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  • Delay Medicare Enrollment, Still Working.

    Will turn 65 later this year and still working in a comfortable group practice with ample time off. Have group health insurance provided and we max out our high deductible HSA. My limited understanding is if I enroll in Medicare, I cannot receive an HSA contribution. Our business manager consulted our health insurance rep who initially said I did not need to do anything. Later she said perhaps I should contact SSA and tell them I wish to defer enrollment as they may automatically enroll me in part A.
    Anyone else faced this situation and can share what they did? I practice and live in Oklahoma.

  • #2
    https://www.medicare.gov/basics/get-...orking-past-65
    Your best bet is to understand Medicare.
    Example:
    You should sign up for part A only. There are Medicare penalties down the line if you don’t.
    It is free.
    Continue your healthcare plan.
    When you retire, that is when you need to then sign up for part B and part D and a supplement.


    Call 1-800-MEDICARE They do a great job explaining the process if the link leaves questions or want a second opinion.

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    • #3
      Google medicare school. com lots of useful info. I just completed signing up for Medicare. I found using a medicare "guide" was useful. I watched some videos done by Marvin Musick who runs medicare school.com. You can delay part B and D if you have other insurance.

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      • #4
        • You are only automatically enrolled in Medicare if/when you enroll in Social Security.
        • If your employer has >= 20 employees. You should NOT enroll in Medicare (even just Part A) while still working with credible coverage if you have an HDHP/HSA.
        • There is no late enrollment penalty for Medicare Part A. While there are late enrollment penalties for Parts B an D. There is a still working with credible employer health insurance exemption to those penalties.
        • There is an eight (8) month special enrollment period after you stop working and/or lose coverage. To enroll in Part B.
        *Note: When enrolling in Medicare after 65, either automatically by enrolling in Social Security or delaying Social Security and directly enrolling in Medicare. You will be automatically retroactively* enrolled in Medicare Part A for up to six (6) months, but not before age 65.

        This retroactive Medicare enrollment will make you retroactively HSA ineligible. If you fail to stop HSA contributions during this period you will have excess HSA contributions. They will have to be removed with taxable earnings.

        This retroactive six (6) month Medicare enrollment was intended as a benefit for later enrollees. Unfortunately, there is no way to avoid this if you have an HDHP/HSA.
        Last edited by spiritrider; 03-28-2022, 10:58 AM.

        Comment


        • #5
          Thanks for your responses. We have less than 20 in our medical group corporation. Last responder says not to enroll in part A as I would become HSA ineligible retroactively which is what I am thinking as well. I don't plan to take social security benefits until age 70. Will Medicare not automatically enroll me in part A then? Thanks for your patience on this as I find it confusing.

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          • #6
            Unfortunately, if your employer's group health plan has < 20 employees. The employer can require you to enroll in Medicare at age 65 if still working.

            Medicare will be primary and their group health plan will be secondary. This allows the employer to pay far less for insurance premiums. However, you will be HSA ineligible.

            Your employer does not have to do this if they are generous, but most employers take advantage of this opportunity to reduce there insurance policy costs.

            Bottom Line: You need to determine what your employer requires at age 65.

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            • #7
              Originally posted by BIFF View Post
              Thanks for your responses. We have less than 20 in our medical group corporation. Last responder says not to enroll in part A as I would become HSA ineligible retroactively which is what I am thinking as well. I don't plan to take social security benefits until age 70. Will Medicare not automatically enroll me in part A then? Thanks for your patience on this as I find it confusing.
              Spiritrider is kind of like a Supreme Court justice or the Wizard of several subjects.
              Follow his advice. Just saying. On your first post you hit the jackpot.

              Comment


              • #8
                Our single specialty group corporation is our employer and will not require me to enroll in Medicare. Thanks for any further insight on this.

                Comment


                • #9
                  https://www.ssa.gov/help/iClaim_medSEP.html

                  Special Enrollment Period is key.
                  I had part A and part B two years later. Covered under wife’s plan. Did not have HSA.

                  Comment


                  • #10
                    Originally posted by BIFF View Post
                    I don't plan to take social security benefits until age 70. Will Medicare not automatically enroll me in part A then? Thanks for your patience on this as I find it confusing.
                    I missed responding to this.

                    If you have not already enrolled in Medicare when you apply for SS benefits at age 70. You will be automatically and six (6) months
                    retroactively enrolled in Medicare. Making you HSA ineligible at 69 1/2.

                    Comment


                    • #11
                      Will continue to research this and share any further insights I discover. Thanks again.

                      Comment


                      • #12
                        “This retroactive six (6) month Medicare enrollment was intended as a benefit for later enrollees. Unfortunately, there is no way to avoid this if you have an HDHP/HSA.”
                        The value of HDHP/HSA accounts are much less at the age of 65.
                        • Beneficiary (not a spouse) transfer: The HSA ends on the date of the individual’s death. The funds are then distributed and taxed as income to the beneficiary at fair market value. However, the beneficiary can use the HSA funds to pay for medical expenses of the account holder for up to 12-months after their death.2
                        • Estate or no beneficiary designated transfer: The HSA will be distributed to the estate and taxed as income on their final income tax return. ”

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                        • #13
                          The account would remain valuable. The last 6 months of contributions may not be that important.

                          Someone xould retire and use the HSA funds to pay for medical expenses or Medicare until the account was empty. All with never paying taxes on it.
                          The only problem is that the last six months of employer contributions would lose the favorable tax treatment.

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