Medicare Supplement

Still Working at 65 in Tuscaloosa? How to Time Medicare

TUSCALOOSA, Ala. — Turning 65 while you're still punching the clock can feel like a puzzle. Do you sign up for Medicare now? Wait until you retire? What if your spouse is on your job's health plan? The good news: the rules are clearer than they look, and a little planning can help you avoid a lifelong penalty.

Here's what to think about if you live in Tuscaloosa and you're weighing Medicare against the coverage you already have through work.

Start with the size of your employer

The single most important factor is how many people work at your (or your spouse's) company.

• 20 or more employees: Your job's health plan is usually the primary payer, and Medicare would be secondary. Many people in this situation delay Part B without penalty because they have "creditable" coverage through work.
• Fewer than 20 employees: Medicare is typically primary. That means if you don't sign up for Part B at 65, your employer plan may pay very little — leaving you with big bills. In small-employer situations, most people should enroll on time.

If you're not sure how your plan pays, ask your HR or benefits office in writing. They can tell you whether your coverage is considered creditable and whether it pays before or after Medicare.

Part A is usually an easy "yes"

Most people qualify for premium-free Part A (hospital insurance) because they or a spouse paid Medicare taxes for at least 10 years. If that's you, signing up for Part A at 65 is often a simple move — it can help cover hospital costs your job plan doesn't.

One 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 matters to you, talk to your benefits office before enrolling.

Part B: the piece that trips people up

Part B (doctor visits, outpatient care) has a monthly premium, so many working people want to delay it. That's fine — if your job coverage qualifies.

When you eventually leave your job or lose that coverage, you get an 8-month Special Enrollment Period to sign up for Part B without a late penalty. Miss that window, and you could face a permanent premium surcharge — 10% more for every 12 months you should have had Part B.

COBRA and retiree coverage do not count as active employer coverage for this purpose. Once you're on COBRA, the Medicare clock is already running.

Don't forget Part D (prescription drugs)

If your job's drug coverage is "creditable" (at least as good as standard Medicare drug coverage), you can delay Part D without a penalty. Your employer is required to send you a notice each year telling you whether your drug coverage is creditable — save that letter.

A few 2026 numbers worth knowing when you do enroll in Part D:

• The out-of-pocket cap for covered drugs is $2,100.
• The maximum deductible a Part D plan can charge is $615.
• The old "donut hole" coverage gap is gone as of 2025; there are now three simpler phases.
• The Medicare Prescription Payment Plan is an option that lets you spread your yearly drug costs into monthly payments instead of paying a big amount at the pharmacy counter.

Higher-income retirees should also know about IRMAA, an extra amount added to Part B and Part D premiums. In 2026, IRMAA starts above $109,000 in income for a single filer (based on your tax return from two years earlier).

What's available in Tuscaloosa

If and when you're ready to add a Medicare Advantage plan or a stand-alone Part D plan, remember that plan availability is set by county. Tuscaloosa is in Tuscaloosa County, and the number of plans and carriers offered there each year is listed on Medicare's Plan Finder at medicare.gov/plan-compare. That's the official tool for seeing what's available at your ZIP code.

Two enrollment windows to keep on your calendar:

• Annual Enrollment Period: October 15 – December 7 (choose or change Medicare Advantage or Part D coverage for the next year).
• Medicare Advantage Open Enrollment: January 1 – March 31 (if you're already in a Medicare Advantage plan, you get one chance to switch).

A simple decision path

If you're still working at 65 in Tuscaloosa, here's a plain way to think it through:

1. Ask HR whether your plan is primary or secondary to Medicare, and whether your drug coverage is creditable. Get it in writing. 2. Enroll in Part A at 65 if it's premium-free and you don't have an HSA you want to keep funding. 3. Delay Part B only if your employer coverage clearly qualifies and you'll get a Special Enrollment Period later. 4. Mark your calendar when you leave your job — you have 8 months for Part B and 63 days for Part D to avoid penalties. 5. Compare plans during AEP once you're ready, using medicare.gov.