Who Pays First?
- Employer with 20 or more employees: Your group plan pays first and Medicare pays second. Many people delay Part B without penalty while they're covered through active work.
- Employer with fewer than 20 employees: Medicare pays first. You should usually enroll in Parts A and B when you're first eligible.
- Retiree coverage or COBRA: This isn't coverage from current work, so Medicare pays first. Delaying Part B can lead to late penalties and gaps in coverage.
Delaying Part B Without a Penalty
While you're covered through current employment, and for 8 months after that job or coverage ends, you can sign up for Part B with a Special Enrollment Period and no late penalty. Your employer completes form CMS-L564 to confirm your coverage.
Protect Your Medigap Rights
Your 6-month Medigap Open Enrollment Period starts when Part B begins. During that window you can buy any Medicare Supplement plan without health questions. Starting Part B before you need it can use up that window.
Have an HSA?
You can't contribute to a Health Savings Account once any part of Medicare begins. Part A can be backdated up to 6 months, so stop contributions about 6 months before you enroll.
Drug Coverage
If your employer drug coverage is "creditable," you can delay Part D without a penalty. Your employer sends a yearly notice that tells you whether your coverage is creditable.
Retiring soon or not sure what to do? We'll help you time it right.