Im Turning 65 Soon But I Like My Current Insurance Do I Have To Enroll In Medicare Will There Be Penalties If I Dont
It depends on how you are receiving your current insurance. If you are receiving employer-sponsored health insurance through either your or your spouses job when you turn 65, you may be able to keep your insurance until you retire. You will need to contact your employers benefits representative to find out whether they will continue your coverage when you turn 65. Since Medicare Part A is premium-free for most beneficiaries, you may want to enroll in Part A as soon as you are eligible , even if you will continue to receive employer-sponsored insurance at that time. If you are covered under an employer plan, you may want to delay signing up for Part B until you retire. However, it is a good idea to check with Social Security or Medicare to confirm you will not face a penalty for late enrollment. Similarly, unless you have drug coverage that is as good as what Medicare drug plans offer, you will need to sign up for a Medicare prescription drug plan when you enroll in Medicare or you may face a late enrollment penalty.
If you decide to drop your Marketplace coverage when you become eligible for Medicare, make sure your Medicare coverage has started before you cancel your Marketplace plan so that you avoid any gaps in coverage. You can start signing up for Medicare three months before your 65th birthday.
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Should You Wait Until 65 To Sign Up For Medicare
If you wait to sign up right before your 65th birthday , you may go for months without coverage.
Initial Enrollment Period
Your Initial Enrollment Period will last for 7 months. This Initial Enrollment Period begins 3 months before the month of your 65th birthday and ends 3 months after your birthday month. If you fail to enroll before your birthday month, your coverage will be delayed by a month or more.
General Enrollment Period
Youll have the option to sign up during the General Enrollment Period which falls between January 1 and March 31 every year if you didnt sign up during the Initial Enrollment Period. But youll potentially be charged a late enrollment penalty. Your premiums for Part B will be permanently increased by 10% for each year that you neglected to sign up for Part B and your monthly premiums for Part A will temporarily increase by 10%. As a rule, most people dont pay premiums for Part A, but then again, most people dont delay signing up for Part A. Your coverage will start on July 1, three months after the General Enrollment Period ends.
You may be able to avoid the late enrollment penalty and having to wait for the General Enrollment Period if you qualify for a Special Enrollment Period.
Special Enrollment Period
Its important to check with your insurer or HR department to make sure that your coverage is sufficient to postpone Medicare enrollment.
Do I Need To Sign Up For Medicare When I Turn 65
When you turn 65, your Initial Enrollment Period, or IEP, begins. This period runs for seven months starting three months before your 65th birthday. IEP ends three months after the month that you turn 65. Youâll definitely want to be on top of this deadline to be sure to avoid a monthly late enrollment penalty. You may be automatically enrolled in Medicare coverage options when you become eligible. Learn the difference between signing up for Medicare coverage options automatically and manually.
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Enrollment Periods To Keep In Mind:
- Medicare Initial Enrollment Period : Begins three months before you turn 65 and lasts for seven months.
- This period is when you sign up for Medicare Part A and Part B unless you qualify for automatic enrollment. IEP could vary if you qualify for coverage by having a disability.
Do I Need To Notify Social Security When I Turn 65
If I want Medicare at age 65, when should I contact Social Security? If you want your Medicare coverage to begin when you turn age 65, you should contact Social Security during the 3 months before your 65th birthday. If you wait until your 65th birthday or later, your Part B coverage will be delayed.
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Can You Get Medicare Before Turning 65
You may qualify for Medicare before you turn 65 if you collect Railroad Retirement Board or Social Security disability benefits or have certain health conditions.
- If you have a disability and collect Social Security or RRB benefits for 24 months, you will be automatically enrolled in Parts A and B in your 25th month.
- People who have amyotrophic lateral sclerosis are automatically enrolled in Original Medicare in their first month of collecting disability benefits.
- If you qualify for Medicare due to end-stage renal disease , signing up for Medicare is optional.
Please note that, if you have ESRD, you must enroll in both Parts A and B to get full dialysis and kidney transplant benefits.
Medicare Enrollment Due To Als Or Lou Gehrig’s Disease
For ALS patients, Medicare coverage starts as soon as Social Security benefits kick in.
You must be receiving Social Security benefits to qualify for Medicare with a disability or chronic condition, but unlike with other disabilities, there is no waiting period for ALS patients.
- Initial Enrollment Period : Medicare typically begins as soon as Social Security benefits take effect.
- Special Enrollment Period : Once you are approved for Social Security benefits and Medicare, your Medicare starts right away. If you continue working after your ALS diagnosis, you could enroll in Medicare under the SEP when your employer coverage ends.
- General Enrollment Period : If you wait for a GEP, your Medicare starts on July 1 of the year you apply. You may pay late enrollment penalties.
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Is Medicare A And B Free
Medicare A is free for some people, but for others, there might be a premium. It depends on your personal earnings or your family’s earnings. Medicare A includes hospital care.
Meanwhile, Medicare B isn’t free and comes under premium charges. The services in Medicare B include doctor visits, preventive care, and diagnostics.
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When Can You Apply For Medicare
You can first apply for Medicare during your Initial Enrollment Period . This begins 3 months before your eligibility month and lasts for 7 full months. So, if your birthday or 25th month of disability is in June, your Initial Enrollment Period begins on March 1 and ends on September 30.
If your birthday falls on June 1, though, your IEP opens on February 1 and closes on August 31.
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Signing Up For Medicare Part D
Signing up for Medicare Part D is simple. Once you enroll in Medicare Part A and Part B, you can enroll in Medicare Part D.
Like other parts of Medicare, unless you have creditable coverage, it is best to enroll during your initial enrollment period to avoid future penalties. To enroll, you must apply through Medicare and choose to enroll in any plan in your service area.
Medicare Eligibility Age Chart
Most older adults are familiar with Medicare and its eligibility age of 65. You can qualify for Medicare Part A and Medicare Part B by:
- Being age 65 or older
- Living with a qualifying disability
- Living with certain health conditions, like end-stage renal disease or amyotrophic lateral sclerosis
Individuals under 65 and already receiving Social Security or Railroad Retirement Board benefits for 24 months are eligible for Medicare. Still, most beneficiaries enroll at 65 when they become eligible for Medicare.
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Some Important Considerations Before Making Your Choice
If you work for a large company, compare your employer coverage and costs with Medicare. Be sure to look carefully at premiums for Parts B and D as well as the cost of a Medigap policy that would cover whatever Original Medicare doesnt . If youre happy with your current plan, you may well be better off staying with that and delaying Medicare enrollment until you retire.
Another thing to be aware of is that once you enroll in Medicare , youre no longer eligible to contribute to a health savings account . Therefore, if you want to continue to boost pre-tax savings with an HSA, you may want to postpone. In fact, to avoid an IRS penalty, you must stop contributions to an HSA 6 months prior to enrolling in Medicare Part A or claiming Social Security benefits after age 65.
If you work for a small company, you should probably sign up for Parts A, B, and D as soon as youre eligible. In this case, you most likely wont need a Medigap policy under Original Medicare, since your employer coverage will pick up costs not covered by Medicare. Check with your employer to see the impact of enrolling in Medicare Advantage.
Who Is Eligible For Medicare
Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease . Medicare has two parts, Part A and Part B . You are eligible for premium-free Part A if you are age 65 or older and you or your spouse worked and paid Medicare taxes for at least 10 years. You can get Part A at age 65 without having to pay premiums if:
- You are receiving retirement benefits from Social Security or the Railroad Retirement Board.
- You are eligible to receive Social Security or Railroad benefits but you have not yet filed for them.
- You or your spouse had Medicare-covered government employment.
To find out if you are eligible and your expected premium, go the Medicare.gov eligibility tool.
If you did not pay Medicare taxes while you worked, and you are age 65 or older and a citizen or permanent resident of the United States, you may be able to buy Part A. If you are under age 65, you can get Part A without having to pay premiums if:
- You have been entitled to Social Security or Railroad Retirement Board disability benefits for 24 months.
- You are a kidney dialysis or kidney transplant patient.
While most people do not have to pay a premium for Part A, everyone must pay for Part B if they want it. This monthly premium is deducted from your Social Security, Railroad Retirement, or Civil Service Retirement check. If you do not get any of these payments, Medicare sends you a bill for your Part B premium every 3 months.
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Do I Need To Get Medicare Drug Coverage
You can get Medicare drug coverage once you sign up for either Part A or Part B. You can join a Medicare drug plan or Medicare Advantage Plan with drug coverage anytime while you have job-based health insurance, and up to 2 months after you lose that insurance.
Even if you have a Special Enrollment Period to join a plan after you first get Medicare, you might have to pay the Part D late enrollment penalty. To avoid the Part D late enrollment penalty, dont go 63 days or more in a row without Medicare drug coverage or other .
If you have other drug coverage: Ask your drug plan if its creditable drug coverage.
Each year, your plan must tell you if your non-Medicare drug coverage is creditable coverage. Keep this information you may need it when youre ready to join a Medicare drug plan.
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Should I Sign Up For Medical Insurance
With our online application, you can sign up for Medicare Part A and Part B. Because you must pay a premium for Part B coverage, you can turn it down.
If youre eligible at age 65, your Initial Enrollment Period begins three months before your 65th birthday, includes the month you turn age 65, and ends three months after that birthday.
Note: Important Upcoming Change Rules for 2023 and later: If you accept the automatic enrollment in Medicare Part B or if you sign up during the first three months of your IEP, your coverage will start the month youre first eligible. Beginning January 1, 2023, if you sign up during the month you turn 65 or during the last three months of your IEP, your coverage starts the first day of the month after you sign up.
The following chart shows when your Medicare Part B becomes effective in 2022:
| In 2022, if you sign up during this month of your IEP | Your Part B Medicare coverage starts |
|---|---|
| One to three months before you reach age 65 | The month you turn age 65. |
| The month you reach age 65 | One month after the month you turn age 65. |
| One month after you reach age 65 | Two months after the month of enrollment. |
| Two or three months after you reach age 65 | Three months after the month of enrollment. |
The following chart shows when your Medicare Part B becomes effective in 2023:
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When Does Medicare Start For Esrd
If you enroll when you’re first eligible, your Medicare due to end-stage renal disease starts right away.
You’re usually eligible for Medicare after the fourth month of kidney dialysis.
- Initial Enrollment Period : If you have kidney failure, also called ESRD, you’re not automatically enrolled in Medicare and must apply manually. The IEP for ESRD patients depends on the type of treatment. For example, patients receiving dialysis at home are eligible for Medicare starting with the first month of treatment, if training requirements are met.
- Special Enrollment Period : There is no SEP for ESRD Medicare.
- General Enrollment Period : If you don’t enroll in Medicare when you are first eligible , you must wait for a GEP and may pay late enrollment penalties. Your Medicare would start on July 1.
Do You Automatically Get Medicare With Social Security
Medicare and Social Security are two benefits programs managed by the United States government. Medicare currently has over 61 million beneficiaries.
Both federal initiatives are linked, meaning that many individuals receiving Social Security payments may automatically receive Medicare benefits once they qualify for Medicare based on age or disability.
In this article we review how people can receive Medicare health insurance coverage alongside their Social Security benefits.
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When Does Medicare Kick In If You’re Enrolled Automatically
If you are automatically enrolled in Medicare whether due to age or disability your Medicare benefits kick in on the first day of the month you become eligible. So, if your birthday is on April 22, your Medicare benefits begin on April 1. The same is true if April marks your 25th month of collecting disability benefits.
The only exception is if your birthday is on the 1st of the month. In that case, your Medicare benefits begin the preceding month. So, if your birthday is April 1, your Medicare coverage starts on March 1.
Signing Up For Medicare Part A And Part B
If youre collecting Social Security benefits, youll automatically enroll in Medicare Part A and Part B upon turning 65. However, if youre not automatically enrolled, the best time to enroll in Medicare Part A is during your initial enrollment period.
If you worked a minimum of ten years while paying Medicare taxes, you can receive Medicare Part A premium-free. So, regardless of whether youre still working when you become eligible for Medicare, it makes sense to get Medicare Part A as soon as you can. This will help keep your out-of-pocket hospital inpatient costs to a minimum.
With Medicare Part B, you have different enrollment options. Medicare Part B medical insurance requires every beneficiary to pay a monthly premium. Therefore, if you have health coverage at age 65, you may delay Medicare Part B without penalties unless you lose creditable coverage before getting Medicare Part B.
Common reasons beneficiaries delay Medicare Part B include:
- Health insurance through a previous employer
- To remain with spousal coverage, if available, as Medicare Part B premiums are based on income reported two years prior
- Employer coverage
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