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Turning 65? What You Need to Know About Signing Up for Medicare 
The first of the 78 million baby boomers turned
65 on January 1, 2011, and some 10,000 boomers a day will reportedly be
turning 65 between now and 2030. If you are among those about to turn 65,
then it is time to think about Medicare. You become eligible for Medicare
as soon as you turn 65, and delaying your enrollment can result in
penalties, so it is important to act right away.
There are a number of different options to
consider when signing up for Medicare. Medicare consists of four major
programs: Part A covers hospital stays, Part B covers physician fees, Part
C permits Medicare beneficiaries to receive their medical care from among
a number of delivery options, and Part D covers prescription medications.
In addition, Medigap policies offer additional coverage to individuals
enrolled in Parts A and B.
Medicare enrollment begins three months before
your 65th birthday and continues for 7 months. If you are currently
receiving Social Security benefits, you don't need to do anything. You
will be automatically enrolled in Medicare Parts A and B effective the
month you turn 65. If you do not receive Social Security benefits, then
you will need to sign up for Medicare by calling the Social Security
Administration at 800-772-1213 or online at http://www.socialsecurity.gov/medicareonly/. It is best
to do it as early as possible so your coverage begins as soon as you turn
65.
If you are still working and have an employer
or union group health insurance plan, it is possible you do not need to
sign up for Medicare Part B right away. You will need to find out from
your employer whether the employer's plan is the primary insurer.
If Medicare, rather than the employer's plan, is the primary insurer, then
you will still need to sign up for Part B. Even if you aren't going to
sign up for Part B, you should still enroll in Medicare Part A, which may
help pay some of the costs not covered by your group health plan. For more
information on Part A, click
here.
If you don't have an employer or union group
health insurance plan, or that plan is secondary to Medicare, it is
extremely important to sign up for Medicare Part B during your initial
enrollment period. If you do not sign up for Part B right away, then you
will be subject to a penalty. Your Medicare Part B premium may go up 10
percent for each 12-month period that you could have had Medicare Part B,
but did not take it. In addition, you will have to wait for the general
enrollment period to enroll. The general enrollment period usually runs
between January 1 and March 31 of each year. For more information on Part
B, click
here.
With all the deductibles, copayments and
coverage exclusions, Medicare pays for only about half of your medical
costs. Much of the balance not covered by Medicare can be covered by
purchasing a so-called "Medigap" insurance policy from a private insurer.
You can search online for a Medigap policy in your area at http://www.medicare.gov/find-a-plan/questions/medigap-home.aspx.
For more information on Medigap, click
here.
Medicare also offers Medicare Part C (also
called Medicare Advantage). You must be enrolled in Medicare Parts A and B
to join a Medicare Advantage plan, the name for private health plans that
operate under the Medicare program. If you join a Medicare Advantage Plan,
the plan will provide all of your Part A and Part B coverage, and it may
offer extra coverage, such as vision, hearing, dental, and/or health and
wellness programs. Most such plans include Medicare prescription drug
coverage. For more information on Medicare Advantage, click
here.
Finally, Medicare offers prescription drug
coverage under Medicare Part D. If you are not going to sign up for a
Medicare Advantage plan with prescription drug coverage, then you will
want to enroll in a prescription drug plan at the same time you sign up
for Parts A and B. For every month you delay enrollment past the initial
enrollment period, your Medicare Part D premium will increase at least 1
percent. You are exempt from these penalties if you did not enroll because
you had drug coverage from a private insurer, such as through a retirement
plan, at least as good as Medicare's. This is called "creditable
coverage." Your insurer should let you know if their coverage will be
considered creditable. Visit the Medicare Web site at https://www.medicare.gov/find-a-plan/questions/home.aspx
to find a drug plan in your area. For more information on Medicare's
prescription drug coverage, click
here.
After you've signed up for Medicare Part B, you
can schedule a free "Welcome to Medicare" exam with your doctor.
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