Signing up for Medicare at age 65 while still working
Hi Terry,
I will be turning 65 at end of Sept. I am still employed and am insured by my employer’s coverage. My understanding is that to avoid a future penalty with Medicare, I must at least sign up for Medicare Part A – is that correct? I have prescription coverage under my employer’s plan. Do I need to be concerned about other penalties? Also, I usually take have FSA funds deducted from my paycheck. Will signing up for Medicare effect that? Thanks in advance!
Terry Says
You do NOT have to signup for Part A — as long as you are covered at work (unless your employer plan with less than 20 people enrolled requires you to sign up for Part A).
If you are contributing to a Health Savings Account (HSA) you definitely should NOT sign up for Part A. You can no longer contribute once you sign up.
BUT if you are contributing to a FLEX Spending account, it’s ok to be on Part A.
So definitely ask your employer exactly what plan you have — and if you are not required to sign up for Part A, you can delay until you leave your job. Then sign up immediately, no matter what time of year, because when you lose your work insurance you have a SEP — special enrollment period. Do NOT take Cobra!
