It depends on how you are receiving your current insurance. If you are receiving employer-sponsored health insurance through either your or your spouse’s job when you turn 65, you may be able to keep your insurance until you (or your spouse) retire.
You will need to contact your employer’s benefits representative to find out whether or not they will continue your coverage when you turn 65. Since Medicare Part A is premium-free for most beneficiaries, you may want to enroll in Part A as soon as you are eligible (i.e., three months prior to the month of your 65th birthday), even if you will continue to receive employer-sponsored insurance at that time. If you are covered under an employer plan, you may want to delay signing up for Part B until you (or your spouse) retire(s). However, it is a good idea to confirm you will not face a penalty for late enrollment. Similarly, unless you have drug coverage that is as good as what Medicare drug plans offer, you will need to sign up for a Medicare prescription drug plan when you enroll in Medicare or you may face a late enrollment penalty.
If you do not sign up for Part B at the appropriate time, you may face a late enrollment penalty that will increase your Part B premium by 10% of the standard monthly premium for each 12-month period that you delayed enrollment. Similarly, there is a late enrollment penalty if you do not sign up for Part D coverage when you were first eligible to do so and do not have drug coverage that is as good as what Part D offers (“creditable coverage”). The Part D penalty for late enrollment is equal to 1% of the national average premium multiplied by the number of months you did not have “creditable” drug coverage.
If you have coverage through a Marketplace plan, you should sign up for Medicare when you turn 65 and notify your Marketplace plan that you now qualify for Medicare coverage. Your Marketplace coverage will not be canceled automatically by your plan when you turn 65 and sign up for Medicare.
If you decide to drop your Marketplace coverage when you become eligible for Medicare, make sure your Medicare coverage has started before you cancel your Marketplace plan so that you avoid any gaps in coverage. You can start signing up for Medicare three months before your 65th birthday.
Our agents will help you review all of your Medicare health plan options, and can assist you in comparing your existing coverage to Medicare, to ensure you are in the best plan for your needs.