What you need to know if you continue working after you reach age 65. If your employer offers group health insurance, how does Medicare affect you regarding Medicare?
Generally, if your employer has 20 or more full-time employees, and you’re age 65 or over, you’re entitled to the same group health benefits as any other employee. The group health coverage is primary, and Medicare will pay only those charges not covered by the employer’s plan. This may also apply to your spouse if over age 65 and covered as a dependent under your employer’s plan, even if you’re still under age 65. Thus, Medicare is the secondary payor.
If you’re age 65 or over and your employer has less than 20 full-time employees, while still entitled to the employer health coverage, Medicare is primary. You must have Medicare Parts A & B. While continuing to work full-time, your employer group plan will essentially act as a supplement plan. In this situation, it’s often more cost-effective for you to drop the employer group plan and secure a Medicare Supplement plan and a separate drug plan, depending on how much you pay for your group plan. Also, many employers prefer this and pay for the supplemental and drug plan while you’re still working full-time, as often it’s far cheaper for them than paying for the group plan.
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