Medigap Plans for People Working Past 65 and Retiring Later

Medigap is private insurance that may help pay some costs Original Medicare does not, such as certain coinsurance, copayments and deductibles. Plans are labeled by letter. Only Plans A, B, D, G, K, L, M and N (and high-deductible Plan G) are sold to people newly eligible for Medicare. Plans C and F (and high-deductible F) are available only to people who became eligible before January 1, 2020. Plans E, H, I and J were discontinued and are not sold today, so a search for Plan H will not lead to a plan you can buy.

Many people who keep working past 65 stay on an employer group health plan. Whether you need to sign up for Part B while still working can depend on the size of the employer and how the plan works with Medicare. Part A is often handled differently from Part B. Confirm your situation with your benefits office, Medicare.gov or your State Health Insurance Assistance Program (SHIP).

Medigap has a special open enrollment period that generally begins when you are both 65 or older and enrolled in Part B. During that window, carriers generally cannot use medical underwriting to decline you or charge more because of health. Rules vary by state, and Massachusetts, Minnesota and Wisconsin standardize Medigap differently. 1-800-MEDIGAP is an independent, privately run educational site. It is not Medicare.gov, CMS, Social Security or any government agency.

Many people who work past 65 keep their employer coverage and delay Part B until they retire or the coverage ends. Others enroll in Part B right away and use it alongside the employer plan. Each approach has been common, and the right fit depends on the employer plan, health needs and budget.

Those who delay often plan their Part B start and Medigap purchase around the date their employer coverage ends. They may ask the employer in writing about how the plan coordinates with Medicare. Some also look at whether the employer plan includes drug coverage and how it compares with a separate Part D plan.

Some people compare Medigap with Medicare Advantage before they retire. Medigap offers the freedom to see any provider nationwide that accepts Medicare, no networks or referrals, and predictable cost-sharing. Trade-offs include generally higher monthly premiums, possible medical underwriting outside open enrollment or guaranteed issue, a separate Part D plan for drugs, and no routine dental, vision or hearing. Medicare Advantage often has lower premiums, an annual out-of-pocket maximum, extra benefits and drug coverage in many plans, but it can come with networks, prior authorization and copays. Neither is right for everyone.

A Medigap agent may help you map out a timeline before you retire. A visit is generally a conversation about when your employer coverage ends, when Part B could start, and when your Medigap open enrollment window may begin. An agent may also explain how your state's rules apply.

Helpful questions to ask include: Which Medigap plan letters are available to me? Does my state have special rules or extra enrollment chances? How would a Part D plan fit with my medications? What happens if I wait, and what might I miss? Bring your employer plan details and a list of your doctors and prescriptions.

Independent licensed agents may be able to compare plans from several carriers, which may save you time. They cannot promise acceptance, savings or that a plan is the best one. Call 1-800-MEDIGAP for more information.