Hassle-Free Health Coverage: Still Working?

If you decide to continue to work after the age of 65, you will still be covered by Medicare. However, such coverage will -- in most cases -- be secondary to other insurance.

Example: If a company has at least 20 employees, employees over 65 must be offered the same health benefits as younger employees. Medicare becomes a secondary payor of benefits for the employees over 65. The company's health plan is primary. Accordingly, any health claim made by an age 65 or older employee will first be paid by the group health insurance. If any part of the claim is not satisfied by the company's plan, that portion of the claim would then be submitted to Medicare.

An important note: You may reject your employer's plan and elect Medicare as the primary payor...but your employer may not -- in any way -- encourage you to make Medicare your primary coverage.

Common tactics employers use to encourage the decision subtly: offering to pay for Part B coverage on your behalf and offering to purchase a Medicare supplement policy for you.

Medicare also becomes the secondary insurer in cases where medical care is to be provided under the provisions of a liability policy, including an automobile policy.