Retiring Soon? Here's What You Need to Know About Medicare

Retirement is a major life milestone—and as you prepare to trade meetings and deadlines for travel and leisure, there's one essential item to put on your checklist: Medicare. Understanding how Medicare works when you retire can help you avoid penalties, ensure continuous health coverage, and protect your finances.

When Should You Enroll in Medicare?

Most people become eligible for Medicare at age 65. If you're already receiving Social Security benefits, you’ll be automatically enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance). If not, you’ll need to sign up manually through the Social Security Administration during your Initial Enrollment Period (IEP)—a 7-month window that begins 3 months before your 65th birthday, includes your birth month, and ends 3 months after.

Important: Delaying enrollment in Medicare Part B or Part D without other creditable coverage could result in permanent penalties.

Retiring Before Age 65?

If you’re retiring before 65, you won’t qualify for Medicare yet. You’ll need to explore other health insurance options like:

• Marketplace (ACA) plans

• Spouse’s employer coverage

• COBRA (continuation of your employer plan)

Once you turn 65, you can transition to Medicare as your primary coverage.

Still Working at 65?

If you're working past 65 and have employer coverage, you may be able to delay Part B and Part D without penalties—but only if your coverage is considered creditable. For groups larger than 20 employees, this is usually the case.

When you retire later, you’ll get a Special Enrollment Period (SEP) to sign up for Medicare within 8 months of losing your employer coverage.

What Does Medicare Cover?

Here’s a quick breakdown:

• Part A: Hospital stays, skilled nursing, hospice—usually premium-free if you’ve worked 10+ years.

• Part B: Doctor visits, outpatient care—monthly premium required.

• Part D: Prescription drugs—must be purchased separately or through a Medicare Advantage plan that includes it.

• Medicare Advantage (Part C): An alternative to Original Medicare that bundles Parts A, B, and often D.

• Medigap: Supplemental insurance to help with costs like deductibles, copays, and coinsurance.

Medicare Advantage vs. Medigap: Which Should You Choose?

• Medicare Advantage (Part C) is often lower in upfront cost and includes extras like dental, vision, and hearing—but it usually comes with a provider network.

• Medigap gives more freedom to see any Medicare-approved provider and helps with out-of-pocket costs, but you’ll also need a separate Part D plan.

Choosing the right option depends on your lifestyle, healthcare needs, and budget. This is where working with a licensed Medicare agent can be especially helpful.

Final Thoughts

Don’t wait until the last minute to plan your Medicare transition. Making the right choices when you retire can save you money, avoid coverage gaps, and give you peace of mind.

If you’re nearing retirement and unsure what to do next, I’m here to help. As a licensed Medicare agent, I can walk you through your options and help you enroll in a plan that fits your needs.

Contact me now to go over your options.