Are you still under-employed and approaching the age of 65? If so, you may be deciding whether or not to enroll in Medicare. While it is true that Medicare can provide excellent health coverage, there are several factors you should consider before making your decision.
In this blog post, we will explore the top things to consider before signing up for Medicare if you’re still working. From understanding the impact on your social security benefits to evaluating recent healthcare costs, we’ll help guide you through this important decision-making process.
Social Security Impact
Medicare A and B, when signed up, are the only way to get social security benefits. But if you put off signing up for Part B because you have employer-sponsored insurance, ensure to enroll within eight months of quitting your job or losing your employer-sponsored insurance.
Delaying enrollment may incur penalties that raise monthly premiums for the rest of your life. Meanwhile, it might be better for you to wait to enroll in Medicare without penalty if you don’t currently receive social security benefits and intend to delay them until a later age.
Employer Group Insurance
When considering signing up for Medicare while still working, one important factor to consider is whether or not you have employer group insurance. Many people assume they need to enroll in Medicare as soon as they reach 65. But if you’re still working and receiving health benefits through your employer, this may not be necessary.
Employer group insurance can provide comprehensive coverage for medical expenses. These include hospital stays, doctor visits, and prescription drugs. Some plans may even cover dental and vision care. Additionally, with an employer-sponsored plan, you often receive a broader network of providers to pick from.
Health Savings Account
If you’re still employed, you need to look at your HSA. We know that HSAs are tax-advantaged accounts that allow individuals with high deductible plans to cut costs on healthcare expenses.
If you have an HSA and continue working past age 65, you can still contribute to it until you enroll in Medicare. However, once you enroll in Medicare, you can no longer make contributions to your HSA. You can still use the funds from your existing account for qualified medical expenses tax-free.
Some employers may offer a retiree HSA contribution after retirement if they have continued coverage through their former employer’s group plan. It’s best to check with your employer and financial advisor about how this could affect your overall retirement planning strategy.
Recent Healthcare Costs
Healthcare costs have been on the rise over the past years, causing many people to worry about how they will afford medical care when they retire. If you’re still working and considering signing up for Medicare, it’s more than important to be aware of recent healthcare cost trends so that you can make an informed decision. You’ll be encountering with increasing prevalence of chronic conditions, including diabetes and heart disease, which can cost you an arm and a leg.
Prescription drug prices are also contributing to healthcare fluctuation. But you can still manage your healthcare costs while still receiving quality care. For example, consider shopping around for providers who offer competitive pricing or negotiating with your physician or hospital for a lower rate.
Deciding whether to sign up for Medicare while still working can be a complex decision. If you’re planning on resuming work past the age of 65 and have employer-provided health insurance that meets your needs, it may make sense to delay signing up for Medicare. However, if you do not have adequate coverage from your employer or are self-employed with no group coverage options available to you, enrolling in Medicare could be crucial.