Rules for enrolling in Medicare are complex. But when people postpone retirement past age 65, as many people are doing these days, it's easy to get caught up in red tape...
Older adults can't get into Medicare any time they want. The easiest time to sign up is when you turn 65, and, if you're already collecting Social Security, enrollment is automatic. But if you keep working beyond that age and opt instead to stay with your employer's group health plan, your options for getting Medicare can be sharply limited. It's important to pay attention to strict enrollment deadlines, or you may face a fine and risk going without coverage for months.
That's what happened to Barbara Gardner, 66, who chose to continue on her former employer's plan instead of signing up for Medicare when she retired last year. "My employer's plan offers much better coverage," says the Austintown, Ohio, resident, who suffers from rheumatoid arthritis and asthma.
Now, Ms. Gardner realizes her decision caused her to run afoul of a Medicare rule that required her to enroll within eight months of leaving her job. As a result, Ms. Gardner's next chance to sign up for Medicare is in January, and her coverage won't begin until July. With her current health plan due to expire in March, Ms. Gardner is facing several months without insurance. And as a penalty for missing the deadline, her monthly Medicare premium will permanently be increased by 10%. "I don't know what I am going to do," she says, adding that she can't afford to purchase an individual policy for the months she'll be without insurance.

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Source: The Wall Street Journal