Does retiring count as a Special Enrollment Period?

When most people think about Medicare enrollment, they picture a fixed window around their 65th birthday. But if you delayed Medicare because you had qualifying coverage through an employer, retirement triggers what's called a Special Enrollment Period, or SEP. You have eight months from the date you retire or lose that employer coverage, whichever comes first, to enroll in Part B without facing a late enrollment penalty. That penalty, by the way, adds 10 percent to your Part B premium for every 12-month period you were eligible but didn't enroll, and it lasts for as long as you have Part B. A few things worth knowing. The eight-month window starts when coverage ends, not when COBRA or retiree insurance begins. COBRA and retiree health plans do not count as qualifying employer coverage for purposes of delaying Medicare, so if you retire and move to COBRA, your SEP clock is likely already ticking. You'll also want to coordinate Part D, which covers prescription drugs. If you go more than 63 days without creditable drug coverage, a separate late penalty can kick in there too. Timing all of this well is genuinely important.

Related Medicare Resources

• Medicare Advantage HMO Plans
• Medicare Advantage PPO Plans
• Medicare Supplement Plan G
• Compare Medicare Plans