How Medicare works with employer coverage
Still working at 65 with employer health coverage? You may be able to delay parts of Medicare without penalty — but the rules depend on your employer’s size, and getting it wrong can be costly. Here’s how to coordinate both.
If your employer has 20 or more employees, its plan generally pays first and you can usually delay Part B without a penalty, then enroll later through a Special Enrollment Period when you retire. If the employer has fewer than 20 employees, Medicare often becomes the primary payer, so enrolling on time is important to avoid gaps.
Once you enroll in any part of Medicare, you can no longer contribute to a Health Savings Account. And you’ll want to confirm your employer drug coverage is “creditable” so you don’t face a Part D penalty later. We help you time it all correctly.
Free licensed guidance in 5 languages — or quote yourself online.
Usually yes, since it’s premium-free for most people — unless you’re contributing to an HSA, in which case enrolling in Part A ends your HSA contributions. It’s a common trade-off we help clients weigh.