Help! I’m almost 65 – What do I need to know about Medicare?
If you’re nearing your 65th trip around the sun and feeling a little lost when it comes to the wild frontier known as Medicare, I’m here to help. First of all, relax and know that you are not alone. About 10,000 Baby Boomers turn 65 every day, according to Forbes, and that number is expected to double in the next 20 years. This means more resources and options will surely 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 Part A and/or Part B in order to avoid penalties.
Your enrollment window begins three months before the month of your 65th birthday, imcludes 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 group plan requirements to ensure that your particular policy and circumstances meet the specific guidelines that would exclude you from Medicare enrollment. Likewise, it is wise to make sure 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. 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’s rates are substantially lower than normal health insurance rates, it typically covers about half of all medicals costs incurred. For this reason, many purchase Medicare Supplements (Medigap), which help to fill in the cracks and costs 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.
- A pre-Medicare health insurance product is
available for 63-64 year olds
If you find yourself too young for Medicare but needing coverage, I do offer a product that can bridge that 2 year gap, starting at age 63.
If you are nearing 65 and would like guidance into the Medicare frontier, give me a call and 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.
