Think you can safely delay Medicare just because you’re still working? Think again. 👇
One of the most frequent—and expensive—mistakes people make when turning 65 is assuming their employer’s Health insurance automatically counts as creditable coverage. If you get this wrong, you can face lifetime late-enrollment penalties and major gaps in coverage.
Whether your current group health insurance allows you to delay Medicare Part B depends directly on the size of your company. Medicare strictly dictates that for an active employer plan to be considered primary, the company must have 20 or more employees. If your employer has fewer than 20 workers, Medicare becomes your primary insurance the moment you turn 65, meaning you must enroll in Part B to avoid lifelong penalties and massive unpaid medical bills.
🔑 Key Takeaways:
– The 20-Employee Threshold: If you work for a small business (under 20 employees), your group plan automatically shifts to secondary coverage at age 65, making Medicare enrollment mandatory.
– Active vs. Retiree Coverage: To delay Part B without a penalty, the coverage must come from an active employer plan. Retiree health benefits or COBRA do not qualify as creditable coverage.
– Spousal Plan Nuances: If you are covered under a spouse’s active employer plan, the same 20-employee rule applies to their company to safeguard you from penalties.
Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/
