employer has more than 20 employees, the coverage is considered creditable under Medicare. This allows you to delay enrolling in Part B and Part D without being penalized.

Because employer group coverage usually includes outpatient services and prescription drug coverage, most beneficiaries choose to delay enrolling since each comes with a monthly premium. Down the road, when you retire, you'll qualify for a Special Election Period. You'll be able to enroll in both Part B and Part D without incurring any penalties. 

If Your Employer Has Fewer Than 20 Employees:
If your employer has fewer than 20 employees, your Medicare becomes primary, and employer coverage is secondary. In this scenario, you'll want to enroll in both Part A and Part B. If you don't, you could be responsible for paying 80% of your outpatient services as well as incur a late penalty.

An Exception:
If you have a high-deductible plan and health savings account, and you plan to continue contributing or accepting your employer's contributions, you shouldn't enroll in any parts of Medicare. This is because the IRS states that if you have any additional coverage, including Part A, you cannot continue contributing to your HSA.

Important Tips:
• It's important to make sure your employer notifies Medicare that you  have retired to avoid rejection of any of your medical bills
• If you're currently collecting Social Security Income, you will automatically be enrolled in Part A. You cannot collect SSI without also enrolling in Part A.

If you plan to continue working past 65 and delay retirement, I hope you found this video helpful. If you did, make sure to subscribe to our YouTube Channel! Turn notifications on, so you know as soon as we upload a new video.

Medicare and Employer Coverage FAQ: https://www.medicarefaq.com/faqs/medicare-and-employer-coverage/
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