1. DON’T MISS YOUR ENROLLMENT WINDOW
Your Initial Enrollment Period lasts 7 months — starting 3 months before your 65th birthday, including your birthday month, and ending 3 months after.
Missing this window can lead to lifetime penalties:
- Part B (Medical Insurance): 10% penalty for each full year you delay without qualifying coverage.
- Part D (Prescription Drugs): 1% penalty per month without qualifying drug coverage.
You may delay Medicare if you’re still working and your employer’s plan is “creditable” (as good as Medicare). Most large employers qualify; smaller ones (under 20 employees) often do not. Get written confirmation each year from your benefits office that your plan is creditable.
2. WATCH FOR HSA TAX TRAPS
Once enrolled in any part of Medicare, you can’t contribute to a Health Savings Account (HSA). Continuing contributions after enrolling can trigger a 6% annual penalty until the excess is removed. If you plan to start Social Security, stop HSA contributions six months before applying—Medicare Part A starts retroactively.
3. CHOOSE THE RIGHT COVERAGE FOR YOU
At retirement, most people choose between:
- Original Medicare (Parts A & B + optional Part D + Medigap)
- Broader doctor choice and nationwide coverage
- Higher premiums and more separate pieces
- Must buy Medigap within 6 months of enrolling, or risk denial or higher costs
Medicare Advantage (Part C)
- All-in-one plans offered by private insurers
- Lower overall costs, includes drug coverage
- Limited provider networks—may be an issue if you travel or live in multiple states
Tip: Review your plan each year during open enrollment — coverage and costs change annually.
4. PLAN FOR LONG-TERM CARE
Medicare covers very little of long-term or custodial care. A separate insurance plan or savings strategy is essential.
5. GET HELP AND GUIDANCE
• Financial advisors can coordinate your health coverage with your retirement plan.
• Employers can confirm your coverage status and help time your enrollment.
• State Health Insurance Assistance Programs (SHIP) offer free, unbiased help specific to your state.
Bottom line: Understanding your options early can help you avoid penalties, preserve your tax advantages, and choose the right coverage for your retirement lifestyle.
