Retirement is the light at the end of the tunnel many hard-working seniors look forward to. Although retirement is your new freedom, there are still some things you need to check off of your checklist, such as enrolling in Medicare. Medicare is health insurance provided by the federal government for those aged 65 years and older and others who have received Social Security disability benefits for 24 months. Many seniors get overwhelmed by Medicare and retirement planning. If you retire this year, here is how to navigate your Medicare enrollment in 2022.

How to be auto-enrolled in Medicare

Many Medicare beneficiaries expect to be automatically enrolled in Medicare once they turn 65 years old, but this is not true for all. Here are the two scenarios where you are auto-enrolled:

• You have received Social Security disability benefits for 24 months
• You have received Social Security benefits at least four months before your 65th birthday month

If neither of these scenarios applies to you, you will need to enroll in Medicare during your Initial Enrollment Period.

Enrolling in Medicare before you retire

If you plan on enrolling in Medicare before you retire, you must apply during your Initial Enrollment Period (IEP). Your IEP is seven months long and based around your 65th birthday month. You can apply for Medicare three months before and three months after your 65th birthday month.

For example, if you turn 65 on October 10th, your IEP begins on July 1st and ends on January 31st. However, if your birthday is on the first of the month, your IEP will start one month earlier.

You will apply for Medicare Part A and Part B through the Social Security office during this time. You can apply either in person, online or over the phone. When you apply for Medicare during the first three months of your IEP, Medicare will start on the first of your birthday month.

Let’s say you don’t enroll in Medicare during your IEP, and you aren’t covered by creditable insurance. If this were to happen, you would be charged with a lifelong late enrollment penalty once you enroll in Medicare.

Now, if you or your spouse don’t plan on retiring anytime soon, you might be able to delay your Medicare enrollment.

How can you delay Medicare?

Those actively working for a large employer with 20 or more employees can delay enrolling in all parts of Medicare if their employer’s group health plan covers them. You can also delay your Medicare enrollment if you are on your spouse’s large-employer insurance, as well.

Now, let’s say you are covered by large group health insurance, but decide to enroll in Medicare. In this case, the employer coverage is the primary insurance, and Medicare pays as secondary. However, you would not want to apply for any part of Medicare if you contribute to a health savings account (HSA), or you may be penalized by the IRS.

You will need to enroll in Medicare during your IEP if the employer has less than 20 employees since the group plan is not considered creditable for Medicare. If you enroll in Medicare and decide to stay on your employer’s health plan, Medicare would be primary, and the employer insurance is secondary. If you don’t enroll in Medicare during your IEP, you will be charged with a lifelong late enrollment penalty.

Applying for Medicare after you retire

If you delay your Medicare enrollment due to being covered by creditable insurance, you will be given a Special Enrollment Period (SEP) to apply for Medicare without a late enrollment penalty. Beginning on the day you retire or lose active insurance (whichever comes first), you will have an 8-month SEP to apply for Medicare Part A and Part B and a 2-month SEP to apply for Medicare Part D (drug coverage).

The two forms you will need to submit to the Social Security office when you apply for Medicare are CMS forms L564 and 40B. Before you retire or lose active coverage, you will need your employer to fill out the CMS-L564 form, which proves you were covered by creditable coverage while delaying Medicare. You will complete the CMS-40B form yourself, as it is the Part B application.

Final point

Understanding when and where you need to apply for Medicare is a great start to understanding your Medicare enrollment. Medicare can be overwhelming when you navigate the maze solo, which is why working with an experienced Medicare broker can be beneficial.