What Happens After I Register For Medicare Online
Once you have submitted your application, it will be reviewed by Medicare to ensure all the information is accurate and complete. You should double-check your contact information to make sure it is correct. This is important to ensure prompt delivery of your Identification Card, as well as in the event Medicare needs to contact you about your enrollment.
After your application is received and processed, a letter will be mailed to you with the decision. If you encounter any questions or problems during the process, you can always contact Social Security for assistance.
What Can I Do Next
Generally, youre first eligible to sign up for Part A and Part B starting 3 months before you turn 65 and ending 3 months after the month you turn 65.
Because the company has less than 20 employees, your job-based coverage might not pay for health services if you dont have both Part A and Part B.
B Late Enrollment Penalty
If you delay enrollment in Part B and don’t have coverage from a current employer , you’ll be subject to a late penalty when you eventually enroll in Part B. For each 12-month period that you were eligible for Part B but not enrolled, the penalty is an extra 10% added to the Part B premiums. And you’ll pay this penalty for as long as you have Part Bwhich generally means for the rest of your life.
In 2020, most Medicare Part B enrollees pay $144.60/month. So a person who is now enrolled but had delayed their enrollment in Medicare Part B by 40 months would be paying an extra 30% in addition to those premiums . That means they’d be paying roughly an extra $43/month for their Part B coverage, for a total of about $188/month.
Part B premiums generally change each year. Sometimes they stay the same from one year to the next, but the general trend has been upwards over time. So the part B penalty will generally also increase from one year to the next. If you’re paying 10% or 30% or 50% more than the standard rates, the dollar amount of that penalty will increase as the standard premiums increase over time.
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Is It Mandatory To Have Medicare Part B
While Part B is optional, penalties can be high if you wait too long. Part B covers physician visits, lab tests, outpatient surgeries, and even Durable Medical Equipment.
If you choose to delay Part B you can pay up to 10% above the standard premium for a period of every 12 months that you dont carry coverage. Also, the more time that passes the higher the penalty.
Do You Have To Be On Medicare At 65
When you turn 65 years old, youâre eligible to sign up for Medicare.
Original Medicare is made up of 2 main parts: Part A and Part B .
As long as youâve worked at least 10 years and paid Medicare taxes, Medicare Part A is actually free to have, meaning that you donât have a monthly premium to pay. Thereâs really no downside to having Part A when you turn 65.
Do you have to have Part A when you turn 65? No. Is there any downside to having Part A when you turn 65? No. Thatâs why you donât actually have to sign up for Part A.
Three months before you turn 65, youâll be mailed your Medicare card, and youâre automatically enrolled in Part A. Youâll also be automatically enrolled in Part B unless you send the card back explaining that you donât want it.
Which brings us to our next question â is Medicare Part B mandatory at age 65?
Our team of licensed agents can help you determine which route would save you the most money, so if youâre not sure, be assured that we can help. Call us any time at 833-801-7999.
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Example : You Are Contributing To Your Group Health Insurance Plan
In almost all cases, you can save money by switching to Medicare with a Medigap plan if youâre the one contributing to your group health insurance plan.
Health insurance premiums are sky-high, with some plans costing upwards of $800 per month. Medicareâs monthly premium is nowhere close to that, and you can even add on a Medicare Supplement with no chance of reaching that kind of premium.
In sum, you can have much better coverage for a fraction of the cost if youâre paying for your group health insurance and are over 65.
If youâd like a Medicare specialist to help you one-on-one, schedule a free Medicare planner with one of our licensed agents.
D Late Enrollment Penalty
The Part D late enrollment penalty is similar to the Part B late enrollment penalty, in that you have to keep paying it for as long as you have Part D coverage. But it’s calculated a little differently. For each month that you were eligible but didn’t enroll , you’ll pay an extra 1% of the national base beneficiary amount.
In 2020, the national base beneficiary amount is $32.74/month. Medicare Part D premiums vary significantly from one plan to another, but the penalty amount isn’t based on a percentage of your specific planit’s based instead on a percentage of the national base beneficiary amount. Just as with other parts of Medicare, Part D premiums change from one year to the next, and the national base beneficiary amount generally increases over time.
So a person who delayed Medicare Part D enrollment by 27 months would be paying an extra $8.84/month , on top of their Part D plan’s monthly premium in 2020. A person who had delayed their Part D enrollment by 52 months would be paying an extra $17.02/month. As time goes by, that amount could increase if the national base beneficiary amount increases . People subject to the Part D late enrollment penalty can pick from among several plans, with varying premiums. But the Part D penalty will continue to be added to their premiums for as long as they have Part D coverage.
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If The Employer Has Fewer Than 20 Employees
The laws that prohibit large insurers from requiring Medicare-eligible employees to drop the employer plan and sign up for Medicare do not apply to companies and organizations that employ fewer than 20 people. In this situation, the employer decides.
If the employer does require you to enroll in Medicare, then Medicare automatically becomes primary and the employer plan provides secondary coverage. In other words, Medicare settles your medical bills first, and the group plan only pays for services that it covers but Medicare doesnt. Therefore, if you fail to sign up for Medicare when required, you will essentially be left with no coverage.
Its therefore extremely important to ask the employer whether you are required to sign up for Medicare when you turn 65 or receive Medicare on the basis of disability. If so, find out exactly how the employer plan will fit in with Medicare. If not, ask for that decision in writing.
Note that in this situation, signing up for Medicare Part B when you also have employer insurance will not jeopardize your chances of buying Medigap supplemental insurance after the employment ends. When Medicare is primary to the employer plan, you have the right to buy Medigap with full federal protections if you do so within 63 days of the employer coverage ending.
Is It Mandatory To Sign Up For Medicare At 65
Many people who are still working wonder whether it is required to enroll in Medicare when turning 65. It is important to know where you stand as failing to meet certain enrollment requirements can result in penalties down the road.
Whether you are required to enroll in Medicare at 65 will depend on your individual circumstances. In this guide, youll learn in which situations you are required to enroll and which you are not.
Applying For Medicare By Phone
Just like applying online, applying for Medicare by phone is easy. You can contact a representative at 1-800-772-1213.
Depending on the volume of calls, there might be a wait time. If the wait time is above average, you can schedule an appointment to have a representative call you.
The only downfall with applying for Medicare by phone is that it can take longer compared to online. If youre ahead of the game and start well before your birthday, then applying by phone shouldnt cause any issues. If you do not wish to apply online or by phone, you can choose to do so in person.
When Your Coverage Starts
The date your coverage starts depends on which month you sign up during your Initial Enrollment Period. Coverage always starts on the first of the month.
If you qualify for Premium-free Part A: Your Part A coverage starts the month you turn 65.
Part B : Coverage starts based on the month you sign up:
If you sign up:
1 month after you turn 65
2 months after you sign up
2 or 3 months after you turn 65
3 months after you sign up
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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.
What Is The Medicare Part D Late
If youve gone 63 consecutive days without creditable prescription drug coverage, either because you didnt enroll when you were first eligible or because you lost your creditable coverage and didnt get new coverage in time, then you may have to pay a late-enrollment penalty when you do enroll into Medicare Part D.
The Medicare Part D late-enrollment penalty is added to the premium of the Part D Prescription Drug Plan you enroll into. Your Medicare Prescription Drug Plan determines this penalty by first calculating the number of uncovered months you were eligible for Medicare Part D, but didnt enroll under Part D or have creditable coverage. Your Medicare Prescription Drug Plan will then ask you if you had creditable prescription drug coverage during this time. If you didnt have creditable prescription drug coverage for 63 or more days in a row after you were first eligible, the Medicare Prescription Drug Plan must report the number of uncovered months to Medicare.
For example, lets say you disenrolled from your Medicare Prescription Drug Plan effective February 28, 2021, and then decided to enroll into another Medicare Prescription Drug Plan during the Annual Election Period, with an effective date of January 1, 2022. This means you didnt have creditable prescription drug coverage from March 2021 through December 2021, which adds up to 10 uncovered months.
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Have Aca/marketplace Coverage At Age 65
Youre an easy one. Medicare is going to be the next step for you as you turn 65 years old if you have Marketplace coverage currently.
If you are receiving a subsidy on that current plan, it will stop the month that you turn 65 years old. You will then start paying Medicare Part B premiums. If you do not receive a subsidy? Youre typically the very happy camper when you sign up for Medicares coverage and the ancillary products. Youve saved money and have better coverage.
The Texas Medicare Agency
Knowing how Medicare works can be a complicated process. Coverage 2 Care helps you understand your Medicare coverage options so you can be confident about your choice. Our licensed agents will help you find the best plan for you while saving money in the process.
Contact us today to learn how our Medicare services can get you the benefits you deserve.
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If You Are Still Working
Many people are no longer employed at age 65 and rush to enroll in Medicare the moment they are eligible. But, if youre still working at 65 and you have health insurance through your employer, you may not need to enroll in Medicare right away. Whether you need to sign up for Medicare when youre first eligible will depend on the size of your employer.
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- If you do not want to use Medicare, you can opt out, but you may lose other benefits.
- People who decline Medicare coverage initially may have to pay a penalty if they decide to enroll in Medicare later.
Medicare is a public health insurance program designed for individuals age 65 and over and people with disabilities. The program covers hospitalization and other medical costs at free or reduced rates.
The hospitalization portion, Medicare Part A, usually begins automatically at age 65. Other Medicare benefits require you to enroll.
If you keep working beyond age 65, you may have health insurance through your employer or have purchased a plan outside of Medicare. In this case, you may choose to refuse Medicare coverage. However, delaying enrollment can add extra costs or penalties down the road.
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Your First Chance To Sign Up
Generally, when you turn 65. This is called your Initial Enrollment Period. It lasts for 7 months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65.
Avoid the penaltyIf you miss your 7-month Initial Enrollment Period, you may have to wait to sign up and pay a monthly late enrollment penalty for as long as you have Part B coverage. The penalty goes up the longer you wait. You may also have to pay a penalty if you have to pay a Part A premium, also called Premium-Part A.
How To Defer Medicare
In most cases, you or your spouse must be actively working for an employer that provides your current health insurance in order to delay Medicare enrollment and qualify for a special enrollment period later.
Keep in mind that COBRA and retiree benefits from a current or former employer do not count as active creditable coverage.
You can defer Medicare enrollment until your workplace health insurance ends or you leave your job whichever comes first.
When your workplace coverage stops, youll qualify for a special enrollment period of up to eight months when you can sign up for Medicare Part B without facing late enrollment penalties.
There are other times you can change your Medicare coverage, too, including during the general enrollment period and open enrollment period but you may face a penalty if you wait until one of these enrollment periods.
Its best to speak with your workplace benefits administrator if youre still working and want to delay Medicare until retirement.
Your workplace human resources department can help you determine whether your current health insurance qualifies as creditable coverage and if it makes sense to defer Medicare enrollment at 65.
There is another limited situation when you can delay signing up for Medicare Part A and/or Part B. If you live overseas when you turn 65 and dont qualify for premium-free Part A, youll have two months to sign up for Medicare once you return to the United States.
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When Do I Apply For Medicare If Im Still Working At 65
What if youre still working when you hit 65? If you qualify for Medicare, but youre not getting Social Security benefits yet, you usually dont get enrolled automatically in Medicare.
Some people decide to:
- Enroll in Medicare Part A as soon as theyre eligible. Even if your employer plan has hospital coverage, Part A is premium-free for most people. If your employer plan has hospital coverage, and you have a hospital stay, your plan and Medicare Part A will coordinate benefits to work out payment of your hospital costs.
- Delay enrollment in Medicare Part B. Theres typically a monthly Part B premium, and if youre covered by an employer plan for now, you may be able to save money by delaying enrollment in Part B.
But youll want to make sure you sign up for Medicare Part B when your employer-based coverage ends. Theres a Part B late enrollment penalty, but you can generally avoid it if you sign up for Part B during a Special Enrollment Period when your other coverage stops.
Its important to be sure about what youre doing so that you can avoid Medicare late enrollment penalties. Contact your employer- or union-based health plan administrator with any questions you have to help ensure a smooth transition to Medicare coverage.
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