There are many variables that come into play when turning 65 and still employed. Those employees eligible for Medicare have options. Here are the most common situations:
Your company has more than 20 employees:
As an employee who is turning 65, you have the option to continue with the employer provide group health insurance policy until you retire. You also have the ability to enroll in Medicare as well. Most people in this situation tend to stay on the group health plan, but sign up for Medicare Part A. Medicare Part A comes at no cost, and then acts as secondary insurance to your group plan. So in the event that you have something that the group plan does not cover, there is a chance that the Part A will take care of it.
Others ultimately decide to refuse the group plan completely and then sign up for Medicare Parts A and B.
Some of course, stay with the group plan and don’t enroll in Medicare at all until retirement.
One important item to note is that once you have signed up for Medicare, you can no longer make contributions to your Health Savings Account (HSA).
Your company has fewer than 20 employees:
In this situation, your employer does have the right to force you into signing up for Medicare Parts A and B instead of remaining on the group health plan. In that event, Medicare becomes your primary insurance. While the employer can remove you entirely from the group plan, they do have the option of leaving you on for coverage secondary to Medicare. It is recommended that you not only sign up for Medicare Parts A and B, but that you also decide on a Medicare Supplement and Prescription Drug Plan OR a Medicare Advantage Plan in order to avoid any future penalties.