How Does Medicare and Employer Coverage Work Together?

Christian Worstell
In this article...
  • Wondering who pays for your Medicare if you are working? Let's discuss how Medicare and employer coverage can work together in our comprehensive guide today.

If you're still working when you become eligible for Medicare at age 65, you might also still have access to employer coverage. Many companies offer group health insurance policies, which provide a significantly more affordable way to get coverage compared to an individual policy.

But if you're wondering if you can use Medicare and employer coverage together, you're not alone. 

How Does Medicare and Employer Coverage Work Together?

You can use Medicare alongside employer coverage, but how it's used is determined by several factors. The most important factor is the size of your company, followed by the type of Medicare plan you have. 

If your employer has more than 20 employees, their coverage will be primary and you'll use Medicare as your secondary. In this scenario, it may make sense to choose only Medicare Part A, which is hospital coverage that's usually premium-free. 

Medicare will usually be your primary if your company has less than 20 companies. However, this depends on the type of group plan offered and how extensive the coverage is. If you're unsure, you can speak either with your company's human resource department or with the Social Security Administration to determine which insurance is primary. 

Who Pays for Your Medicare If You Are Working?

Medicare Parts B, C and D come with monthly premiums, as do Medigap plans. If you're still employed, you'll have to pay for these premiums yourself. However, there are some situations where your employer may reimburse these premiums in whole or part. To qualify for medical reimbursements, your employer has to have a Section 105 plan, which is governed by Section 105 of the Internal Revenue Code

Can You Keep Your Employer Health Insurance With Medicare?

Yes, you can keep your employer's health insurance with Medicare. However, Medicare will usually be used as secondary coverage. This means charges will be billed to your employer's health insurance policy first, and Medicare will only be billed for things that aren't covered by your primary. 

However, you may want to postpone enrolling in Medicare Part B or Part C until you stop working. While Part A covers hospitalization costs and doesn't have a premium, other types of Medicare coverage do. If you're already using a group health insurance policy, you'll save money by waiting. 

Christian Worstell
About the Author

Christian Worstell is a senior Medicare and health insurance writer with He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.

Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.

While at HelpAdvisor, Christian has written hundreds of articles that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.

Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.

A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. You can find Christian’s most recent articles in our blog.

If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at

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