Turning 65, Medicare, Working, What to do

Turning 65, New to Medicare, and Working, What Now?

Turning 65, Medicare, Working, What to do

New to Medicare turning 65 and group insurance coverage.  Should you enroll into Medicare Part B or not?

If you plan to stay on you or your spouses group health insurance plan when you turn 65, you may not need to elect your Medicare Part B benefits (Medical Insurance). 

I’ve seen people waste thousands of dollars unnecessarily because they did enroll into Medicare Part B when turning 65.

You work your entire life and pay into Medicare. When you turn 65, a beneficiary that qualifies for Medicare will automatically get their Medicare Part A (Hospital Insurance).  Most of the time, Part A is at no cost to you.  If you are receiving Social Security, Railroad Retirement, under 65, have a disability, have ALS, or live in Puerto Rico, and get benefits from Social Security or RRS, then you will automatically be enrolled into Medicare Part B (Medical Insurance).

Medicare Turning 65 and Medicare Part B, Working, On Group Health Insurance – What to do:

Creditable Coverage

First, make sure you have creditable medical and prescription coverage through you or your spouses employer group insurance coverage.

If it is creditable coverage you don’t need Medicare Part B.  No penalties will be accessed as long as you are covered under the group insurance policy.

So let’s say that you’re working and don’t want Medicare Part B because you have creditable group insurance and were automatically enrolled into Medicare Part B. What now?  Follow the instructions on the back of your Medicare card.

If you don’t do anything and keep the card here’s what happens next:

You will be charged per month even though you’re covered through your employer.

If you are receiving Social Security Benefits then the cost of Medicare Part B will be automatically taken out of your check each month. The amount will be $121.80 (some may have to pay less and some more depending on your income).  This amount does change from year to year.

If you’re not receiving Social Security benefits.  If you will get a quarterly bill from Social Security.

As you can see, electing your Medicare Part B benefits can be costly if you continue to work and are covered under your group insurance plan.


Joe is turning 65 and new to Medicare.  He decides that he isn’t ready to retire.  Joe was told to call Social Security and tell them that he needed to get his Medicare benefits.

Joe has a group health insurance policy, which has creditable coverage, so he doesn’t need his Medicare Part B benefits.

If he had enrolled into Medicare Part B it will cost Joe $121.80 each month until he retires.  So let’s say that Joe retires three years later and Medicare Part B does not increase. Joe would have spent $121.80 per month.  Multiply that by three years of premium.  That would equal $4,384.80 that he should have saved.
($121.80 x 36 = $4,384.80)

It’s wise to compare your group health insurance coverage and costs with Medicare and Medicare supplemental benefits costs and coverage.

If you have questions about Medicare and group health insurance, we have the answers.

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