Your Medicare Fix is Easier Than You Think!

“Could you please explain what someone who is turning 65 and working full-time with employer benefits should do? I made a significant mistake by enrolling in Medicare when I turned 65 in May, and my Part B premium has increased significantly due to my income. I would appreciate guidance on how to discontinue my Medicare Part B.” -Tiffany

Tiffany, I have good news for you because your Medicare situation is simple. Medicare does allow those turning 65 with employer benefits to delay Part B enrollment without a penalty when they want to enroll in Medicare later. This information is discussed in the Medicare & You handbook on page 19 under “I have other health coverage. Should I get Part B?” Delaying Medicare does require you to have employer group health coverage from your or your spouse’s employment.

Social Security processes the paperwork for Medicare and must interview you to terminate your enrollment in Medicare Parts A and/or B. You can start this process by calling your local Social Security office or Social Security’s toll-free number at 800-772-1213. Inform the representative that you need to terminate your Medicare because you are enrolled in an employer’s group health plan and mistakenly enrolled in Medicare. You will need to file Form CMS-1763 with Social Security to terminate Medicare Part A (hospital) or Part B (medical).

Related Podcast:

Below are Medicare enrollment situations that DO Matter:

• A Working Spouse: Does It Matter?
  • If the working spouse is providing health insurance benefits from their current employment group health coverage, then you may want to delay enrolling in Medicare Part B. You might continue to work either part-time or as a self-employed individual while taking advantage of the coverage provided by your working spouse.
• Self-Employed: Does It Matter?
  • Yes, it does. If you are turning 65, not covered under an employer’s group health plan, and waited to enroll in Medicare Part B, then you can receive a 10% penalty for each 12-month period that you were not enrolled in Part B after turning 65. If you waited 2 years to apply for Original Medicare Parts A and B, the Medicare Part B penalty will be a 20% penalty (2 years, ages 65 and 66) added to your Part B premium every month for as long as that you are on Medicare or the rest of your life.

Below are different options for enrolling in Medicare when turning 65:

1. Turning 65 and “still working”: Talk to your Employer’s human resources department. Verify whether you should delay enrolling in Part B because you (or your spouse) are “still working” and are on an employer group health plan. As soon as you or your spouse are no longer covered by an employer’s group health plan, have your HR department fill out and sign Social Security Form CMS-L564 “Request for Employment Information” and CMS-40B “Application for Medicare Part B.” Filing these forms together will justify your delay in enrollment and avoid needless penalties.
2. Turning 65 and Receiving Your Social Security Check: This is the easiest way to receive your Medicare card. Medicare will send your Medicare card 90 days before you turn 65. 
3. Turning 65 and NOT Receiving a Social Security Check: If you are still working or if you are not working but waiting past 65 to receive 100% of your Social Security benefits, enroll in Medicare online at www.ssa.gov/medicare/sign-up. Be sure to enroll in Medicare 90 days before you turn 65. 

Get weekly tips on housing, retirement living, senior care, and more sent right to your inbox.