For those retiring at 65:

• The availability of coverage for an employer or a spouses' employer should factor into someone's Medicare choices.
• One of the first decisions is to choose between (a) Original Medicare, plus prescription drug Part D plans and possibly Medigap supplemental coverage, and (b) a Medicare Advantage plan.
• Those turning 65 have three months before, the month of and three months after their birthday to choose. Waiting until after their birthday, even in the three-month window, may lead to a gap in healthcare coverage. Waiting longer may lead to enrollment penalties with Part B (medical insurance) coverage and Part D, and can last for as long as someone has Medicare.
• A spouse and children covered under employer health insurance need to be provided for when moving to Medicare coverage. Options vary, but can include private health coverage.

Assuming a worker took appropriate steps and coordinated Medicare coverage with their employer at 65, they should be able to transition to Medicare without penalties when they retire. Consider the following:

• Depending on their employer's size, the retiree upon turning 65 may need to enroll in Medicare and coordinate coverage with both their employer and the federal program.
• Individuals who didn't enroll in Part B when they were first eligible because they had appropriate coverage under an employer or spouse's employer plan may receive a special enrollment period when that existing coverage ends. Steps should be taken so that new Medicare coverage can begin as soon as their old employer coverage ends.
• Medigap, or supplemental Medicare insurance, must be considered at age 65. Waiting can limit the options available.

For clients and employees who plan to retire before age 65, advisors should make sure they have planned for healthcare coverage until they are eligible for Medicare.