It depends on whether participants are still working when they turn 65. If participants are employed, they will need to check with their company to see how their group health insurance works with Medicare. Part A may help pay for some of the costs not covered by their group health plan. Part A at age 65 is usually premium-free. If participants are still working (at a company with more than 25 workers), have insurance, and turn 65, their company insurance is the primary payer for health bills and Medicare is the secondary payer. If their employer has fewer than 20 employees, Medicare pays first.
As for Part B, a person may wait to sign up for coverage if he or she (or the person's spouse) is still working and the person is covered by group health insurance. The person would have to pay the Part B monthly premium ($104.90 for most people in 2013), which may offer limited value if the person's group health insurance is the primary coverage. Enrollment in a Part D plan may also be delayed depending on how it works with the person's employee plan.
If people are not employed when they turn 65, they can be enrolled in both. Part A is premium-free for most people. If people wait to sign up for Part B until their 66th birthday, they could face a lifetime penalty and a delay in coverage.
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