How Medicare Works if You're Not Retired

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1. What Is Medicare? How It Works, Who Qualifies, and How to Enroll
2. Do You Need All 4 Parts?
3. Eligibility Age
4. Part A Definition
5. Part B Definition

How Medicare Works

1. Medicare After Retirement
2. How Medicare Works If You're Not Retired

Medicare Part D (Prescriptions)

1. Part D Definition
2. Avoid the Part D Premium Penalty
3. Creditable Coverage
4. Best Part D Providers

1. Medigap Definition
2. Medicare Supplementary Medical Insurance
3. Who Needs Medigap
4. Best Medigap Providers
5. Best Plan F Providers
6. Best Plan G Providers

Medicare Advantage (Part C)

1. Medicare Advantage Definition
2. Medigap vs. Medicare Advantage
3. Pitfalls
4. Best Medicare Advantage Plans

Medicare vs. Medicaid

1. Medicare vs. Medicaid: What's the Difference?
2. How Much Medicaid and Medicare Cost

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If you’re not planning to retire anytime soon but you’re about to turn 65, you might be wondering if you should sign up for Medicare. Everyone’s circumstances are different, but in general, the decision to enroll will depend on the size of your employer and the value you’re getting from your workplace health insurance.

Key Takeaways

• Typically, most people enroll in Medicare Part A since they can get it without paying any monthly insurance premiums.
• You need to find out if your workplace health insurance meets the IRS definition of group coverage and if its prescription benefits count as creditable coverage.
• If not—or if you work for a company with fewer than 20 employees—you will probably want to enroll in Medicare Part B and Part D to make sure your doctor’s visits and prescriptions are covered so you don’t have to pay Medicare premium penalties later.

If you qualify for Medicare and are ready to look at plans, eHealth Medicare, an independent insurance broker and partner of Investopedia, has licensed insurance agents at 1-877-543-6619 who can help connect you with Medicare Advantage, Medicare Supplement Insurance, and Prescription Drug Part D plans.

Signing Up for Medicare Part A at 65 If You’re Still Working

If you're still working at age 65 and not claiming Social Security benefits, the government will not automatically enroll you in Medicare Part A, which covers hospital stays.

If you work for a company with 20 or more employees and you're enrolled in your employer's health insurance plan, you do not have to enroll in Part A. If your employer covers the bulk of your premiums, you have a low deductible, and you're not eligible for premium-free Part A, it might make sense to continue relying solely on your workplace coverage.

If you're eligible for premium-free Part A—most people are because they've paid Medicare taxes throughout their working years—you might as well enroll since you've earned it. As secondary health insurance, Part A may cover hospital expenses your employer's plan does not.

If you work for a company with fewer than 20 employees, you should enroll in Part A as soon as you're eligible. Medicare will become your primary payer.

If you're covered by a Health Insurance Marketplace plan or COBRA, you should sign up for Medicare Part A during your initial enrollment period, which starts three months before you turn 65, includes your birthday month, and ends three months after you turn 65.

Although Medicare Part A pays for inpatient hospital stays and nursing care, there's an annual deductible, which is $1,632 for 2024. Many people don't pay a monthly premium for Part A, and no copayments are required for hospital stays of 60 days or less.

Please note that Part A premium penalties apply if you are not eligible for premium-free Part A and end up buying the coverage after the initial Medicare enrollment period.

Signing Up for Medicare Part B at 65 If You’re Still Working

If you’re still working at age 65 and you’re not claiming Social Security benefits, the government will not automatically enroll you in Medicare Part B, which covers doctor’s visits, diagnostic tests, medical equipment, ambulance transportation, and mental health care.

If you work for an employer with 20 or more employees and you’re enrolled in the employer’s health insurance plan, you don’t have to enroll in Part B. You might not want to do so, because it isn’t free.

Medicare Part B Premiums and Deductibles

The Part B deductible is $240 for 2024, up from $226 in 2023. Please note that premiums increase in tiers at higher income levels.

The Part B monthly premium is $174.70 in 2024, up from $164.90 in 2023.

Group Coverage

It's important to ensure that your workplace health insurance meets the IRS definition of group coverage. You’ll want to get the answer in writing from your employer. If it doesn’t, you should enroll in Part B during your initial enrollment period to avoid paying a permanent premium penalty.

If you work for a company with fewer than 20 employees, you should enroll in Part B as soon as you’re eligible. Medicare will become your primary payer.

If you already have Part B but don’t need it because you have group coverage, you can contact Social Security to unenroll. Keep your proof of group coverage in case you later need to prove you don’t owe a penalty.

If you’re covered by a marketplace plan, a private plan, or COBRA, you should sign up for Medicare Part B during your initial enrollment period to avoid penalties.

You cannot contribute to a Health Savings Account once you enroll in Medicare.

Signing Up for Medicare Part D at 65 If You’re Still Working

To make sure you have prescription medication coverage, you need either creditable prescription drug coverage from work, Medicare Part D, or a Medicare Advantage plan with drug coverage. Your employer can tell you if your workplace coverage is creditable, meaning it’s as good as or better than Part D.

Once you sign up for Part D, you could lose your workplace prescription coverage, and you may not be able to get it back.

If you don’t have either and you don’t enroll in Part D on time, you’ll pay higher Part D premiums.

The Bottom Line

You won’t be automatically enrolled in Medicare at age 65 unless you’re claiming Social Security benefits. But if you’re not retired yet, you may not be claiming those benefits, and you’ll need to proactively choose which parts of Medicare to enroll in and when.

Since Part A is free for most people who have paid Medicare taxes throughout their working years, it usually makes sense to enroll even if you have great health insurance through work. The decision to enroll in Parts B and D is less straightforward, and you’ll need to know if your workplace insurance meets certain requirements before you proceed.

Can I Still Work And Have Medicare At The Same Time?

Yes, but you will not be automatically enrolled in Medicare if you are not claiming Social Security benefits. As long as your workplace insurance covers your needs, you are free to stick with it. However, it's important to consider the size of your company and take advantage of Medicare coverage if you've earned it through all your years as a taxpayer.

Will I Automatically Get Medicare When I Turn 65?

Yes, if you receive Social Security benefits. However, if you're still working at age 65 and not claiming Social Security benefits, the government will not automatically enroll you in Medicare.

How Do I Sign Up For Medicare?

Medicare enrollment is automatic when you turn 65 if you're receiving Social Security benefits. Otherwise, you will have to sign up online, call Social Security 1-800-772-1213, or reach out to a local Social Security office.

1. Centers for Medicare and Medicaid Services. "Working Past 65."
2. Centers for Medicare and Medicaid Services. Part A Costs."
3. Centers for Medicare and Medicaid Services. "How Medicare Works with Other Insurance."
4. Centers for Medicare and Medicaid Services. "When Does Medicare Coverage Start?"
5. Centers for Medicare & Medicaid Services. "2024 Medicare Parts A & B Premiums and Deductibles."
6. Medicare.gov. "Avoid Late Enrollment Penalties."
7. Centers for Medicare and Medicaid Services. "What Part B Covers."
8. Centers for Medicare and Medicaid Services. "Working Past 65."
9. Social Security Administration. "Medicare Benefits."
10. Social Security Administration. "How Do I Terminate My Medicare Part B (Medical Insurance)?"
11. Centers for Medicare and Medicaid Services. "Fact Sheet: Deciding Whether to Enroll in Medicare Part A and Part B when You Turn 65," Page 4.
12. Centers for Medicare and Medicaid Services. "How to Get Prescription Drug Coverage."
13. Centers for Medicare and Medicaid Services. "How Part D Works With Other Insurance."
14. Centers for Medicare and Medicaid Services. "Part D Late Enrollment Penalty."

1. What Is Medicare? How It Works, Who Qualifies, and How to Enroll
2. Do You Need All 4 Parts?
3. Eligibility Age
4. Part A Definition
5. Part B Definition

How Medicare Works

1. Medicare After Retirement
2. How Medicare Works If You're Not Retired

Medicare Part D (Prescriptions)

1. Part D Definition
2. Avoid the Part D Premium Penalty
3. Creditable Coverage
4. Best Part D Providers

1. Medigap Definition
2. Medicare Supplementary Medical Insurance
3. Who Needs Medigap
4. Best Medigap Providers
5. Best Plan F Providers
6. Best Plan G Providers

Medicare Advantage (Part C)

1. Medicare Advantage Definition
2. Medigap vs. Medicare Advantage
3. Pitfalls
4. Best Medicare Advantage Plans

Medicare vs. Medicaid

1. Medicare vs. Medicaid: What's the Difference?
2. How Much Medicaid and Medicare Cost

Medicare Supplement open enrollment only happens once, according to federal guidelines. Don’t miss out on your chance to buy a Medigap plan.

Medicare Supplement Plan F is a well-liked Medigap plan, but it’s not for new-to-Medicare recipients. Find out more about what it is and how it works.

Medicare Advantage open enrollment happens every year from January 1 through March 31. Use the time before open enrollment begins to research and compare your options.

A Health Savings Account (HSA) is an account for individuals with high-deductible health plans to save for medical expenses that those plans do not cover.

A health maintenance organization (HMO) is a health insurance plan that provides health services through a network of doctors for a monthly or annual fee.

Health insurance is a type of contract in which a company agrees to pay some of a consumer's medical expenses in return for payment of a monthly premium.

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