Q & A
Do I have to sign up for Social Security to get Medicare at 65?
Complete Question: I will be 65 in March of 2016. Lately I’ve been getting a lot of mail about signing up for Medicare and the timeframe for open enrollment. I have enough work credits for Social Security and Medicare; however, I am still working full-time at a job I’ve been doing for over 10 years. I make good money and the company has a 401k profit sharing program; therefore, I planned on waiting until age 70 to retire and then collect Social Security at the maximum amount possible. Even though I have insurance through them, I pay a high premium. I was thinking it would be nice to get Medicare, but I don’t want to sacrifice 5 years of Social Security benefit increases just to sign up for Medicare at 65. What can I do, if anything?
Answer: It sounds like you have your retirement plan in order and you have no reason to worry – there is a solution for you. As long as you have enough work credits, and you said you do, you can sign up for Medicare at 65 without starting your Social Security benefits. If you want to apply in person at your local Social Security office, simply tell them you want Medicare only and indicate if you are getting only Part A (hospitalization), or if you are also getting Part B (office visits) and/or Part D (prescription coverage). If you prefer to apply online, go to ssa.gov. Near the top of the page is a banner of topics with drop down sub-topics. Click on “Benefits”. Under that drop down, you will see “Apply” with multiple options, one of which is “Apply Online for Medicare Only”. Click on that link and it will take you directly to information about applying for Medicare, as well as an online application form.
In addition to applying for Medicare, you may also want to discuss with your employer your options under their health plan. Some employers allow employees over 65 to keep their insurance; however, some do not. If they do, you will want to find out what is covered since you will have a primary and secondary payor. This could also affect your decisions regarding whether or not to purchase Part B and/or Part D Medicare. Just remember that if you do not keep your employer coverage and you do not purchase Part B and Part D but choose to do so later, you will be subject to a late enrollment penalty. If you keep your employer coverage, the penalty will not apply as long as you sign up within 8 months of terminating your employment.
So to summarize:
- You do not need to be concerned with open enrollment in 2015, even though you might be receiving mail or other notices. You may be receiving them because your 65th birthday is approaching.
- If your employer health insurance is cancelled soon for any reason, your initial enrollment period lasts for 7 months – 3 months before your birthday, the month of your birthday, and three months after; therefore, for you it is December, 2015 through June, 2016.
- If you keep your employer health insurance and forgo Part B and/or Part D, you can avoid a late enrollment penalty as long as you sign up within 8 months of when you stop working and/or the month you stopped your employer health insurance. Keep in mind that if you terminate your employment but keep COBRA or Retiree Health Insurance, this does not count towards the 8 month time period.
- Finally, the actual enrollment process is simple once you have made your decisions. Apply online at ssa.gov or go to your local Social Security office.
C.J. Miles, MSA, MBAHCM
Research Analyst & Social Security Advisor
AMAC Foundation