Since you are turning 70 and still working for a company with more than 20 employees, you are in a unique “deferment” window. Provided your employer coverage meets specific criteria, you are not likely required to sign up for Medicare Part B or an Advantage Plan right now.
1. The “20+ Employee” Rule
Because your employer has more than 20 employees, the Internal Revenue Service and Medicare consider your employer’s group health plan to be the primary payer. This means:
- Your work insurance pays your medical bills first.
- Medicare would only act as secondary insurance.
- The result: You can delay Medicare Part B (medical insurance) without facing the late enrollment penalty as long as you are still actively working and covered by that plan.
2. Social Security Versus Medicare Part B
When you apply for Social Security benefits at age 70, you will automatically be enrolled in Medicare Part A (hospital insurance).
- Part A is free for most people who have worked at least 10 years.
- Part B requires a monthly premium. Since you already have “creditable” coverage through your job, most people choose to wait on Part B to save on those monthly premium costs.
3. What About Medicare Advantage?
You cannot join a Medicare Advantage Plan (Part C) unless you are enrolled in both Medicare Part A and Part B. Since you are likely delaying Part B while you work, an Advantage Plan isn’t an option for you just yet.
Important Considerations Before You Decide
While you can delay, here are a few things to double-check:
| Factor | What to Check |
|---|---|
| HSAs | If you contribute to a Health Savings Account (HSA), you must stop contributing at least six months before you apply for Social Security/Medicare Part A to avoid tax penalties. |
| Cost Comparison | Sometimes, Medicare Part B + a Supplement is actually cheaper or offers better coverage than an employer plan. It’s worth doing a quick math check. |
| The Eight-Month Window | Once you eventually stop working or lose that employer coverage, you have an eight-month Special Enrollment Period to sign up for Part B without a penalty. |
Summary
- Medicare Part A: You’ll get this automatically when you claim Social Security. It costs $0 and works alongside your work insurance.
- Medicare Part B: You can safely decline this for now because your company has 20+ employees.
- Medicare Advantage: Not applicable until you decide to leave your work plan and sign up for Part B.
When you fill out your Social Security application, there is usually a section asking if you want to enroll in Part B. If you want to keep your current setup, you would simply indicate that you wish to decline Part B at this time due to current employment coverage.
