If you’ll be turning 65 in 2023, it means you can sign up for Medicare. In fact, your initial enrollment window begins three months before the month of your 65th birthday, so if you sign up ahead of time, you can arrange to have Medicare coverage as soon as you’re eligible.
But just because you can enroll in Medicare doesn’t automatically mean that you should. Here are a few reasons to consider saying no to Medicare in 2023.
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1. You have a really good workplace plan
One of the biggest myths about Medicare is that coverage under the program is free. That’s not true at all. While Part A, which covers hospital care, usually does not require enrollees to pay for premiums, Part B, which covers outpatient care, comes with a monthly premium you’ll either need to pay directly or have deducted from your Social Security benefits, if you’re receiving them.
In addition, there are other costs you’ll face under Medicare, from deductibles to coinsurance to copays. If you have a great health plan through your employer — one that’s heavily subsidized and doesn’t come with many out-of-pocket costs — then it could be more beneficial for you to stay on that plan, rather than switch over to Medicare.
One thing you should know is that if you don’t sign up for Medicare on time, you could face lifelong surcharges on your Part B premiums. But if you’re covered by a qualified group health plan at work, you won’t face those surcharges if you enroll during a special window upon leaving your job or losing your employer health coverage.
2. You want to keep funding an HSA
The more money you’re able to put into your health savings account (HSA) to invest and carry forward, the less stressful healthcare costs are apt to be during retirement. Plus, HSAs give you a tax break on the money you contribute, so funding one is a great way to lower your taxes on a near-term basis.
Once you enroll in Medicare, though, you’ll be barred from making HSA contributions. You can use existing HSA funds to pay for Medicare costs, but you can’t continue to put money into your plan once you enroll in Medicare. So if you want to keep funding that account, you’ll want to hold off on Medicare.
3. You’re retiring but have access to an affordable health plan through your spouse
It may be that you’re leaving your job in 2023 and are of age to sign up for Medicare. Before you rush to do so, think about whether you can get onto a spouse’s plan that’s more affordable or offers better coverage. You may find that your costs under that plan are lower than what you’ll face with Medicare.
When it comes to avoiding Part B surcharges for late enrollment, you don’t have to be working yourself — you just need to be enrolled in a qualified group health plan. If your spouse’s plan is eligible, you should be all set.
Signing up for Medicare could be a wise move for you in 2023 — or not. Before you enroll, explore other options that may work out better for you financially.
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