Medicare 2026

Still Working at 65 in Deerfield Beach? How Medicare Fits In

DEERFIELD BEACH, Fla. — Plenty of people here are still clocking in at 65, whether it's out of choice, love of the work, or just wanting to keep the paycheck coming. If that's you, the big question isn't whether to retire — it's how Medicare fits in with the health plan you already have at work.

Turning 65 while still on the job? Take a breath first

The good news: you don't have to guess. Medicare has clear rules about how it coordinates with employer coverage. The tricky part is that the rules depend on the size of your employer — and missing a deadline can cost you for the rest of your life in the form of permanent late-enrollment penalties.

Here's a plain-language walk-through so you can make the call that fits your situation.

Part A is usually the easy one

Most people qualify for premium-free Part A (hospital insurance) at 65 because they or a spouse paid Medicare taxes for at least 10 years. Since it doesn't cost anything, many workers sign up for Part A at 65 even if they keep their job-based plan.

One important exception: if you contribute to a Health Savings Account (HSA), you have to stop HSA contributions once you enroll in any part of Medicare, including Part A. If your HSA is a big part of your benefits strategy, talk to your HR department before you file.

The real question: is your employer big or small?

This is where a lot of people trip up. Whether Medicare or your employer plan pays first depends on how many employees your company has.

• 20 or more employees: Your group health plan generally pays first, and Medicare pays second. You can usually delay Part B (medical insurance) without a penalty while you're actively working and covered.
• Fewer than 20 employees: Medicare typically pays first, and your employer plan pays second. If you don't enroll in Part B at 65, your employer plan may only cover the small share Medicare would have left behind — leaving you with big bills.

If you work for a small employer, delaying Part B is almost always a mistake. Ask your HR team, in writing, how the plan coordinates with Medicare before you decide.

Deerfield Beach is in Broward County, where retirees have a wide range of Medicare Advantage and Part D options once they're ready to leave employer coverage — but none of that matters until you get the timing on Parts A and B right.

The Special Enrollment Period is your safety net

When you finally do leave your job (or your employer coverage ends), you get an 8-month Special Enrollment Period to sign up for Part B without a late penalty. That clock starts the month after your employment or your group coverage ends — whichever comes first.

A couple of common misconceptions worth clearing up:

• COBRA does not count as active employer coverage for Medicare purposes. If you go on COBRA at 65 and wait to enroll in Part B, you can still get hit with a permanent late-enrollment penalty.
• Retiree health coverage doesn't count either. Same trap.

If either applies to you, don't wait — enroll in Part B during your Initial Enrollment Period (the 7-month window around your 65th birthday).

Don't forget about Part D

If your employer plan includes prescription drug coverage that Medicare considers "creditable" (as good as or better than standard Part D), you can delay Part D without penalty. Your plan is required to send you a Notice of Creditable Coverage each year — keep it. You'll need it when you eventually enroll.

For 2026, Part D has some meaningful updates worth knowing about even if you don't need a plan yet:

• The out-of-pocket cap for covered drugs is $2,100.
• The maximum Part D deductible is $615.
• The old "donut hole" is gone — coverage now moves through three simpler phases.
• The Medicare Prescription Payment Plan lets you spread your drug costs across the year in monthly amounts instead of paying big bills at the pharmacy counter.

Also worth flagging: IRMAA surcharges, which are extra amounts higher-income enrollees pay for Part B and Part D, kick in above $109,000 in income for a single filer in 2026 (based on your 2024 tax return). If you're still working and earning well, this could affect your Medicare costs once you enroll.

When you're ready to fully transition

Once you retire and your employer coverage ends, you'll have decisions to make about Original Medicare, Medigap, Medicare Advantage, and Part D. In Broward County, there are a wide range of Medicare Advantage and stand-alone drug plans to compare — availability is set at the county level, so what's offered here is different from what a friend in another part of the country sees.

Two key dates to bookmark:

• Annual Enrollment Period: October 15 – December 7 (for coverage starting January 1).
• Medicare Advantage Open Enrollment: January 1 – March 31 (for people already in a Medicare Advantage plan who want to switch or drop back to Original Medicare).