Ask the Expert:

Everything I read tells me to sign up for Medicare Part A during the three months before or after my 65th birthday. But Medicare just told me I don't have to sign up till I retire and no longer have employer-covered insurance. I'm confused. I don't want to have to pay extra for Medicare when I finally retire.

It sounds like you're confusing Medicare Part A with Medicare Part B.

Most people pay nothing for Medicare Part A, which covers inpatient hospital care. It's free if you (or your spouse) have paid into Social Security for 10 years or more. You don't have to sign up for Part A at 65 if you're covered at work. But it's a sensible choice because Part A provides a cost-free extra layer of insurance: "If you're covered at work, Part A is secondary to your employer's health plan," says Joe Baker, president of the Medicare Rights Center, a nonprofit advocacy group.

Medicare Part B covers outpatient expenses, including doctors' fees. It isn't free, so you don't want to sign up for it as long as you're covered at work. But you don't want to enroll late, either! If you're covered through a job at a company that employs fewer than 20 people (or by an employer-sponsored retiree health plan), your penalty-free Part B enrollment window closes three months after your 65th birthday. If you're covered through a current job at a company that employees 20 or more people, the window closes eight months after the termination of the job or the employer coverage, whichever comes first. If you sign up late, your premium is 10 percent higher for each year of delay.

The bottom line Call Medicare six months before turning 65 to learn your enrollment deadlines!

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