I turn 65 in August, but I am still working full-time and have great insurance through my employer. I heard that there are penalties if I don’t sign up for Medicare on time, and I’ve also been told that I don’t have to sign up if I’m working. Which one is it? Do I need Medicare if I’m still working? I need to know when to sign up for Medicare.

-Dora (Lady Lake, FL)

Do I need Medicare if I’m Still Working?

This is a common question asked by new Medicare beneficiaries: Do I need Medicare if I’m still working? The answer depends on your current health coverage. Let’s talk about when to sign up for Medicare, what creditable coverage means, and how to avoid unnecessary late enrollment penalties.

When to Sign Up for Medicare

For most people, the first chance to enroll in Original Medicare (Part A and Part B) is during the Initial Enrollment Period (IEP)— a 7-month window that starts 3 months before your 65th birthday, includes your birthday month, and ends 3 months after your birthday month. Missing this window could cause you to face late enrollment penalties unless you qualify for an exception, such as having creditable coverage from your employer.

What is Creditable Coverage?

Creditable coverage provides benefits as good as or better than Medicare. Your employer is required to send you an annual notice stating whether your coverage is creditable. Those who have creditable coverage can delay Medicare enrollment without penalty. While many people enroll in Medicare as soon as they are eligible, others delay Medicare to keep their employer’s health insurance. However, if you delay Medicare improperly, it could lead to late enrollment penalties.

🔹 Important: Keep documentation of your creditable coverage, as you may need it when you enroll in Medicare later.

When Can You Delay Medicare Without Penalty?

You can delay Medicare Part B (medical insurance) and Part D (prescription drug coverage) without penalty if you have creditable coverage. If your employer has 20 or more employees, your health plan is likely creditable. Alternatively, if your employer has fewer than 20 employees, Medicare becomes the primary payer, so you may need to enroll in Medicare to avoid gaps in coverage.

🔹 Important: Part A (hospital insurance) is usually premium-free if you’ve worked and paid Medicare taxes for at least 10 years. Many people enroll in Part A while working since it won’t cost anything.

When to Sign Up for Medicare After Leaving a Job

If you delay Medicare while working and then retire, you get an 8-month Special Enrollment Period (SEP) to enroll without penalties. This SEP starts either the month after your employer coverage ends or the month after you stop working—whichever happens first

During this 8-month window, you can enroll in Part A, Part B, and Part D.

🔹 Important: Even though the SEP lasts 8 months, you only have 63 days to enroll in a Medicare Part D plan before facing penalties.

Understanding Late Enrollment Penalties

Delaying Medicare without creditable coverage can trigger permanent penalties:

📌 Medicare Part B Penalty:

• 10% increase in your premium for each 12-month period you delayed enrollment.
• You must pay this penalty for life.

📌 Medicare Part D Penalty:

• 1% of the national base beneficiary premium for each month you went without creditable drug coverage.
• This penalty also lasts for life.

🔹 Important: Avoid penalties by enrolling during your IEP or SEP if you don’t have creditable coverage.

How to Sign Up for Medicare

When you’re ready to enroll in Medicare, you can do so by:
📞 Calling Social Security at 1-800-772-1213
🏢 Visiting your local Social Security office
💻 Applying online at SSA.gov

Conclusion

So, do you need Medicare if you’re still working? The answer depends on your employer’s health plan and whether it qualifies as creditable coverage. If your coverage is creditable, you can delay Medicare without penalties. Otherwise, it’s best to enroll during your Initial Enrollment Period to avoid late enrollment penalties.

Thank you for taking the time to write to us. I hope this helps clear up the confusion!

Sincerely,

Your AMAC Medicare Advisor.

For help with Medicare plans – or any questions you may have about Medicare – contact AMAC’s Medicare Advisory Service at 1-855-611-4856 or request a quote here.