Medicare 2026

Still on the Job at 65? Your 8-Month Medicare Window

Still on the Job at 65? Your 8-Month Medicare Window — plain-language Medicare information for League City, Texas.

LEAGUE CITY, Texas — Turning 65 while still clocking in at work? You are far from alone, and the good news is you probably do not have to make a rushed decision about Medicare. But there is one deadline that trips people up: an 8-month window that starts the moment your job or job-based health coverage ends. Miss it, and you could face lifelong penalties.

Here is how Medicare fits with employer coverage when you are still working, and what League City residents should know before making the call.

Part A is usually a yes at 65

If you have worked and paid Medicare taxes for at least 10 years, Part A (hospital insurance) is premium-free. Most people sign up at 65 even if they are still working, because it does not cost anything and can serve as backup coverage.

The one big exception: if you contribute to a Health Savings Account (HSA), you must stop HSA contributions once you enroll in any part of Medicare, including Part A. If your HSA is important to you, talk with your benefits administrator before signing up.

Part B is where timing matters

Part B (doctor and outpatient care) has a monthly premium, and this is where the decision gets real. Whether you should enroll depends on the size of your employer:

• 20 or more employees: Your job-based plan usually pays first, and Medicare pays second. Many workers safely delay Part B without penalty.
• Fewer than 20 employees: Medicare typically pays first. If you do not enroll in Part B at 65, you may have gaps in coverage.

Ask your HR department in writing which rule applies to your plan. Do not guess.

The 8-month Special Enrollment Period

When you or your spouse stop working, or when the employer coverage ends — whichever comes first — you get an 8-month Special Enrollment Period (SEP) to sign up for Part B without a late penalty. COBRA and retiree coverage do not count as active employer coverage for this rule, so the clock starts when the job ends, not when COBRA ends.

Miss the window, and the Part B late enrollment penalty can add 10% to your premium for every 12 months you could have had it — for the rest of your life.

What about Part D and Medicare Advantage?

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

League City is in Galveston County, where a range of Medicare Advantage and stand-alone Part D plans are available once you become eligible. When you are ready to compare options, the plan finder at Medicare.gov lets you sort by ZIP code.

The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027, and the maximum Part D deductible is $615 in 2026 and $700 in 2027. The old coverage gap ("donut hole") is gone as of 2025.

Steps to take before you retire

1. Ask HR whether your employer coverage is primary or secondary to Medicare. 2. Get a creditable coverage letter for your drug plan. 3. Decide whether to keep contributing to an HSA (which means delaying Part A). 4. Mark the date your job coverage ends — your 8-month SEP starts then. 5. Enroll in Part B through Social Security when the time comes.