What you'll learn
- If you or your spouse have group health coverage from current employment, you can usually delay Part B without a penalty.
- At employers with fewer than 20 employees, Medicare usually pays first, so you may need Part B at 65.
- When the job or coverage ends, whichever comes first, you have 8 months to sign up for Part B.
- If you contribute to an HSA, stop contributions 6 months before you apply for Medicare, because Part A is backdated up to 6 months.
Plenty of Texans keep working past 65, whether in an office in Dallas, a refinery near Beaumont, or a family business out in the Hill Country. Many assume they have to sign up for all of Medicare the month they turn 65. Not always. Whether you can wait on Part B depends on a few specific details.
The basic rule
If you or your spouse have group health coverage based on current employment, you can usually delay Part B, skip the $202.90 monthly premium (2026), and avoid a late penalty later.
When you stop working or lose that coverage, whichever happens first, you get an 8-month Special Enrollment Period to sign up for Part B. Miss it, and you may face a gap in coverage and a lifelong late enrollment penalty.
Why employer size matters
| Employer size | Who pays first | What it usually means |
|---|---|---|
| 20 or more employees | Your employer's group plan | You can typically delay Part B |
| Fewer than 20 employees | Medicare | You likely need Part B at 65, or your plan may not pay its share |
Texas has a lot of small businesses. If you work for one, ask your benefits administrator, in writing, how the plan coordinates with Medicare. A small-employer plan may refuse to pay for care that Medicare should have paid first.
If you're under 65 and on Medicare because of a disability, the line is 100 employees, not 20. See our guide to Medicare under 65 with a disability in Texas.
The HSA trap
If you contribute to a Health Savings Account, you can't keep contributing once you have any part of Medicare, including premium-free Part A.
There's a second catch. When you sign up for Part A after 65, coverage starts up to 6 months back from when you sign up, though not earlier than the month you turned 65. Medicare advises that you and your employer stop HSA contributions 6 months before you retire or apply for Social Security, to avoid a tax penalty. Money already in your HSA can still be used for qualified expenses.
What doesn't count as current employment
- COBRA. Your 8-month window starts when the job ends.
- Retiree coverage. Medicare pays first, and some retiree plans won't pay unless you have Parts A and B.
- Coverage that isn't employer group coverage, such as self-employed or individual plans
How to sign up when you retire
When your job-based coverage is ending, you can:
- Apply online through Social Security, any time of year during your Special Enrollment Period, or
- Fax, mail, or bring in two forms to your local Social Security office:
- CMS-40B, the application for Part B
- CMS-L564, the request for employment information, which shows you had group coverage
Part B generally starts the month after Social Security gets your completed forms. Applying the month before your coverage ends can help you avoid a gap. For the full process, see how to sign up for Medicare Parts A and B in Texas.
Don't forget drug coverage
If your job's drug coverage is "creditable," meaning at least as good as Medicare's standard drug coverage, you can delay Part D too. Your plan must tell you whether it is. Keep that notice, and avoid going more than 63 days without creditable drug coverage.
Free local help
Texas HICAP offers free, unbiased Medicare counseling at 1-800-252-9240. It's a good call to make a few months before you retire. If you'd rather talk in Spanish, ask whether a Spanish-speaking counselor is available.
Common questions
What forms do I need to sign up for Part B after leaving my job?
You can apply online through Social Security. By fax, mail, or in person, use form CMS-40B to enroll in Part B and form CMS-L564, which shows you had job-based group coverage.
Should I take Part A while I'm still working?
Many people do, because Part A is usually premium-free. But if you or your employer contribute to a Health Savings Account, talk with your benefits team first. Once you have Medicare, HSA contributions must stop.
Does COBRA let me delay Part B?
No. COBRA isn't coverage from a current job. Your 8-month window starts when you stop working, even if you choose COBRA, so don't wait for COBRA to end.
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