Medicare and Working Past 65
- At March 30, 2011
- By ReplusMN
- In Medicare
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Recently I have run into many people missing their deadline for enrolling in Medicare when their employer coverage stops after 65. Please take note that you must file the appropriate paperwork with Social Security in order to avoid the premium penalties and gap in coverage.
If you have employer health care coverage past age 65 because you or your spouse is still working, you have an 8 month Special Enrollment Period to sign up for Medicare when your (your spouse’s) work or coverage ends, whichever comes first. With the current economic “encouragement” of retirement, people close to 65 or over 65 may get into trouble if they use COBRA for 18 months or their employer provides coverage for more than 8 months after employment or coverage stops.
If you deferred Medicare Part B and/or Part D because you had employee coverage acceptable to Medicare when you turned 65, make sure you submit Social Security Administration Form L-564 and CMS (Center for Medicare and Medicaid Services) Form 40B to the Social Security Office before you or your spouse leaves work, preferably at least a month before. Going online or calling will not be sufficient.
Form L-564 SSA Form L-564 Form L-564 must be completed by the HR office of the employer and verify the end of employment and health care coverage.
Form 40B CMS Form 40B You fill out Form 40B stating the date that you wish to enroll in Medicare Part B. You can submit this form up to 3 months before the end of your work or employer coverage to have Medicare Part B be effective when your employer coverage stops. You must have it submitted before your ending date in order to not have a gap in coverage.
Both of these forms must be received by Social Security before you can sign up for Medicare Part D, an Advantage Plan or a Medicare supplement. When these forms are received by Social Security, this will begin your 8 month Special Enrollment Period.
If you miss this period, you can only sign up for Part B between January 1 and March 31, and it will be effective July 1 of that year, AND you will be subject to a 10% premium penalty for all the years you could have had Part B and did not. If you miss this period, you can only sign up for Part D between October 15 and December 7, and it will be effective January 1 of the following year, AND you will be subject to a 1% per month premium penalty for each month you could have had Part D and did not.
So please put these forms on your list of things to check on before retirement!
