MediWhat.Info • Plain-English Medicare education

Retiring After 65

Leaving employer coverage after 65 can be straightforward — if the timing is handled correctly. Here is what to check before your last day of coverage.

Retirement creates a Medicare deadline

If you delayed Part B because you or your spouse had qualifying coverage based on current employment, you generally have an 8-month Special Enrollment Period after the employment or group health coverage ends, whichever happens first. But waiting eight months may leave you without the coverage you actually need.

COBRA does not extend the Part B clockThe 8-month Special Enrollment Period starts when current employment or qualifying job-based coverage ends — even if you elect COBRA. COBRA is not treated as current-employment group health coverage for this purpose.

A smoother retirement sequence

  1. Ask your employer for the exact date your active employee health coverage ends.
  2. Plan your Part B effective date so you don't create a gap.
  3. Complete the Social Security enrollment process and proof of prior employer coverage when required.
  4. Choose how you'll receive Medicare benefits and how prescriptions will be covered.
  5. Do not cancel existing coverage until replacement effective dates are confirmed.

Forms you may encounter

People enrolling in Part B after delaying it because of employer coverage commonly use CMS-40B (Application for Enrollment in Medicare Part B) and CMS-L564 (Request for Employment Information) to document employer coverage. Social Security also offers online enrollment options in many situations.

Mike & Tracy's tipStart the conversation before retirement, not after. We like to work backward from the date employer coverage ends so your Medicare and other coverage can line up cleanly.

What about retiree insurance?

Retiree coverage is not the same as insurance based on current employment. Some retiree plans require you to have Parts A and B and then pay secondary to Medicare. Ask the plan administrator exactly how the retiree coverage coordinates with Medicare before delaying enrollment.

What should you compare?

QuestionWhy it matters
Doctors and hospitalsNetwork rules differ between Medicare Advantage and Original Medicare.
PrescriptionsFormularies, pharmacies and drug costs can vary widely.
TravelFrequent travel or living in more than one area can affect which structure fits better.
BudgetCompare premiums with deductibles, copays and worst-case exposure.

Official references: Medicare — Working past 65 and Medicare — COBRA coverage.

Still have questions?

Medicare is personal. If you want help understanding how these rules fit your situation, Mike & Tracy can walk through it with you. There is no additional cost for our assistance.