If my client is enrolled in employer-sponsored insurance, will they be penalized for not enrolling in Medicare Part A and/or B at age 65 if they choose to continue working?

If an individual is working past the age of 65, they can elect not to enroll in Medicare without incurring a penalty as long as their employer-sponsored insurance is considered minimum essential coverage. Once they retire and their employer insurance ends, they will have an eight-month Medicare Special Enrollment Period (SEP) in which to enroll in Medicare coverage with no penalties.

It is also possible for a person who is still working to defer Medicare Part B enrollment but sign up for premium-free Medicare Part A.