FAQs

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I plan to retire when I turn 65. I have health care coverage now through my employer. What happens to that when I retire?

• It’s important that you understand your choices. 
• First, find out whether you can keep any of the coverage you have now when you retire. Also find out whether your current coverage can be combined with Original Medicare Parts A and B and what your costs might be if you combined them. If you can keep some of the coverage you have now, you may have more choices than the standard ones.
• If you have retiree coverage available to you through your current employer, union or other source (like VA Benefits or TRICARE), talk to your benefits administrator, insurer or plan before making any changes to your coverage. If you drop your current coverage, you may not be able to get it back.
• You’ll need to talk with someone who’s familiar with the details of the plan you have now. If your coverage is a benefit from an employer or a union, talk to the human resources or benefits administrator. 

My spouse is turning age 65 this year, retiring and planning to sign up for Medicare. I’m 61, not working and have always used my spouse’s health care benefits. What happens to me and my coverage when my spouse enrolls in Medicare?

• Medicare won’t cover you until you reach age 65, even if your spouse is already receiving benefits. When your spouse enrolls in Medicare, you’ll need to find other health insurance coverage until you turn 65.
• Find out whether your spouse’s current health coverage can cover you after your spouse retires. For example, you may be eligible for COBRA coverage for up to 36 months. And look for health insurance offered by groups you belong to, like a social or professional organization or an alumni association. You may also be able to purchase Marketplace or individual health insurance policies.

You’re 65 and Working: What about Medicare? What do employed 65-year-olds do about Medicare?

• You may elect to enroll in Medicare Part A and defer Part B if you are covered by a group health plan that meets or exceeds creditable coverage requirements. 
• You can also choose to apply for Part B and drop group coverage to enroll in a Medicare plan.
• To find out what may be best for you it is recommended to speak with a licensed agent that can help you with this decision. 

I have heard of penalties for not enrolling in Part B or Part D when I turn 65. Will I be penalized?

• If you have current group coverage that covers medications and outpatient services like doctor visits, lab work, etc. you will not be subject to any penalties. 
• You can defer your enrollment in Part B and Part D until you choose to retire or drop group coverage and continue working.

Is Medicare free?

• No. You are automatically eligible for Part A of Medicare (Hospital and Inpatient care) if you have worked 40 quarters and paid into this with each pay period. If you are a dependent of someone who has paid into the system you are granted this coverage as well.
• Part B of Medicare (Outpatient care) costs $144.60 per month and can be paid quarterly if you have not elected Social Security or will be taken directly from your social Security check.
• Part D (Drug coverage) you can buy a stand-alone plan to add to your Original Medicare (A+B) or you can enroll in a Medicare plan that contains Part D. These plans are called Par C (Medicare Advantage Plans). Part C plans typically contain all of Part A benefits, Part B benefits and Part D benefits and include extra coverages that Medicare does not cover like, Dental, Vision, Hearing, Gym memberships, etc.