When the Medicare health insurance program launched in 1966, benefits kicked in at the then-common retirement age of 65.
Today, working past age 65 is more common. But if you expect to continue to work at age 65 and beyond, you run the risk of making a potentially crippling financial mistake with your health insurance coverage.
The two major pieces of Medicare are Part A for hospital costs, and Part B for just about everything else, other than prescription drugs (that falls under Part D). If you've worked for at least 10 years, you can sign up for Part A at 65 without owing any premium. There's no reason not to sign up for Part A at 65.
Part B is trickier because most everyone pays a monthly premium for Part B coverage. In 2021, the minimum monthly Part B premium is $148.50. That's per person. There is no household coverage under Medicare. While lower-income enrollees may qualify for premium relief, individuals with income of at least $88,000 and spouses filing a joint tax return with income of at least $176,000 will pay higher premiums.
It's totally logical if you're still working at 65 and have workplace insurance to presume you don't yet need to sign up for Part B and take on the premium costs.
That can be a costly mistake.
The insurance company that runs your company's health insurance plan may deny you coverage for all the care that falls under the umbrella of Part B of Medicare. On top of that, you will also run into a penalty for your Part B premium that will stick with you for the rest of your life.
What matters at 65 is how many employees are at your business.
