Category: Medicare

Here is my situation:
> I will be retiring, at age 68, at the end of this month (if it matters, I turn 69 in early November)
> I receive my health insurance through my wife's employment, which is a large company (i.e., larger than 20 employees). My wife is 67 and plans to retire next March
> Last year I filed and suspended, and my wife took her spousal benefit (the MMSS software was extremely helpful, so thank you)
> I applied for Part A when I first became eligible

Based on my reading of "Medicare & You 2016", I think (emphasis on the word think) that so long as my wife is employed and continues to have health insurance for both of us through her employer, I do not need to sign up for Part B in order to avoid the penalty and, further, that both she and I will have 8 months from when she retires to sign up for Part B.

My question, of course, is whether my reading of the Medicare publication is correct or not? (As an editorial comment, I have to add that I am well educated -- ABD in economics -- and reasonably intelligent, but yet everytime I read anything from the Social Security or Medicare agencies, I am never entirely sure I understand what I have read. This is scary and unbelievable, as often retirees are making irrevocable decisions. End of rant.)

Thanks for your help.

Best regards,

David

Hi David,

Yes, as long as you're covered under your wife's employer's plan and she is an active employee, you can defer signing up for Part B of Medicare with no penalty. You will have 8 months from the time she retires to sign up for Part B coverage with no penalty, however, if you file after the first month that your wife is no longer covered as an active employee, your coverage can't begin until the month after you apply. To avoid a gap in coverage, you'll need to apply for Part B no later than the month immediately following the month in which your wife retires and her coverage as an active employee ends.

So, if your wife is retiring in March 2017 and her coverage as an active employee ends 3/31/2017, you'll want to apply for Part B coverage no later than April 2017 to avoid a gap in coverage. Presumably, your wife will want to do the same. You can start the application process as early as January 2017, which should help make the transition smoother.

Best, Jerry