Did I make a mistake enrolling in Medicare?

Dear Toni: I just enrolled in Medicare Parts A and B because I turned 65 in June. I am still working, and my husband, James, and I are on my employer health insurance plan.

I recently received a letter from Social Security saying that I am being charged a much higher premium for Part B because of my 2023 tax return showing higher earnings. Now I am wondering if I made a mistake by enrolling while working.

Can you please explain what someone turning 65 with employer benefits should do? —Tammy, Clear Lake, Texas

Dear Tammy: The good news is Medicare allows people with employer health benefits to delay enrollment in Medicare Parts A (hospital insurance) and B (medical insurance) without penalties.

Tammy, you should terminate your Part B immediately by filing form CMS 1763.

With that in mind, it’s important to know how Medicare defines employer group health coverage.

The 2025 “Medicare & You” handbook explains that having employer or union health coverage while working full time qualifies the employee to delay Medicare enrollment. If you are in this situation, then you can delay Medicare Part A or Part B for the working individual and a nonworking spouse.

On the other hand, COBRA and retiree health coverage do not count as current employer coverage, according to the Medicare handbook. If you have this type of health insurance coverage, you cannot delay your Medicare Part B without penalty.

Most individual health plans, such as those through the Health Insurance Marketplace, will not qualify as acceptable health insurance coverage.

Once the working spouse retires and you’re enrolling in Medicare past age 65, use the eight-month special enrollment period to keep from incurring a penalty.

I should also note that some companies may ask that you enroll in Medicare once you are eligible, regardless of whether your spouse continues to work for the company. Therefore, it is important to check with your spouse’s human resources department to determine whether, once you’re 65 or older, you are still able to have health care coverage under a working spouse.

Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.