When you turn 65 or retire, you need to sort out your government benefits.  These benefits are Social Security (pension) and Medicare (medical).

Generally, you want to participate in Medicare as soon as possible because it eliminates your private pay health care and avoids penalties.

In some cases your employer covers your healthcare after age 65 either because you are still employed or they have a retiree plan.  In those cases, you may prefer the employer plan because it is cheaper or has better coverage.

You will almost always take Medicare Part A because it is free, but may want to pass on Medicare Part B and Part D because it costs money.

Medicare has 3 parts

Part A covers hospital costs and has no premiums.

Part B covers outpatient care, such as doctor visits, x-rays and tests, and generally costs $105 per month in 2015. The Part B premiums are deducted from your Social Security benefits.

Part D covers prescription drugs and generally costs $32 per month.

Generally, you want to participate in Medicare as soon as possible because it eliminates your private pay health care.

In some cases your employer covers your healthcare after age 65 either because you are still employed or they have a retiree plan.  In those cases, you may prefer the employer plan because it is cheaper or has better coverage.

You will always take Medicare Part A because it is free, but may want to pass on Medicare Part B and Part D because it costs money.

For a more detailed explanation, see my website.