I'm guessing the question refers to Medicare. And YES you must sign up or you will be charged an annual penalty for the rest of your life. Medicare dot gov has all the info you need.
Not only is there a penalty for delaying, but if you check your wife's health plan you may discover that once you become eligible for Medicare, that plan becomes a secondary payer and Medicare becomes primary. That means that the plan will only cover expenses that Medicare doesn't cover. I had my (ex) husband covered under my plan at work and that was what happened when he turned 65. It's a pretty common feature - employer plans don't want to pay for someone who is eligible for care paid by the government.
Ricknadeau, I agree with geewiz, there will be a penalty if you don't sign up at 65.
Decades ago my Mom waited until Dad was 65 [she was 4 years older] to sign for Medicare because she was getting excellent insurance through Dad's company. What a shock when she found out about that penalty. Thus she had to deal with that penalty for the next 30 years.
CarlacBs post is really REALLY important to understand. For us, hubs almost 70 has a great employer health insurance that I’m on & our son is on. Hubs signed up for Original Medicare at 65 but suspended both Part A & B. All health paid by his insurance - United - with whatever copay. But starting in 2018, if there is a Part A hospitalization (not day surgery or in hospital observation) for him, the hospitalization will be Medicare primary with United Secondary. His co. is doing this for any employees or their dependents who are Medicare eligible. United is still the primary for all things that would be considered part B coverage as the premiums are taken out for that from his salary. Like Carla said it’s a common feature. But not all employers do a decent job of getting the info out on what it means.
You must sign up for Medicare within your 7 month window: 3 months before, the month of, or 3 months after your 65th birthday. It does not matter whether or not you are receiving Social Security. If you do not signup during this 7 month period you will have penalty pricing once you do. Once you sign up you can delay using those benefits. There are many seniors who signed up for Affordable Care Medical Programs (Obamacare) or have other medical health insurance who think that they do not have to sign up bor Medicare BUT you have to sign up for Medicare regardless. Note for others who may have missed this: there is currently a reprieve for those that ended up in penalty pricing. If you contact Medicare they will waive the penalty and return you to regular pricing. If you are confused see if there is a HICAP (Health Insurance Counselling and Advocacy Program) counselor in your area. There is no charge and they are not brokers so they will not steer you into a policy that may not be the best for you.
The answer is yes, you can. However, when you do retire and then sign up for Medicare, you will have to obtain a letter from your employer, stating that you had health coverage with them so that you don't incur a penalty with Medicare.
Rather than rely on we the people, as I suggested before CALL your local SS office to BE ABSOLUTELY SURE!
I don't know what this "Medicare for Dummies" is OR if the rules are changing in 2018, but the same info about the number of employees (I did not compare word-for-word, but it appears that whether the insurance is under your name or your spouse, the same information seems to be provided - this person asked about spouse insurance, but ANYONE else can check this page or talk to your local SS office) is on the MEDICARE.GOV page and it discusses the differences between insurance needs for companies with more or less than 20 employees. The section on spousal insurance is copy/pasted HERE:
"I have coverage through my spouse who is currently working. The size of the employer determines whether you may be able to delay Part A and Part B without having to pay a penalty if you enroll later.
The employer has fewer than 20 employees.
You should sign up for Part A and Part B when you're first eligible. In this case, Medicare pays before your other coverage. Learn more about how to get Parts A and B.
Note If you don’t enroll when you’re first eligible, you may have to pay a Part B late enrollment penalty, and you may have a gap in coverage if you decide you want Part B later.
The employer has 20 or more employees.
Ask the benefits manager whether you have group health plan coverage (as defined by the IRS). People with group health coverage based on current employment may be able to delay Part A and Part B and won’t have to pay a lifetime late enrollment penalty if they enroll later.
How you delay your coverage depends on your situation:
If you’ll be getting benefits from Social Security or the Railroad Retirement Board (RRB) at least 4 months before you turn 65, you’ll automatically get Part A and Part B. You'll get your red, white, and blue Medicare card in the mail 3 months before your 65th birthday. If you don't want Part B, follow the instructions that came with the card. If you keep the card, you keep Part B and will pay Part B premiums. If you won’t be getting benefits from Social Security or the Railroad Retirement Board (RRB) at least 4 months before you turn 65, you don’t need to do anything when you turn 65. If you’re eligible for premium-free Part A, you can enroll in Part A at any time after you’re first eligible for Medicare. Your Part A coverage will go back (retroactively) 6 months from when you sign up (but no earlier than the first month you are eligible for Medicare). If you aren't eligible for premium-free Part A, and you don't buy it when you're first eligible, you may have to pay a penalty."
I do not recall where I read it, but there was discussion about whether the less than 20 employee coverage is considered a "group" policy. There is ALSO discussion around Part D (drug coverage) that can be CRUCIAL to this decision and Medigap availability (From a PBS post: "Medicare Beneficiaries have an Open Enrollment Period that begins when they enroll in part B and lasts for six months. During this period, they can purchase any Medigap policy available in their state. And they cannot be denied or charged more because of a pre-existing condition or health history. This guaranteed access to Medigap is, however, a one-time deal.")
AGAIN, I would highly recommend you make an appointment with SS and discuss ALL your options, face to face. Bring a list of all these issues so that you have correct information before you make this important decision. This is NOT a simple decision between one insurance or another and a wrong decision could affect you negatively for a very long time!!!
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Decades ago my Mom waited until Dad was 65 [she was 4 years older] to sign for Medicare because she was getting excellent insurance through Dad's company. What a shock when she found out about that penalty. Thus she had to deal with that penalty for the next 30 years.
For us, hubs almost 70 has a great employer health insurance that I’m on & our son is on. Hubs signed up for Original Medicare at 65 but suspended both Part A & B. All health paid by his insurance - United - with whatever copay. But starting in 2018, if there is a Part A hospitalization (not day surgery or in hospital observation) for him, the hospitalization will be Medicare primary with United Secondary. His co. is doing this for any employees or their dependents who are Medicare eligible. United is still the primary for all things that would be considered part B coverage as the premiums are taken out for that from his salary.
Like Carla said it’s a common feature. But not all employers do a decent job of getting the info out on what it means.
I don't know what this "Medicare for Dummies" is OR if the rules are changing in 2018, but the same info about the number of employees (I did not compare word-for-word, but it appears that whether the insurance is under your name or your spouse, the same information seems to be provided - this person asked about spouse insurance, but ANYONE else can check this page or talk to your local SS office) is on the MEDICARE.GOV page and it discusses the differences between insurance needs for companies with more or less than 20 employees. The section on spousal insurance is copy/pasted HERE:
medicare.gov/sign-up-change-plans/get-parts-a-and-b/should-you-get-part-b/should-i-get-part-b.html#collapse-5783
"I have coverage through my spouse who is currently working.
The size of the employer determines whether you may be able to delay Part A and Part B without having to pay a penalty if you enroll later.
The employer has fewer than 20 employees.
You should sign up for Part A and Part B when you're first eligible. In this case, Medicare pays before your other coverage. Learn more about how to get Parts A and B.
Note
If you don’t enroll when you’re first eligible, you may have to pay a Part B late enrollment penalty, and you may have a gap in coverage if you decide you want Part B later.
The employer has 20 or more employees.
Ask the benefits manager whether you have group health plan coverage (as defined by the IRS). People with group health coverage based on current employment may be able to delay Part A and Part B and won’t have to pay a lifetime late enrollment penalty if they enroll later.
How you delay your coverage depends on your situation:
If you’ll be getting benefits from Social Security or the Railroad Retirement Board (RRB) at least 4 months before you turn 65, you’ll automatically get Part A and Part B. You'll get your red, white, and blue Medicare card in the mail 3 months before your 65th birthday. If you don't want Part B, follow the instructions that came with the card. If you keep the card, you keep Part B and will pay Part B premiums.
If you won’t be getting benefits from Social Security or the Railroad Retirement Board (RRB) at least 4 months before you turn 65, you don’t need to do anything when you turn 65.
If you’re eligible for premium-free Part A, you can enroll in Part A at any time after you’re first eligible for Medicare. Your Part A coverage will go back (retroactively) 6 months from when you sign up (but no earlier than the first month you are eligible for Medicare). If you aren't eligible for premium-free Part A, and you don't buy it when you're first eligible, you may have to pay a penalty."
I do not recall where I read it, but there was discussion about whether the less than 20 employee coverage is considered a "group" policy. There is ALSO discussion around Part D (drug coverage) that can be CRUCIAL to this decision and Medigap availability (From a PBS post: "Medicare Beneficiaries have an Open Enrollment Period that begins when they enroll in part B and lasts for six months. During this period, they can purchase any Medigap policy available in their state. And they cannot be denied or charged more because of a pre-existing condition or health history. This guaranteed access to Medigap is, however, a one-time deal.")
AGAIN, I would highly recommend you make an appointment with SS and discuss ALL your options, face to face. Bring a list of all these issues so that you have correct information before you make this important decision. This is NOT a simple decision between one insurance or another and a wrong decision could affect you negatively for a very long time!!!
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