Can I cancel my employer health insurance when I turn 65?
Asked by: Rita Medhurst | Last update: September 27, 2025Score: 5/5 (72 votes)
Can I stay on my employer's insurance when I turn 65?
Companies with 20 or more employees are required to continue offering health insurance to current workers and their spouses who are 65 or older. If you're insured under a plan from a company of that size, you have the option to enroll in Medicare and decline your group plan, but the employer can't force this decision.
Can you Unenroll from employer health insurance at any time?
You generally can't cancel your policy anytime if you have group health insurance through your employer. To cancel your employer's healthcare plan outside your company's open enrollment period, you must experience a QLE. This will trigger a SEP. If you have COBRA, you can cancel at any time.
Can I drop my employer health insurance for Medicare?
You can sign up for Medicare and drop your employer health plan. Not the other way around because you'd need Medicare entitlement as a qualifying life event to cancel your employer health plan outside of open enrollment.
What happens when you turn 65 and are still working?
Yes, you can continue to work between the ages of 65 and 67. However, if your earnings exceed $22320, your benefits will be reduced by $1 for every $2 you earn over that limit.
Can My Employer Drop My Health Insurance When I Turn 65? - InsuranceGuide360.com
Is it mandatory to go on Medicare at age 65?
You're not required to enroll in Medicare when you turn 65. However, if you don't enroll when you're first eligible you might be subject to Part A, Part B, and Part D late enrollment penalties.
Do I need to notify Social Security when I turn 65?
You don't need to notify Social Security that you're turning 65. Instead, you apply for Social Security when you want your benefits to start, which could be as early as age 62 or as late as age 70.
How do I decline my employer health insurance?
You can decline or waive this benefit and get your own insurance. You may have to sign a waiver that you will be obtaining another insurance plan or accepting someone else's insurance coverage so that your employer has proof that you are insured for legal purposes.
Can I cancel my health insurance when I get Medicare?
If you are a United States citizen aged 65 or older, you're eligible for Medicare – even if you already have a group health plan (GHP) through your job. So the answer is yes, you may drop your employer health insurance to go on Medicare (assuming you're at least 65).
Is Medicare Part B free at age 65?
Medicare Part A (hospital insurance) is free for almost everyone. You have to pay a monthly premium for Medicare Part B (medical insurance). If you already have other health insurance when you become eligible for Medicare, you may wonder if it's worth the monthly premium costs to sign up for Part B.
Can I sue my employer for Cancelling my health insurance?
If the company does not have a valid reason, you may have grounds for a lawsuit. To sue someone under ERISA you must take administrative steps first, such as filing a complaint with the federal Department of Labor. If you exhaust that process without getting justice, then you can turn to the courts.
Can I cancel my insurance without a qualifying event?
If you wish to cancel an employer plan outside of the company's open enrollment, it would require a qualifying life event. Under Section 125 of the Internal Revenue Code, if you make a decision to drop without a QLE, then you and your employer will incur tax penalties.
How long can I keep my health insurance after I quit my job?
COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself, plus a small administrative fee. Contact your employer to learn about your COBRA options.
Do I have to get Medicare if I have employer coverage?
If an employer has fewer than 20 employees, generally you will need to enroll in Medicare during your Initial Enrollment Period. If you have health coverage through a spouse's employer, what you can do will depend on the employer's rules. You may be able to delay or you may need to enroll at age 65.
When can an employer terminate health insurance?
An employer may at any time amend the terms of an existing plan, including termination of the plan. Additionally, an employer may reduce or terminate health benefits of retired former employees who become eligible for Medicare Benefits without violating the Age Discrimination in Employment Act.
Do companies force you to retire at 65?
In most cases, being forced out of a job because of age would violate California and federal anti-discrimination laws. If you're told you must retire at a given age or feel your employer is forcing you to retire against your will, your legal rights may be violated, and you should call our office.
What is the difference between cancellation and disenrollment?
Canceling coverage can only take place if the health or dental plan has not started yet. Disenrolling from coverage can only take place once the health or dental plan has already started. A consumer may disenroll from coverage if it is after the coverage start date.
Can you stay on employer health insurance after 65?
It depends on how you are receiving your current insurance. If you are receiving employer-sponsored health insurance through either your or your spouse's job when you turn 65, you may be able to keep your insurance until you (or your spouse) retire(s).
When I turn 65 is Medicare mandatory?
Some people get Medicare automatically, others have to actively sign up -- it depends if you start getting retirement or disability benefits from Social Security before you turn 65.
Can I drop my employer health insurance anytime?
When Can You Cancel Health Insurance? During your employer group's annual open enrollment period each year, you can cancel or change your coverage. Outside of open enrollment, cancellation is typically only allowed for life status change events.
What if I don't want my employer's health insurance?
Not Mandatory: You are not required to take your employer's health insurance if you don't want it; you can opt-out and choose another plan. Consider Coverage and Costs: Before opting out, compare your employer's plan with other options, considering both coverage and costs, including any potential tax benefits.
Is employer health insurance worth it?
Advantages of an employer plan: Your employer often splits the cost of premiums with you. Your employer does all of the work choosing the plan options. Premium contributions from your employer are not subject to federal taxes, and your contributions can be made pre-tax, which lowers your taxable income.
What to do 3 months before turning 65?
If you are approaching age 65 and you're not receiving early retirement Social Security or Railroad Retirement benefits, you can apply for Medicare during your 7-month initial enrollment period (IEP). Your IEP begins 3 months before you turn 65, includes the month of your birthday and ends 3 months later.
At what age is Social Security no longer taxed?
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Is it a good idea to get Medicare if you're still working at 65?
If your or your spouse's employer has 20 or more employees and a group health plan, you don't have to sign up for Medicare at 65. But if you get Medicare Part A for free, typically you should sign up. (After all, it's free.) In some cases, Medicare Part A may cover what your employer plan doesn't.