MEDICARE BLOG

This is a common question among many Medicare age people, as many folks are not quite ready to retire once they are eligible for Medicare. So are you required to enroll in basic Medicare if you are still employed at 65? It depends on your employment status and size of the company.

If you are 65 or older and working at a company/organization with 20 or more employees, you are NOT required to enroll into basic Medicare (A and B). As long as you are a participating employee on a group insurance plan with more than 20 employees, you are exempt from enrolling in Medicare coverage, and will not be subject to Medicare penalties.

In many cases, Medicare age retirees are offered a severance package that includes health care benefits. In this situation, the "20 employee" rule still applies. Since you are not an active employee with health care benefits, the government does not view your coverage as credible, and you will be required to enroll in Medicare A and B. If you are receiving severance benefits (including COBRA) and fail to enroll in Medicare, you will be subject to a 10% penalty for the rest of your life.

People with HSAs normally use the plan to help supplement the high deductibles associated with their health insurance. If you have a HSA plan and are receiving Medicare benefits, or plan on enrolling in Medicare soon, make sure you and your employer stop contributing to the HSA immediately. There are 2 reasons you should cut off your HSA while on Medicare:

1. Since your HSA is paying for your high deductibles, you wont need it once you start receiving Medicare benefits.
2. If you contribute to your HSA while enrolled in Medicare, you will be responsible for tax penalties for every contribution you make.

Even though the worker/Medicare laws are designed to be straight forward, sometimes there are grey areas and exceptions that may impact your situation differently. If you are a Michigan resident at the crossroads of working and Medicare enrollment, let our team help shed light on your situation. Contact our office today to speak with a licensed Medicare professional.

Tyrone Carr & Associates (TCA) is a licensed Medicare agency with 2 decades of experience helping people make the best Medicare and Insurance decisions. TCA is located in Brighton, Michigan, and licensed in 20 states.

For more information about our services, contact our office today.