By Gary Smith

The Medicare maze is very confusing especially if you plan to work past age 65. If this applies to you, listen up. If you work past age 65, and want to delay your Medicare, you must meet the following

TWO-part rule. This rule also applies to your spouse.

Part One: Working Full time; AND

Part Two: Covered by a Group Health Plan through your current full-time employer.

Let’s assume you are still working full time with Group Health Coverage. What else should you consider in making your decision?

First: The Part B income penalty. If you make over $85,000 as an individual filer or over $170,000 as a joint filer, you will have to pay a penalty. So, why take Medicare Part B and pay the income penalty?

Second: Your Group Deductible and how much you actually pay for your Group Coverage. For example, if your group deductible is $500.00 and the company pays 100% of the cost, why would you pay $1600.00 per year for Medicare to cover a $500.00 deductible. Why not just save the $1600.00?

Third: What about your Spouse? If you are turning 65 but your spouse is 62, most companies are not going to let you keep your spouse on the group health plan if you’re not on the plan. Note: Individual Health plans for someone 60 plus start at $800.00/month with a $7500 deductible. So, you need to keep working and delay your Medicare until your spouse is 18 months out from her 65th birthday. This way she can take COBRA.

Remember at Gary Smith Agency, “We Put the CARE in Medicare” so, we welcome your calls and questions. Call 833-777-GARY (4279)