Do I need Part B if I'm still working?

The basic rule

Part B has a monthly premium ($202.90 in 2026 for most people), so if you have good coverage from a current job, you may not want to pay for both. Medicare lets you delay Part B without a penalty if you, or your spouse, are still working and you are covered by that employer's group health plan. When the job or the coverage ends, whichever comes first, you have an eight-month special enrollment period to sign up for Part B. Many people still take Part A at 65 because it usually has no premium, unless they contribute to an HSA.

Why employer size matters

• 20 or more employees: your group plan pays first and Medicare pays second. You can usually delay Part B.
• Fewer than 20 employees: Medicare generally pays first, and the employer plan pays second, if at all. Many small-employer plans expect you to have Part B at 65. If you don't sign up, you could be left with large bills the employer plan won't pay. Ask the plan in writing. See small employers and Medicare in Washington.
• Disability: if you have Medicare because of a disability, the threshold is 100 or more employees for the employer plan to pay first.

Washington situations

• State, higher education and school employees. PEBB and SEBB employee coverage from current work lets you delay Part B. Retiree coverage is different: PEBB requires retirees and enrolled dependents to enroll in Part A and Part B when eligible. See do PEBB retirees need Medicare Part B?
• Federal employees in Washington. FEHB coverage while you are working counts as current-employment coverage. See FEHB and Medicare.
• Self-employed or between jobs. Individual coverage through Washington Healthplanfinder, COBRA, and retiree coverage don't count. Sign up for Part B during your Initial Enrollment Period to avoid the penalty.
• Drug coverage. To delay Part D without a penalty, your employer drug coverage must be creditable. Your plan sends a yearly notice saying whether it is.

How to sign up later

1. Sign up the month before your employer coverage ends so Part B starts with no gap.
2. Fill out Form CMS-40B (Application for Enrollment in Medicare Part B) and have your employer complete Form CMS-L564 (Request for Employment Information), or apply online with Social Security and upload proof of coverage.
3. When Part B starts, you have a six-month Medigap open enrollment period and a two-month window to join a Medicare Advantage or Part D plan.

Use the late penalty calculator to see what a missed deadline would cost, and read working past 65. A licensed insurance agent with Benefits Life can compare your employer plan with Medicare options, at no cost to you: (206) SENIORS (206-736-4677), TTY 711.

Related questions

Sources

• Medicare.gov — When can I sign up for Medicare? (special enrollment period)
• Medicare.gov — Who pays first? (employer size)
• Social Security — Sign up for Part B only (Forms CMS-40B and CMS-L564)
• WAC 182-12-171 — PEBB retiree coverage (Medicare Parts A and B requirement)
• HealthCare.gov — Medicare and the Marketplace
• IRS — Publication 969, Health Savings Accounts

Frequently asked questions

I work for the State of Washington or a school district. Can I delay Part B?

Yes, while you have PEBB or SEBB employee coverage from current work. It counts as group coverage based on current employment. When you retire, PEBB retiree coverage requires you to enroll in Part A and Part B, so sign up before your employee coverage ends.

Does COBRA or retiree coverage let me delay Part B?

No. Neither COBRA nor retiree coverage is coverage from current work. Your eight-month special enrollment period starts when the job or the employer coverage ends, whichever comes first, not when COBRA ends.

I have a plan from Washington Healthplanfinder. Can I keep it instead of Part B?

It isn't coverage from current work, so it doesn't protect you from the Part B late penalty. Once you're eligible for Part A with no premium, you also can't get premium tax credits for a Marketplace plan. Plan to switch to Medicare during your Initial Enrollment Period.

I contribute to an HSA at work. What should I do?

You can't contribute to a health savings account once any part of Medicare starts. If you sign up after 65, Part A can start up to six months back, so stop HSA contributions six months before you sign up to avoid a tax penalty.

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