When you unretire and return to work, your Medicare coverage continues unchanged. You can work while keeping your Medicare benefits active. However, if your new employer has 20 or more employees and offers group health insurance, their coverage becomes primary and Medicare becomes secondary.

You have options to consider. If the employer coverage is comprehensive and costs less than your Part B premium of $202.90 monthly, you might choose to disenroll from Part B. This is a serious decision because re-enrolling later could trigger a permanent penalty of 10% for each full 12-month period you went without creditable coverage.

Most people keep their Part A since it’s usually premium-free. If you decide to drop Part B, you must formally disenroll through Social Security. This isn’t simply putting Medicare on hold.

When you retire again, you’ll have an 8-month Special Enrollment Period to re-enroll in Part B without penalty, starting the month after your employer coverage ends. You’ll need to complete form CMS-L564 yourself and have your employer complete form CMS-40B to verify your coverage dates. Submit both forms to Social Security to avoid penalties.