65 & Still Working?

Congratulations!

Know Your Options

Making the decision about when to enroll in Medicare is an important consideration for individuals approaching the age of eligibility. You should generally sign up for Medicare when you’re first eligible (usually when you turn 65) to avoid a delay in Medicare coverage and the possibility of a Medicare late-enrollment penalty. However, factors like if you’re still working, and when you get retirement or disability benefits from Social Security, all impact when and how you sign up for Medicare.

Continue coverage under your employer-sponsored health insurance:

By delaying your Medicare Part B enrollment, you can continue your enrollment through your employer’s group healthcare plan. Additionally, you do not need to enroll in Medicare Part D (Prescription Drug Coverage) as you have Creditable prescription drug coverage through your employer’s group healthcare plan, as well. Then, when you lose your employer or coverage, you will be eligible for a Special Enrollment Period to enroll in Medicare Part B and Part D without a penalty.

If you have delayed your enrollment in Medicare Part B, before you complete your Medicare Part B enrollment with the Social Security Administration you will need to complete CMS L564 – Request for Employment Information form. This form simply confirms that you were employed and had creditable coverage when you initially became Medicare eligible to avoid a late-enrollment penalty. You will need to complete this form and provide it to the Office of Risk and Benefits Management. For assistance, please contact Sasha Diaz at sashadiaz@dadeschools.net. She will coordinate with Personnel Records to complete the benefits and employment sections.

Potential cost savings compared to Medicare premiums:

Medicare Part B comes with a monthly premium that most people need to pay. Your Cigna health insurance may come with lower premium cost compared to your Medicare Part B premium. Postponing your Medicare Part B enrollment may save you money.

Currently getting disability benefits:

If you’re under 65 and getting disability benefits from Social Security, you automatically get Medicare after getting disability benefits for 24 months or when you turn 65 – whichever comes first, except for End-Stage Renal Disease (ESRD).

If you do decide to enroll in both Medicare Parts A & B, you can opt out of the School Board-sponsored healthcare plan. In lieu of healthcare coverage, you will receive a monthly contribution paid through the payroll system based on your deduction schedule (subject to withholding and FICA). For additional information on how to decline your healthcare coverage, call the FBMC Service Center at 1 (855) MDC-PS4U (1 855-632-7748), Monday – Friday, 7 am – 7 pm ET. Please note, if at the time of your retirement, you are not enrolled in a School Board-sponsored healthcare plan, you will not be eligible to enroll in any of our Medicare offerings.

Something to keep in mind, if you delay your Medicare enrollment when you initially become eligible and do not have healthcare coverage and creditable prescription drug coverage, you may face late-enrollment penalties. The late-enrollment penalty is an additional 10% of the Medicare Part B premium for each 12-month period that you were eligible but did not enroll. This penalty is ongoing and can result in higher premiums for as long as you have Medicare coverage. Additionally, you will receive a late-enrollment penalty for Medicare Part D. This could have a significant long-term financial impact, potentially affecting your retirement budget and overall healthcare costs.

Tools & Resources

Medicare Basics

Medicare.gov

SSA – When To Sign Up For Medicare

Important Contact Information