Ask Larry

Larry,

I'm 65.5 years old, still working and covered by my company's health care plan. Some co workers told me that I was foolish not to apply for Medicare Part A. Is it too late? Can I enroll during open enrollment (now) without penalty or should I wait until I leave work (years from now) to apply?

Hi,

As long as you have 40 quarters of Social Security coverage (https://www.ssa.gov/oact/cola/QC.html), you can sign up for free Part A Medicare coverage at age 65 or anytime thereafter. And, the coverage can begin up to 6 months prior to your month of filing. You don't need to be in an open enrollment period to apply for free part A Medicare, and there is probably no reason not to apply for it even if the coverage is secondary to your group health plan through work.

When to sign up for Part B of Medicare is a different matter. You can apply for that coverage now as a secondary coverage to your group plan through work, or wait until you retire to sign up. The current monthly base premium rate for Part B is $121.80, and it is scheduled to increase to $134 in January 2017. People with higher incomes may have to pay more than the base rate (https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html). Most people who have coverage through their work delay signing up for Part B coverage until they retire, assuming that the premiums would be more costly than their deductibles & co-pays. But, that's a personal decision that you'll need to make on your own.

For a general overview of Medicare coverage, see the following pamphlet: https://www.ssa.gov/pubs/EN-05-10043.pdf.

Best, Jerry