Dear Toni,
I have a Medicare question that affects my husband and me personally: He turns 65 on April 27, 2013. He plans on working until he is 66.
As I understand it, his basic Medicare A kicks in at 65? Right? Then he waits until he’s ready to retire before he applies for Medicare B and D? Just want to make sure we don’t mess up. I appreciate your help! Debra from Dallas, TX
Hello Debra:
Turning 65, enrolling in Medicare and delaying your Medicare Parts B and D because you are still working and have medical coverage from an employer can be very confusing Below is what I advise clients about delaying Parts B and D.
1) Can I get “the” penalty if I delay my Part B and Part D because I have my medical benefits that are credible coverage from an employer?
Answer: Medicare Part A begins the first day of the month you turn 65. Part A (Hospital) is at no cost because you have worked 10 years or 40 quarters and paid taxes for the Medicare benefits. But for Part B (Medical), it has a premium and one can enroll in it. But one can delay Part B if they are “still working” full-time and have company (not individual) benefits.
Follow the rules just as Social Security and Medicare states. Delaying Part B is found on Page 24 of the 2012 Medicare & You handbook and it states: “if you or your spouse is “still working” and you have health coverage through that employer, contact your employer or benefits administrator (HR department) to find out how your coverage works with Medicare. It may be to your advantage to delay Part B enrollment.” Always talk to your HR department before delaying Part B or Part D!
Every October, your employer should give its employees a document declaring if the company prescription drug benefits for the next year will be credible coverage for Medicare Part D. The group plan can be credible for Part B, but might not be credible for Part D, the Medicare Prescription Drug plan. With the cost of health insurance, many companies now have $3,500 or $5,000 high deductible plans and HSAs, which you must meet the deductible before your prescription drug plans begin. This high deductible plan may not be credible for Medicare Prescription drug Part D by Medicare rules.
If that is the case, you can delay your Part B and may want to enroll in Part D to not receive the Part D penalty. Even though, Part B and D are voluntary, if you do not enroll when you are eligible, then you may receive the penalty when you enroll later. Confusing I know!!
2) How do I delay receiving Parts B & D?
To enroll in Part A only and delay Parts B &/or D, contact Social Security at 1/800-772-1213 or go online to www.socialsecurity.gov, you may also want to visit your local Social Security office. Advise Social Security, that you wish to delay Part B and enroll in Part A only. You will want a Special Election Period (SEP) when you no longer have company benefits and are no longer working.
** *It is very important to contact Social Security, when delaying Parts B and D. Many do not and have problems because Social Security did not know that they were delaying their Parts B and/or D due to the Medicare beneficiary having company benefits. ***
If your company does not have credible coverage for prescription drugs, then you can delay your Part B and enroll in Part D for prescription drugs. Penalty for late enrolling in Part D is found on page 90-91 of the 2012 Medicare & You handbook.
Toni King is an advocate/consultant for those “Confused about Medicare”. Email questions to toni@tonisays.com or call 281/830-3896. Visit Toni’s website and blog at www.tonisays.com.
