When and how to sign up for Medicare Insurance
In this video I will show you how to sign up for Medicare, when to sign up and who should sign up for Medicare Part B. The reason I’m doing this video is many times I will talk to folks that when they turned 65 they made some mistakes. Costly mistakes. So to make sure you do this the correct way I will go over who should sign up for Medicare Part B. Not everyone needs to do this yet. What is the easiest way to sign up and when should you.
As you probably know Medicare is made up of 4 parts. There's Part A, Part B, Part C and Part D. Were going to talk about original Medicare which is Parts A and B. Part A is hospitalization and that is automatic and free to us. You do not need to sign up for Part A.
Part B is the one you need to be concerned about. This, you may or may not need to sign up. Part B covers all medical expenses outside of the hospital. There is a cost to Part B and that is what I will go over now.
Part B is the one you need to be concerned about. This, you may or may not need to sign up. Part B covers all medical expenses outside of the hospital. There is a cost to Part B and that is what I will go over now.
Cost of Medicare Part B in 2018
This chart below gives a break down on what Part B will cost you. Majority of you will fall within the first row. If your income is $85,000 or less then you will pay $134/month. Medicare will exam your tax return from 2 years previous and that will determine your Medicare Part B premium. If you are on Social Security your Part B premium will be automatically deductible from your benefits check. If you are not taking Social Security yet then Medicare will bill you quarterly for your premium.
This is the Medicare Handbook. Everyone will get a copy every year in the fall. If you do not have on you can go to my web site and download your own copy. Medicare handbook.
Turning 65 and already collecting Social Security or Railroad Retirement Benefits
If you are already getting social security or railroad retirement benefits you do not have to sign up. That's it, your done. Look over the rest of the article but now I would suggest you go and watch some of my other videos Best Medicare Supplement Plan 2018 Plans F, G and N All my videos When you are already getting a social security check Medicare will send you a notice on when your benefits will start. About three months before your start date, you will get your Medicare card in the mail. Below is what the new card looks like.
Check it over and make sure everything is correct. If you have not received your card go on line to the Social Security web site at https://www.ssa.gov/benefits/retirement/ or call them at 1-800-772-1213.
If your not receiving any benefits yet then, there are several things you need to do. Medicare Part A is automatic. As long as you or your spouse have the required number of quarters paying the Medicare tax then you will go on Part A at age 65.
If your not receiving any benefits yet then, there are several things you need to do. Medicare Part A is automatic. As long as you or your spouse have the required number of quarters paying the Medicare tax then you will go on Part A at age 65.
When should you sign up
When you are turning 65 you have a 7 month window in which to sign up. In the calendar below lets say your birthday is August 6. You can sign up 3 months before August, during your birthday month and 3 months after August. If you sign up say in December then you will have to go to the local Social Security office to sign up and then there will be a penalty.
If your birthday is on the first of the month as an example August 1. Then everything gets shifted one month previous. So with an August 1 birthday you will start Medicare on July 1.
If your birthday is on the first of the month as an example August 1. Then everything gets shifted one month previous. So with an August 1 birthday you will start Medicare on July 1.
How to sign up
When your turning 65, the easiest way to sign up is on the Social Security web site. Go to enroll. If you need to, you can go to your local Social Security office and enroll there. Do this as soon as you can. Social Security offices can get very busy and you may not get an appointment for several months.
If you are past 65 and just signing up for Part B you will have to go to the local office and show proof that you had creditable coverage since turning 65. You can get the required documents from your HR department or from the insurance company. To find your local Social Security office go online here local office
What if I’m still working?
This section is very important so please take notice. If your still working after age 65 signing up for Medicare has some special rules.
If your employer has 20 or less employees then you have to sign up for Medicare Part B, but be very careful. If you are paying for your group coverage the cost may be higher than if you dropped your group plan and purchased a Medicare Supplement. Part B on average will cost you $134 per month and a good Medicare Supplement on average will cost $120 per month. Is that less than the group coverage? Call me to make sure your are doing what is your best interest.
The other thing to consider is if you keep your group plan and when you finally retire your choice on which Medicare Supplement you select is limited to a couple plans. The best course of action would be to call me and discuss your situation.
If you work for a large company, more than 20 employees and have creditable coverage then you DO NOT want to sign up for Medicare Part B. When you finally retire you will have a special enrollment period in which to enroll in Part B and purchase a Medicare Supplement. This Special Enrollment Period last for 8 months from the day you loose your health coverage or you stop working. You must enroll in Part B during this enrollment period.
If your employer has 20 or less employees then you have to sign up for Medicare Part B, but be very careful. If you are paying for your group coverage the cost may be higher than if you dropped your group plan and purchased a Medicare Supplement. Part B on average will cost you $134 per month and a good Medicare Supplement on average will cost $120 per month. Is that less than the group coverage? Call me to make sure your are doing what is your best interest.
The other thing to consider is if you keep your group plan and when you finally retire your choice on which Medicare Supplement you select is limited to a couple plans. The best course of action would be to call me and discuss your situation.
If you work for a large company, more than 20 employees and have creditable coverage then you DO NOT want to sign up for Medicare Part B. When you finally retire you will have a special enrollment period in which to enroll in Part B and purchase a Medicare Supplement. This Special Enrollment Period last for 8 months from the day you loose your health coverage or you stop working. You must enroll in Part B during this enrollment period.
Cobra
Cobra does not qualify as creditable coverage. If you retire or loose your health coverage do not stay on Cobra. Enroll in Part B and purchase a Medicare Supplement when you are eligible.
HSA Account
If you have an HSA account when you go on Medicare you must stop making contributions. You are allowed to use your funds to pay for medical expenses and some insurance policies, but DO NOT contribute to your account.