Working past age 65


Not ready to retire? We have you covered.

Here's what you need to know if you plan to keep working.

If you plan to keep working after you turn 65 or you have employer health coverage through a spouse, you may not need to enroll in Medicare during your Initial Enrollment Period (IEP). How you get your health insurance now and the number of employees at your (or your spouse's) company will impact your Medicare enrollment timeline. Learn more about your Medicare options by answering a few questions below.

In some cases, switching from your employer-based plan to a Medicare Advantage plan may save you money and help you enjoy additional benefits. For instance, if you’re paying a high percentage of your health insurance premiums or you’re enrolled in a high deductible health plan, switching to a Medicare Advantage plan might be a better value. Our knowledgeable Medicare team can do the math and give you unbiased guidance about your best options.

Learn more about your Medicare options by answering a few questions below.

Are you OR your spouse working at a company with at least 20 employees?

Yes No

Do you get health insurance through this job?

Yes No

Do you get health coverage through the Veterans Administration (VA) or TRICARE for Life?

Yes No

Do you have “creditable” drug coverage that’s at least as good as Medicare’s standard drug benefit?

Yes No

Enroll in Medicare during your IEP.

Talk with VA/TRICARE for Life Human Resources to learn how Medicare works with your current coverage before considering your Medicare enrollment options.

Enroll in Medicare during your IEP.

Do you pay a high percentage of your health insurance premiums, or are you enrolled in a high deductible health plan?

Yes No

Enroll in Medicare during your IEP.

You may be able to save money and enjoy additional benefits by enrolling in a Medicare Advantage plan. Talk to our Medicare team. We’ll crunch the numbers, compare benefits, and help ensure you get the best value.

Consider signing up for Part A when you turn 65; most people don’t pay a Part A premium. You can wait to enroll in Medicare Parts B and D until you retire or lose your job-related health insurance. You’ll have a Special Enrollment Period (SEP) for signing up.

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Special circumstances to consider

In general, if you have job-based health insurance through your or your spouse's current job, you can likely delay Medicare enrollment until you (or your spouse) stop working or lose your health insurance. But there are several exceptions to this rule.

  • If you’re paying a high percentage of your health insurance premiums or enrolled in a high deductible health plan: Talk to our experienced Medicare team. We’ll help determine if you could save money and enjoy additional benefits by enrolling in a Medicare Advantage plan.
  • If you're self-employed or have health insurance that's not available to everyone at the company: Ask your insurance provider if your coverage is employer group health plan coverage (as defined by the IRS). If not, sign up for Medicare when you turn 65 to avoid a monthly Part B late enrollment penalty.
  • If the employer has fewer than 20 employees: You may need to sign up for Medicare when you turn 65 to avoid gaps in your job-based health insurance. Check with the employer.
  • If you have COBRA coverage: Sign up for Medicare when you turn 65 to avoid gaps in coverage and a monthly Part B late enrollment penalty. Note: your COBRA coverage will probably end once you sign up for Medicare.
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How Medicare works with employer health insurance plans

Medicare and employer coverage
You can have Medicare and job-based or other types of coverage, such as COBRA, TRICARE for Life, CHAMPVA, VA and FEHB. How Medicare works with each of these will vary. Our knowledgeable Medicare team can help you understand your individual situation. If you have a Health Savings Account (HSA), see our FAQ page for detailed guidance on when to enroll in Medicare.

If you or your spouse are still working and...

Here's how your coverage works with Medicare Parts A and B...

The employer has fewer than 20 employees

Medicare pays for services first, and your employer insurance pays second.

If you don't sign up for Parts A and B, your employer insurance might not cover the costs for services you get.

Ask the employer that provides your health insurance if you need to sign up for Part A and Part B when you turn 65.

The employer has 20+ employees

Your job-based insurance pays first, and Medicare pays second.

If you don't have to pay a premium for Part A, you can choose to sign up when you turn 65 (or anytime later).

You can wait until you stop working (or lose your health insurance, if that happens first) to sign up for Part B, and you won't pay a late enrollment penalty.

If you’re paying a high percentage of your health insurance premiums or are enrolled in a high deductible health plan, consult with our AAA Medicare team to determine if you could save money and enjoy additional benefits by enrolling in a Medicare Advantage plan.

The employer provides a stipend to buy health insurance

 

OR

 

You or your spouse are still working but don't have health insurance through that job

Generally, Medicare doesn't work with your insurance.

Once you sign up, Medicare pays first.

Some private insurance has rules that lower what they pay (or don't pay at all) for services you get if you're eligible for other coverage, like Medicare.

Ask your health insurance company if you need to sign up for Part A and Part B when you turn 65.

What to do about Part D coverage

You can get Medicare Part D prescription drug coverage once you sign up for either Part A or Part B. If your employer plan has creditable drug coverage you can wait to get Medicare Part D.

However, it's important to know that, even if you have a Special Enrollment Period (SEP) to join a plan after your employer plan ends, you only have up to 2 months to get Part D. Otherwise, you'll pay the monthly Part D late enrollment penalty.

If your employer plan has drug coverage, be sure to ask if it is creditable drug coverage, meaning at least as good as the standard Medicare Part D drug benefit or better.

When you need to get Part D

If you...

You should...

Don't have drug coverage at all

To avoid a monthly Part D late enrollment penalty, join a Medicare Advantage plan with drug coverage within 3 months of when your Medicare coverage starts OR join a Medicare Part D standalone plan.

Have creditable drug coverage

You can wait to get your Medicare Part D coverage; however, if your drug coverage switches to "not creditable," you'll have 2 months to join a Medicare drug plan and avoid the Part D late enrollment penalty.

Have drug coverage that's not creditable

To avoid a monthly Part D late enrollment penalty, join a Medicare Advantage plan with drug coverage within 3 months of when your Medicare coverage starts OR join a Medicare Part D standalone plan.

If your drug coverage just switched to "not creditable," you'll have 2 months to get creditable drug coverage.

Our AAA Licensed Insurance Agents are here to help you

Our AAA Licensed Insurance Agents will talk with you to understand your personal situation and help you sort through your options. We’ll give you unbiased advice about the coverage options that are best for you. If you have questions, please call us at (877) 477-7120.

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By calling, you agree that a AAA Licensed Insurance Agent may contact you. AAA Insurance is provided through AAA Members Insurance Agency of Western & Central New York, Inc, which offers products through AAA-affiliated companies and non-affiliated companies. Not affiliated with any government agency including Medicare. We do not offer every plan available in your area. Currently we represent 12 organizations which offer 65+ products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.
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