Today, it’s not uncommon for people who leave the workforce around Medicare eligibility age (age 65) to return to work later on. Maybe it’s a passionate side-gig, a part-time job or full-time. In any case, when you go back to work, what does that mean for your Medicare coverage? Can you have employer coverage again when on Medicare? Yes, if you or spouse go back to work for an employer who offers health insurance, you can take it. You are allowed to have both Medicare and employer coverage, and you can use them together. One will act as primary coverage and the other as secondary coverage. The employer health insurance must be a credible health plan. The only thing to keep in mind is that when you have Medicare and an employer plan, you cannot contribute to a health savings account (HSA) if it’s offered. Can I drop Medicare if returning to work? If you’re going back to work and can get employer health coverage that is considered credible primary coverage, you are allowed to drop Medicare and re-enroll again without penalties. If you drop Medicare and don’t have credible employer coverage, you’ll face penalties when going back on Medicare. An employer health coverage is credible when the prescription drug coverage is expected to pay, on average, at least as much as Medicare drug coverage. Before you decide to drop any part of Medicare, there are some things you’ll want to think about, especially as some choices could end up being costly. · Pre-Existing Conditions: If you decide to drop Medicare Part B, you’ll also have to drop your Medicare Supplement plan (Medigap) if you have one. This could make it difficult to enroll in another later on as your pre-existing health conditions will be considered when applying. · Health Savings Accounts (HSAs): If you want to contribute you an HSA, you will have to drop Part A. You could end up having to repay the government for medical services Medicare covered as well as repaying any Social Security benefits. · Premium Payments: If you are currently paying premiums for Part A, you cannot disenroll from Part B without also disenrolling from Part A. Additionally, should you decide to disenroll from Medicare, you’ll need to talk with Social Security directly. You can do this either in-person or on the phone. Social Security requires that you consult with them while you fill out the Part B disenrollment form. Re-enrolling in Medicare when working after 65 Medicare has rules for re-enrolling after you’ve dropped it for an employer-sponsored health plan. You’ll have an 8-month Special Enrollment Period in which to re-enroll in Medicare Part A and Part B. If you miss this window, you’ll have to wait to enroll in the Medicare General Enrollment Period (January 1 – March 31) and you could face late enrollment penalties if you end up going too long without credible coverage. NOTE: While you have eight months for Parts A & B, you only get two months after losing the employer coverage or leaving work to re-enroll in a Medicare Part D prescription drug plan or a Medicare Advantage (Part C) plan. If you enroll later, you’ll face late enrollment penalties for Part D. Finally, if you wish to re-enroll in a Medicare Supplement (Medigap) plan, you’ll be able to do so any time after re-enrolling in Parts A & B. Learn more about the Special Enrollment Period for people working past 65 .  There are a lot of things to consider when it comes to Medicare and returning to work. Take your time thinking through your options. Any decision is right so long as it’s what’s best for your health and lifestyle. If you still have questions about you options, we would love to provide you with a no-cost consultation! Give us a call or easily request more information through our website.