Note: The Exchange health insurance plan requires signing up for Medicare Parts A and B. Part A should be at no cost, but the retiree is responsible for Part B premiums. Certain exceptions may apply such as continuing to work for the Exchange after age 65. COBRA and retiree health plans do not count as active coverage. If receiving social security benefits prior to age 65, enrollment in Parts A and B should be automatic. International Plan retirees should review the information found at https://aafesretired.org/benefits/aetna/medical/international/.
Speaking with the local Social Security office and Benefits Support is recommended to discuss your particular situation if continuing to work after age 65 and maintaining employer sponsored health coverage is important, for example you want to maintain Exchange health coverage into retirement. There are certain requirements that must be met to delay Part B coverage AND to start Part B coverage when employer sponsored health coverage ends, EN-05-10012- How to Apply for Medicare Part B During Your Special Enrollment Period, to avoid Part B penalties.
For full information, review Original Medicare (Part A and B) Eligibility and Enrollment | CMS and Enrolling in Medicare Part A & Part B.
The Initial Enrollment Period (IEP) is a 7-month period that begins 3 months before the month a person turns 65, their birthday month and ends 3 months after the person turns 65. For someone under age 65 who becomes entitled to Medicare based on disability, entitlement begins with the 25th month of disability benefit entitlement. For these individuals, the IEP begins 3 months before the 25th month of disability benefit entitlement, includes the 25th month, and ends three months after. The IEP for people with ESRD and ALS varies based on their situation.
Coverage will begin the month after a person enrolls during their IEP. Disabled individuals are automatically enrolled in Medicare Part A and Part B after they have received disability benefits from Social Security for 24 months.
NOTE: In most cases, if someone does not enroll in Part B or premium Part A when first eligible, they will have to pay a late enrollment penalty. The Part B penalty is assessed for as long as the person has Part B.
Late Enrollment Penalty (LEP) for Part B. If an individual did not sign up for Part B when first eligible, the individual may have to pay a late enrollment penalty for as long as the individual has Medicare. The individual’s monthly premium for Part B may go up 10% for each full 12-month period that the individual could have had Part B but did not sign up for it.
What if I’m close to 65, but not getting Social Security or Railroad Retirement Board (RRB) benefits? If you aren’t getting Social Security or RRB benefits (for example, because you’re still working) and you want Part A or Part B, you’ll need to sign up (even if you’re eligible to get free Part A). If you’re not eligible for free Part A, you can buy Part A and Part B. Be sure to sign up for Part B during your Initial Enrollment Period so you don’t have to pay a lifetime late enrollment penalty if you sign up for it later. 18 Section 2—Signing up for Part A and Part B Important: If you’re not getting Social Security benefits, Medicare won’t mail you any enrollment information. You’ll need to call Social Security at 1-800-772-1213 at least 3 months before you turn 65 to avoid any penalties. TTY users should call 1-800-325-0778. If you worked for a railroad, contact the Railroad Retirement Board (RRB) to sign up. After you enroll, you’ll get your Medicare card.