Medicare 2026

Coordinating Medicare with Job Coverage in Arvada

ARVADA, Colo. — Turning 65 used to mean handing in your badge and picking up a Medicare card on the same day. Not anymore. More Coloradans are staying on the job past 65, and that raises a very practical question: if you already have health insurance through work, do you also need to sign up for Medicare?

The answer depends on the size of your employer, the kind of coverage you have, and the deadlines Medicare sets for you personally. Here's a plain-English guide to how the two systems fit together as you weigh 2027 coverage.

First, know which coverage pays first

When you have both Medicare and job-based insurance, one plan is the "primary payer" and the other is "secondary." Getting this right matters, because it decides which plan pays the bill first and which picks up the leftovers.

The rule of thumb from Medicare:

• Employer has 20 or more employees: Your group health plan usually pays first, and Medicare pays second.
• Employer has fewer than 20 employees: Medicare usually pays first, and your group plan pays second.

That second scenario is the one that trips people up. If you work for a small business in Arvada and skip Medicare at 65, you could end up with almost no coverage — because your employer plan expects Medicare to be paying the bulk of your care.

If you're not sure how your plan is set up, ask your HR or benefits office in writing.

Part A is usually a no-brainer. Part B is the real decision.

Most people qualify for premium-free Part A (hospital insurance) based on their work history, so enrolling at 65 rarely costs anything. Many workers sign up for Part A even while keeping employer coverage.

Part B (doctor and outpatient care) has a monthly premium, and this is where the real coordination question lives. If your employer coverage is considered "creditable" and your company has 20+ employees, you can generally delay Part B without a late penalty and pick it up later through a Special Enrollment Period.

If your employer has fewer than 20 employees — or if you're on retiree coverage, COBRA, or a Marketplace plan — those do not protect you from the Part B late-enrollment penalty. That penalty can add 10% to your Part B premium for every full 12 months you were eligible and didn't sign up, and it lasts as long as you have Part B.

Watch the HSA trap

Here's a wrinkle a lot of workers miss: once you enroll in any part of Medicare, including Part A, you can no longer contribute to a Health Savings Account. You can still spend what's already in your HSA, but new contributions have to stop.

If you're deliberately maxing out an HSA in your final working years, talk to your benefits team before enrolling in Part A. You may need to time things carefully, especially since Part A enrollment can be backdated up to six months when you sign up later.

Part D and the drug cost cap

If your employer plan includes prescription drug coverage that Medicare considers "creditable," you can delay Part D without a penalty. Your plan should send you a notice each year confirming this — keep it.

If your job coverage does not include creditable drug coverage, you'll want to enroll in a Part D plan when you're first eligible to avoid a lifelong late penalty.

Some numbers worth knowing:

• Part D out-of-pocket cap: $2,100 for the year.
• Part D maximum deductible: $615.
• The old coverage gap (the "donut hole") is gone as of 2025.
• The Medicare Prescription Payment Plan lets you spread drug costs across the calendar year in monthly installments instead of paying at the pharmacy counter.

When you finally do leave the job

When your employment or employer coverage ends, you get an 8-month Special Enrollment Period to sign up for Part B without a penalty. COBRA does not extend that window — it's tied to when the job-based coverage actually ends, not when COBRA runs out. This is one of the most common (and expensive) mix-ups Medicare counselors see.

Arvada is in Jefferson County, where a range of stand-alone Part D plans and Medicare Advantage plans are offered each year. If you're planning to move from employer coverage into Original Medicare plus Part D, or into a Medicare Advantage plan, the Annual Enrollment Period runs October 15 through December 7, with the Medicare Advantage Open Enrollment Period following from January 1 through March 31.

A quick word on IRMAA

Higher earners pay more for Part B and Part D through a surcharge called IRMAA. For 2026, those surcharges start above $109,000 in income for a single filer (higher thresholds apply for joint filers). If you're still working and drawing a strong salary, factor this in before assuming Medicare will automatically be cheaper than your group plan.