Ask the Expert: Should I apply for Medicare if I'm covered under my spouse's health plan?

Next year, I’ll be retired and covered under my wife’s employer’s group health plan. I haven’t yet applied for Medicare. Should I apply for Part A at this time? I don’t want to be penalized later on for not applying. I don’t need Part B as I’ll be covered in my wife’s plan.

You don’t need to apply for Medicare at 65 if your wife’s plan will cover you. But check with her employer’s HR department. Some insurers do require Medicare-eligible people in their plans to sign up for Medicare Part A, which is free for anyone who has worked for at least 10 years.

For readers who don’t know, Medicare Part A covers hospital charges, Part B covers doctors’ visits, and Part D covers prescription drugs. People who qualify for free Part A coverage aren’t penalized for late Part A enrollment. But if you enroll late in Parts B and D, you’ll pay permanently higher premiums.

Your Part B and D enrollment deadline will be eight months after your wife leaves her job or your coverage in her plan ends, whichever comes first.

Consider signing up for free Part A now even if you don’t have to. It will be secondary to your group coverage and might cover expenses the group plan doesn’t. One caveat: If you have a Health Savings Account (HSA), stop contributing to it six months before signing up for Medicare to avoid a tax penalty. Medicare enrollees can’t contribute to HSAs.

Other readers take note: This column applies only to people in a group plan covering 20 or more workers! If you’re in a smaller group plan, you must enroll in Medicare at 65.

The bottom line

If you’re in an employer’s group health plan, your Medicare enrollment deadline depends on the size of that plan.

More information

bit.ly/medicareworkingpast65

bit.ly/medicareandinsurance