If you’re nearing your 65th trip around the sun and feeling lost in the wild frontier known as Medicare, I’m here to help. First of all, relax and know that you are not alone. According to Forbes, about 10,000 Baby Boomers turn 65 every day, and that number is expected to double over the next 20 years. This means more resources and options will become available as the playing field widens.
For now, there are a few key pieces of information that you need to know.
- You have a 7-month window to sign up for Medicare to avoid penalties.
Your enrollment window begins three months before the month of your 65th birthday, includes the month of your birthday, and ends three months after the month of your birthday. If you sign up past that time, you may face a 10% increase in your Part B premiums, as well as other rate increases.
- There are situations where you may not need to sign up for Medicare.
These include:
- If you are currently receiving Social Security benefits
- If you are currently part of a group health insurance plan
Naturally, you would need to double-check your group plan against Medicare’s requirements to ensure that your particular policy and circumstance meet the specific guidelines that would exclude you from Medicare enrollment. Likewise, it is wise to verify that your Social Security benefits will automatically roll over into Medicare. It’s also important to note that retiree coverage, VA benefits, and COBRA do not exclude you from the requirement to enroll in Medicare.
- Medicare consists of four major components which are Part A, Part B, Part C, and Part D.
Part A covers hospital care.
Part B covers physician fees.
Part C is another name for Medicare Advantage. This is a product provided by private insurance companies that are contracted with Medicare to provide coverage found in Parts A and B. They may also cover additional benefits.
Part D covers prescription medications. This is an optional benefit and may not be included in all plans.
- Medicare may not cover all medical expenses.
Although Medicare rates are substantially lower than normal health insurance rates, plans typically cover about half of all medical costs incurred. For this reason, many purchase Medicare Supplements (Medigap), which help to fill in the cracks and expenses that Medicare does not cover. They are sold by private insurance companies and may help pay for costs like co-payments, co-insurance, and deductibles.
RELATED ARTICLE: Understanding Medigap: What You Need to Know
- A pre-Medicare health insurance product is available for ages 63-64.
If you find yourself too young for Medicare but need coverage, I offer a product that bridges the 2-year gap starting at age 63.
If you are nearing 65 and need guidance exploring the Medicare frontier, schedule a phone call with me. I will be happy to guide you through this transition with ease. I can also help you find an excellent Medicare Supplement or Medicare Advantage policy that fits your needs and lifestyle.
