Medicare eligibility and deferral, how do I avoid a penalty?

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Medicare eligibility and deferral, how do I avoid a penalty?

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I am shortly going to be eligible for Medicare but I am still working and will continue to work for several more years. I have health insurance for me and my husband through the City government, for which I work. How do I avoid paying a penalty for deferring my enrollment in Medicare Part B?

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This may help: medicare.gov/sign-up-change-plans/get-parts-a-and-b/employer-coverage/i-have-employer-coverage.html

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I also will have to deal with this next year. I am not sure. I think we have to sign up for Medicare just so they know we are here. Our employer health insurance would be primary with Medicare secondary. I am sure someone around here knows for sure. There is someone at my office that did not register because they had coverage from work. And yes, they were fined.

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While you're asking HR, yes you MUST sign up for Medicare 3 months before your 65th birthday 3 months after; just went thru with husband who still works.

He checked everything out with Medicare while working, told ONLY need Hospitalization until you retire; then it becomes a horse of a different color.

BEWARE OF CALLS WANTING TO TALK WITH YOU ABOUT YOUR MEDICARE. NO ONE SHOULD BE CALLING YOU PER MEDICARE CSR DEPT!

You may also want to inquire about your Social Security benefits.

Baby boomers (check the cut off year) are able to collect FULL retirement benefits AND still work making same salary or change jobs.

There isn't a penalty $$ wise, so you are able to make as much money as you want while collecting benefits.

My husband will soon be retirement age, but plans to keep working and place the retirement benefits in CDs, 401, savings etc so when he does retire.

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Call your local Area Agency on Aging. They usually have experts that can help you through any questions that you have.

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Here is what I understand about both of your questions: If you have health insurance with your employer that will continue after you turn 65, you should still sign up for Medicare Part A. This is the part that covers hospital costs. Most employer coverage requires that you have this as primary for hospitalizations. If your employer coverage is at least as good as the Medicare Part B, which you need to pay for, you can forego Part B as long as you have the employer coverage. Your HR department should have information about your coverage. If you already have coverage that pays for prescriptions, then you don't need to pay for Medicare Part D. When your employer coverage stops, you should get a form from that company that proves that you had coverage that replaced the need for Parts B and D. It is this form that protects you from the late enrollment penalties. Be sure to sign up for Parts B and D right away when your employer coverage ends.

Second question - you can start receiving SS benefits at age 62 at a reduced rate (75% of your FRA benefit), but your benefit will be reduced if you earn over the allowed amount. When you reach your Full Retirement Age (FRA), you can earn an unlimited amount without having your SS benefit reduced. Special rules apply in the year that you reach FRA. If you were born during the years 1943 - 1954 your FRA is 66. For every year that you delay taking benefits after reaching FRA, your benefit will increase by 8% up to age 70. So if your FRA age benefit is $2,000, you would get $1,500 if you take it at 62, $2,000 at age 66 and $2,640 at age 70. There are also some special benefits for couples who turned 62 before 2016. If one spouse is taking benefits, the other spouse can take spousal benefits (50% of their spouse's FRA benefit) at FRA, and then apply for their own benefit as late as age 70.

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Medicare dot gov has all the details, as does a phone call to 800-medicare.
AND yes there is a fine for not signing up even if you have employer insurance.
Alternatively, you may make an appointment with the local social security office and they will process your application with you --- and tell you what you have to bring to the appointment. The process is truly easy whichever method works best for you.
You should also check with your employer benefits group to understand which plan is primary for you and any covered dependents.

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Barb - also ask HR if once Medicare eligible will it be the situation that for any scheduled / preadmit hospitalization (anything that would fall into Part A coverage) will Medicare be your primary insurer.

Hopefully NOT as just another layer of complexity...... but do ask.

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Glad, there are limits to what you can make in salary and still collect SS benefits, up until the age of 70, I think it is.

If you are still working and eligible to collect SS, there is a dollar amount above which they start reducing your benefit.

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You will have to get a letter from your employer stating that you had health insurance through them. Then you will not incur a penalty when you do sign up for Medicare. How do I know this? Because that's what I had to do.

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Geewiz is spot on.
I’d like to add that if your or your hubs’ current employer based is HSA type of account, you’ll need to get with your HR/benefits Dept as you cannot contribute pretax $ into a HSA once signed up for Medicare.

Medicare eligibility and deferral, how do I avoid a penalty?

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