Medicare Special Enrollment Period
You may choose not to enroll in Medicare Part B when you are first eligible because you are already covered by group medical insurance through an employer or union. If you lose your group insurance, or if you decide you want to switch from your group coverage to Medicare, you can sign up at any time that you are still covered by the group plan or during a Special Enrollment Period.
Your eight-month special enrollment period begins either the month that your employment ends or when your group health coverage ends, whichever occurs first. If you enroll during an SEP, you generally do not have to pay a late enrollment penalty.
The Special Enrollment Period does not apply if youre eligible for Medicare because you have ESRD. Please also keep in mind that COBRA and retiree health coverage are not considered current employer coverage and would not qualify you for a special enrollment period.
Can I Get Medicare Coverage If I Don’t Sign Up For Social Security At 65
Who is this for?
If you’re not planning on signing up for Social Security right away, you can still enroll in Medicare. Learn how here.
These days, people are retiring later in life than their parents did. If youre still working, you might not want to start collecting Social Security benefits right when you turn 65.
But you can enroll in Medicare at 65 even if youre not getting Social Security. In some cases, signing up for Medicare as soon as youre eligible is better than waiting.
Heres why:
- Medicare might have better coverage than your health insurance plan through work.
- If you dont have a comparable health insurance plan and you wait to sign up for Medicare, your Medicare premiums will be higher when you do sign up.
Medicare Vs Social Security
Health insurance is offered through the Center for Medicare and Medicaid Services . Social Security provides people with a monthly stipend.
Medicare Part A is free for most recipients and Part B is usually deducted from your monthly social security check.
When beneficiaries enroll in Medicare at full retirement age, they may enroll through one of the online options. However, be careful if you do not want to activate your Social Security Income, or SSI benefit.
Follow the options that allow you to enroll in Medicare separate from your Social Security benefit.
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What Should You Do Once You Get Medicare
Although you can rely on Original Medicare alone, 86% of Medicare enrollees also have some type of additional coverage.2 It can be from an employer, a privately-purchased plan or from a government-run program like Medicaid. Original Medicare pays for a great deal of healthcare, but still leaves you with potentially costly gaps in healthcare coverage. Supplementary plans can cover these gaps including deductibles and copayments at a fraction of the out-of-pocket rate.
MedicareGuide.coms plan selector is designed to intelligently bring you the best Medicare Supplement plans. These plans, also known as Medigap policies, fill the gaps in coverage that you would otherwise be charged by Original Medicare.
What Is The Medicare Part B Late
If you do not sign up for Medicare Part B when you are first eligible, you may need to pay a late enrollment penalty for as long as you have Medicare. Your monthly Part B premium could be 10% higher for every full 12-month period that you were eligible for Part B, but didnt take it. This higher premium could be in effect for as long as you are enrolled in Medicare. For those who are not automatically enrolled, there are various Medicare enrollment periods during which you can apply for Medicare. Be aware that, with certain exceptions, there are late-enrollment penalties for not signing up for Medicare when you are first eligible.
One exception is if you have health coverage through an employer health plan or through your spouses employer plan, you can delay Medicare Part B enrollment without paying a late-enrollment penalty. This health coverage must be based on current employment, meaning that COBRA or retiree benefits arent considered current employer health coverage.
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This Is The Reason Why
Most people outlive their retirement savings and studies show were living longer than previous generations. With this in mind, we need to prepare for a longer retirement period.
That means if you can delay receiving benefits past age 65, you would receive a higher monthly payment. For most folks, that higher monthly payment would kick in around the time their personal savings has been exhausted.
Although youre evaluating your life expectancy, you need would do well to keep in mind the life expectancy of your spouse. Especially if that spouse plans to collect Social Security Income based on your benefits.
If your spouse plans to make a claim for Social Security Income based on their own benefits, then this is a moot point your spouse would need to make these same decisions that you now face.
The short and skinny, there is no right or wrong answer. Its never too soon to start considering your personal situation and begin evaluating where you are in life right now measure that against how you want to live when you retire.
Every person is unique, and you need to weigh your options before deciding. Take heed of the call to action sang by the band Rush, If you choose not to decide, you still have made a choice.
Its a lot to take in and it should take you more than an afternoon to decide if its in your best interest to claim Medicare without claiming your Social Security retirement income.
When in doubt, break out a pencil and paper and crunch the numbers.
Ask Rusty Can I Get Medicare Without Claiming Social Security
Dear Rusty: I am 63 and my full retirement age is 66 and 2 months. I want to try and hold out to 70 before I start collecting SS. My 2018 Social Security statement said Im eligible to apply for Medicare at 65. Do I have to be receiving Social Security payments before I can be covered for Medicare? Or can I be covered beginning at 65 and not receive a Social Security check until I desire at 70? Signed: Approaching Medicare Age
Dear Approaching: You can do just as you wish you can enroll in Medicare at age 65 without claiming Social Security until you are 70. If you wait until you are 70 to claim Social Security your benefit amount will be nearly 31% higher than it would be at your full retirement age of 66 + 2 months.
You should also consider your prescription drug coverage needs once youre eligible for Medicare. If you do not have creditable prescription drug coverage when you turn 65, you will be subject to a late enrollment penalty if you purchase a drug plan later. Although prescription drug plans are referred to as Medicare Part D, this coverage is purchased from private providers either as an individual plan, or as part of a Medicare Advantage plan .
Finally, if you arent collecting Social Security when you enroll in Medicare Part B, you will need to make separate arrangements to pay the Part B premium. This is quite easy to do in any of the following ways:
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How To Apply For Medicare Without Claiming Social Security
The Social Security full retirement age is 66 for most baby boomers, and you receive a smaller monthly payout if you sign up at a younger age. Some retirees further delay signing up in order to qualify for larger monthly payments later in retirement. However, the Medicare eligibility age remains 65. So, if you want to wait until 66 or later to claim Social Security, you will have to sign up for Medicare separately at age 65. Hereâs how to sign up for Medicare while delaying claiming Social Security.
Social Security and Medicare are separate decisions. You donât need to sign up for both programs at the same time. âMost people take Social Security earlier than 65, but thereâs a penalty for that, and you get less per month if you start earlier,â says Linda Fried, a medical doctor and professor of public health at Columbia University. For example, if you signed up for both Social Security and Medicare simultaneously in 2016 at age 65, you will only receive 93.3 percent of the Social Security benefit you have earned due to starting payments before your full retirement age of 66.
Emily Brandon is the author of âPensionless: The 10-Step Solution for a Stress-Free Retirement.â
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Will I Get Medicare At 62 If I Retire Then
If you retire before the age of 65, you may be able to continue to get medical insurance coverage through your employer, or you can purchase coverage from a private insurance company until you turn 65. While waiting for Medicare enrollment eligibility, you may contact your State Health Insurance Assistance Program to discuss your options.
Here are other ways you may be eligible for Medicare at age 62:
- Or, you have been diagnosed with End-Stage Renal Disease
- You may qualify for Medicare due to a disability if you have been receiving SSDI checks for more than 24 months
- Are getting dialysis treatments or have had a kidney transplant
Medicare information is everywhere. What is hard is knowing which information to trust. Because eHealths Medicare related content is compliant with CMS regulations, you can rest assured youre getting accurate information so you can make the right decisions for your coverage. Read more to learn about our Compliance Program.
Medicare information is everywhere. What is hard is knowing which information to trust. Because eHealths Medicare related content is compliant with CMS regulations, you can rest assured youre getting accurate information so you can make the right decisions for your coverage. Read more to learn about our Compliance Program.
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When To Start Your Social Security
Here in America, you are eligible to begin taking Social Security benefits as early as age 62 if you have earned enough credits. The latest that you can start your benefits is at age 70.
If you begin your Social Security benefits at age 62, your benefits will be reduced based on the number of months that you receive your benefits before you have reached your full retirement age.
Your full retirement age in terms of Social Security is generally considered to be at age 66 and a half. However, this varies based on the year that you were born. Visit this page on the Social Security website for more specifics.
In very simple terms, taking income benefits earlier than your full retirement ages means that your monthly benefit amount will be lower. Waiting and taking those benefits later, up to age 70, means you will have a larger monthly benefit check.
Delaying your Social Security income benefits does not affect your eligibility for Medicare at age 65 either.
My Dad And His Decision
My own dad, Joe, is receiving his social security income and started taking benefits when he was 65 years old.
Having been diagnosed with COPD in his late 20s, then Atrial Fibrillation in his 50s and a few other health conditions, Joe crunched the numbers around age 62. He decided that in order to get the most money from his years of paying into social security, collecting at age 65 presented the best-case scenario.
One in every four 65-year-olds will live past the age of 90. While its a tough pill to swallow, Joe doesnt expect to live to 90.
So, in order to maximize his retirement earnings, he filed his claim for SSI at age 65. Yes, he filed prior to full retirement age. However, he now has the time and income to enjoy his golden years.
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Should I Sign Up For Medicare Part A
Most people who have worked and paid Medicare taxes for 10 years can get Medicare Part A with no monthly premium. Because of this, many people choose to sign up for Medicare Part A even if they have health insurance through work.
Medicare Part A covers things like hospice care and skilled nursing facility care that your health plan through work might not cover.
When youre getting Social Security benefits, youre automatically signed up for Part A. If youre not getting Social Security, you should sign up directly through Social Security. Find out how to sign up in our Help Center.
Tip: Always talk to your companyâs human resources department before you make the decision to sign up for Medicare. Your health insurance plan might work differently for you after you sign up for Medicare.
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Some Basics Of Medicare Supplemental Insurance Plans
Supplemental plans fill the gap in medical expenses that Original Medicare does not fully cover.
For example, if you need care for a medical condition, Medicare Part B only covers 80 percent of those costs, and you are on the hook for the remaining 20 percent.
Using a supplemental plan, you can significantly reduce the out-of-pocket costs that can add up from medical care, including copayments, deductibles and coinsurance.
Private insurance companies offer supplemental plans, also known as Medigap.
If you cannot afford the out-of-pocket expenses you incur from Part B, then a supplemental policy may help you curb those costs.
You must pay a monthly premium for a supplemental plan, so it is imperative that you shop by comparison when you are searching for one.
Just like traditional health care, you should never decide on the first insurance company that you see.
This is especially true here, because Medigap plans are standardized into types, and plans of the same type offer the exact same coverage, no matter the private carrier.
In other words, the only difference between Medicare supplements plans of the same type is the monthly premium charged by the carrier.
There are several Medicare-approved private insurance companies that offer quality supplemental plans.
The cost of your monthly premium and the portion of your medical expenses a supplemental plan will cover are at stake, so thoroughly comparison shop private insurance companies offering supplemental plans.
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Social Security And Medicare Timing
Many people retire and start Social Security benefits and Medicare benefits at about the same time. Its logical to do that. But its not the only way. It may not be the best way for you.
You can make independent decisions about all three. You can start them years apart. You can start them in any order
Can You Get Private Insurance Instead Of Medicare
If you have Medicare Part A or Part B, insurers generally arent allowed to sell you a traditional individual health insurance plan .
You can purchase individual health insurance if youve never enrolled in Medicare because you think the overall costs are too high. If youre in the unusual situation of paying for Part A premiums, you can also switch to individual health insurance.
If you develop a medical condition before turning 65 that would qualify you for Medicare, such as ESRD, you can decline to purchase Medicare.
If you decide to purchase private insurance once youre eligible for Medicare unless youre continuing the employer-sponsored insurance that qualifies you for a Special Enrollment Period then youll have to pay the costly late enrollment penalty once you do apply.
If youre nearing the age of 65, then its important you start considering your Medicare coverage.
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Working Past 65 Here’s When And Why You Should Enroll In Medicare
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If youre not planning to retire anytime soon but youre about to turn 65, you might be wondering if you should sign up for Medicare. Everyones circumstances are different, but in general, the decision to enroll will depend on the size of your employer and the value youre getting from your workplace health insurance.
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Do I Need To Be On Social Security To Get Medicare Coverage
Many seniors sign up for Social Security prior to securing Medicare coverage but doing so is by no means a requirement.
Q: Do I need to be on Social Security to get Medicare coverage?
A: Millions of seniors rely on Medicare for health benefits in retirement, and depend on Social Security as a key income source. But while the two programs are interrelated, participation in one doesnt necessarily hinge on being signed up for the other.
What If You Worked 10 Years Or Less
Most people will qualify for coverage by paying Medicare and Social Security taxes for 10 years through any combination of employers. Youll need to have spent 10 years doing taxable work to enroll in Medicare Part A for free. If youve worked for less than 10 years in the US, youll need to pay monthly premiums for Medicare Part A.
However, if your spouse who is 62 or older has enough quarterly credits or receives Social Security benefits, then youll still qualify. You may also be able to qualify based on your spouses work record if youre widowed or divorced.
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