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Age 65 and still working? What to do about Medicare

Print | Comments () Posted by Cheryl Costa June 21, 2012 09:21 AM

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Many, many people are now working past the "usual" retirement age of 65. If you are one of these people but you have also reached your full retirement age (FRA) and want to begin receiving Social Security benefits, you need to be aware that you are not required to sign up for Part B of Medicare.

Part B of Medicare is the part that involves premiums. For 2012, the premium starts at $99.90 per month but the premium varies with income levels and some people pay as much as $319.70 per month. If you already have medical insurance through your employer, it is important to know that you can opt out of Medicare. However, the default is that the election (and associated premium deduction) is mandatory so you must specifically decline the coverage when you sign up for Social Security benefits.

It is also important to note that if you leave your job and your medical insurance ends, it is your responsibility to sign up for Medicare within 8 months. Failure to do so will result in the assessment of premium penalties and a possible delay in getting coverage.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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Local finance professionals share insights and advice on issues such as budgeting, managing debt, and retirement planning.

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About the contributors

Andrew Chan is the founder of Integrative Financial Advisors in Framingham. He provides comprehensive financial planning advice and investment management services. He has been an adviser for over 12 years and works with clients to integrate all aspects of their finances including investments, retirement, education funding, and tax planning.

Cheryl Costa is a principal at Forteris Wealth Management which is an independent, fee-only firm with offices in Framingham and Purchase, NY. She advises clients on investing, education funding, taxes and retirement planning. She has a BS from Worcester Polytechnic Institute and an MBA from Boston University and she is a Certified Financial Planner.

Jamie Downey has been an accountant for more than 14 years. He's a partner at Downey & Co. in Braintree. Prior to joining the firm, he served as a manager in the audit department of accounting firm KPMG.