90 Days From Retirement

Here is Monday Medicare Myth #2:
"If I have health insurance at 65, I don't need to get Medicare and I won't be penalized."

Not so fast.

How you get your health insurance matters in this decision.

If you or your spouse are getting health insurance in any one of these four ways, you could potentially see a penalty for NOT taking Medicare during your Initial Enrollment Period that lasts 3 months before your 65th birthday month, includes your 65th birthday month, and extends 3 months after your 65th birthday month.

1. No Health Insurance.
This is kind of weird given the context of this myth, but needs to be mentioned.

2. An Individual Plan through the ACA Marketplace.

3. A retiree health plan.

4. COBRA.

If you are covered by any of those, or, if your spouse is covered by any of those and does not take Medicare when they are initially eligible (65), they could see a Part B penalty.

Notice what's missing?
It was Myth #1 from last week.

If you are covered by a group insurance plan, you can delay Medicare for as long as you are covered by a group plan, and then enroll in Medicare during a Special Enrollment Period with no penalty.

Things get a bit weird for groups of 19 or less, but it's not a life-long penalty, and that'll be covered in another edition of Monday Medicare Myths.

Follow for more Medicare Myths.