Retiring at 67 with Medicare

The short version

3 months before you retire

• Get written confirmation that your medical and drug coverage have been creditable
• Get the CMS-L564 form signed by HR (proof of group health coverage)
• Decide between Original Medicare + Medigap or a Medicare Advantage plan
• If you have an HSA, stop contributions 6 months before Part A starts to avoid excess-contribution penalties

More on working past 65

The retirement month

• Enroll in Part B online at ssa.gov or in person at a Social Security office
• Submit the CMS-L564 form to prove SEP eligibility
• Choose the Part B effective date that coordinates with your group plan ending
• Enroll in Part D (or a MAPD) within 63 days of losing creditable drug coverage
• If choosing Medigap, apply during your initial Medigap Open Enrollment if you didn't take Part B at 65

The Medigap window question

COBRA: the most expensive trap

COBRA looks like a smooth bridge. It isn't, for Medicare. The Part B SEP clock started when your active employment ended, not when COBRA ends. If you spent 18 months on COBRA assuming you'd enroll later, you may have already used up your SEP and now owe a Part B late penalty for the rest of your life.

If you're already on COBRA, enroll in Part B during the 8-month SEP that started with the loss of active coverage, regardless of COBRA status. You can keep COBRA's drug coverage if it's creditable, but Part B should go on Medicare.

Coordinating with Social Security

If you start Social Security at retirement and you're 65 or older, SSA enrolls you automatically in Part A and B unless you opt out of Part B. If you delay Social Security, you have to enroll in Medicare yourself.

Note: any Social Security enrollment that backdates Part A more than 6 months can create an HSA excess-contribution problem. If you contributed to an HSA in those months, work with your HSA administrator on a withdrawal of excess contributions.

Frequently asked questions

If I'm 67 and retiring, am I in my IEP?

No. Your Initial Enrollment Period closed when you turned 65 plus 3 months. If you've been on creditable employer coverage since then, you're in a Special Enrollment Period that lasts 8 months after your active coverage ends.

Should I take Part B the day I retire?

Almost always yes. Active employer coverage ends, the 8-month SEP starts, and Part B doesn't backdate. Coordinate Part B's effective date so there's no gap between your group plan ending and Medicare beginning.

What about COBRA?

COBRA is not active employer coverage for Medicare purposes. It doesn't extend or delay your Part B enrollment window. The 8-month SEP starts when your active employment or active coverage ends, whichever comes first, not when COBRA ends.

Can I delay Part D too?

Only if your employer drug coverage was creditable. You get 63 days from the loss of creditable drug coverage to enroll in Part D without a late penalty. Get a creditable-coverage letter from your employer before you assume.

Do I need to do anything for Part A if I'm already on Social Security?

No. If you started taking Social Security before retiring (some people do), you're already enrolled in premium-free Part A. Confirm the Part B status — it's the one that needs your active decision when you retire after 65.