Age Spots: Timing is Everything

My middle son graduated from high school this year. It was not a traditional graduation; it was a drive-thru graduation. We all loaded in a van, and Braden hopped out to get sanitized in his cap and gown, his name was called, and he walked across a stage to get his diploma and pictures taken. He then hopped back into the van, and we left. I was kind of let down, but he has his diploma, so he is happy and ready to face his next challenge: Marine Corps Bootcamp. Graduating during a global pandemic is just bad timing on his part.

My son is 17 and has been working for almost two years; being out of school will allow him to “work more and make more money.” He has plenty of energy and time for that to happen. Many of the clients that call Aging Matters are on the other end of that spectrum; they are finishing their careers and trying to figure out what that means for their life.

Retirement can strike fear in someone’s heart with visions of boredom or can set the mind adrift with thoughts of free time and blissful relaxation. Most people fall somewhere in the middle, and choosing when to retire can be difficult.

The majority of people become Medicare eligible at age 65. Eligibility can be earlier if you are disabled and drawing a disability check from Social Security. Many seniors who turn 65 are not interested in retiring yet; they want to continue working, or they need the income working provides. So what happens with Medicare if you are working when you turn 65? It really depends on your situation.

If you turn 65, are actively working and have an Employee Group Health Plan through your employer, you can decide to take Medicare or defer it. The majority of people do not have to pay a premium for Medicare Part A, so many choose to go ahead and take Part A.

The decision to take Part B is more complex. Medicare Part B has a monthly premium; the standard premium for 2020 is $144.60 monthly. If you have coverage through your current work or your spouse’s current work, you can defer Medicare Part B. If you have deferred Part B, when you lose coverage from your current work or lose your employment, you would need to take Part B. To apply for Medicare Part B, you have to fill out a Medicare Part B application and submit it to Social Security. That form (CMS 40-B) asks for basic information. You can even indicate on the form when you would like your Part B to start.

Your employer will also have to fill out a form (CMS L564) and submit that to Social Security. The employer will have to indicate when your dates of employment were and that you had insurance through that work.

Many people defer Medicare Part D while they are employed and have insurance from their job. If your prescription coverage is creditable, as good or better than what Medicare offers, you can put off getting a Medicare drug plan until the insurance or employment ends.

Knowing when to take or defer Medicare’s parts is important because if you do not act in a timely manner, you can have penalties and may have to wait to enroll in Medicare. Timing is important with all things Medicare.

If you have questions or need help with Medicare, please call Aging Matters at (800) 392-8771.