Today, we’re talking about how you enroll in Medicare Parts A and B. There are three different ways that you can enroll in Medicare Parts A and B. All three of them are handled by Social Security.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
The first is through an online enrollment process which you will find at ssa.gov/benefits/medicare. You can also call Social Security at 1-800-772-1213 and enroll over the phone, or you can make an appointment and visit your local Social Security office to enroll in Medicare Parts A and B.
Taking Social Security at age 65?
If you applied to start your Social Security benefits at (or before) age 65, Social Security will automatically enroll you in Medicare Parts A and B with an effective date of the first day of the month in which you turn 65. The exception to that is if your birthday is the first day of the month. In that case, your effective date will be the first day of the previous month. Your card should arrive in the mail one to two months before the effective date.
Medicare Parts C and D Enrollment
Medicare Parts C and D, otherwise known as Medicare Advantage plans and Medicare Part D prescription drug plans, along with Medicare Supplements, are not handled by Social Security. These are offered by private insurance companies.
Once you know your Medicare Parts A and B effective dates, it’s a good time to look at your options for these other Medicare plans, and here’s a good place to start.
Licensed, experienced brokers can help you sort out which plan would be a good fit for you in your unique situation.
When should you enroll?
A related question to the how of enrolling in Medicare is when. When should you enroll in Medicare?
This depends on your situation. One important note, Medicare expects you to know when to enroll. All the information is publicly available on the Medicare website, but Medicare will not contact you to tell you that it’s time for you to enroll.
Initial Enrollment Period
If you did not have Medicare before age 65 due to a qualifying disability, you will first be able to enroll in Medicare during the seven months surrounding your 65th birthday: three months before your birth month, the month of your birth, and three months after your birth month. This is your Initial Enrollment Period for Medicare. If you enroll during this period you will not have to worry about any late enrollment penalties.
Will Medicare be your primary insurance?
If you are leaving other health insurance, and Medicare will be your primary insurance starting the month that you turn 65, you will want to apply for Medicare in the months before your birth month. If you apply after your birth month, your start date for Medicare will be later, and you could be without coverage for a time.
If you have no other coverage and do not enroll in Medicare during your Initial Enrollment Period, you will have options to enroll later, but you will have to pay late enrollment penalties.
What if you plan to keep working after age 65 and stay on employer group health insurance?
If you work for a small business with fewer than 20 employees, you may need to enroll in Medicare Parts A and B at age 65 before your group insurance will continue to pay claims.
If you work for an employer with more than 20 employees, or if you are covered under your spouse’s group plan and your spouse’s company has more than 20 employees, you can enroll in Medicare Part A but delay Medicare Part B, as long as your group insurance is considered creditable coverage by Medicare. Your benefits manager should be able to tell you whether you have creditable coverage.
Declining Medicare Part B
If you are sent a Medicare card with Parts A and B effective dates on it and you want to decline Part B, follow the instructions that came in the packet with the card from Medicare and send that card back to decline Part B.
Declining Part B can be very important, and here’s why: Medicare Part B has a premium cost that you pay every month. Even if you worked 40 quarters and qualify for Medicare Part A at no premium, you will have to pay for Medicare Part B. There is no reason to pay for Part B until you are ready to leave your group coverage, which likely duplicates Part B’s outpatient coverage.
Also, and this is the really important reason, the first six months that you are both age 65 or older and on Medicare Part B is your Medicare Supplement Open Enrollment Period. During that time, you can purchase any Medicare Supplement sold in the state without having to answer health questions. You definitely want to preserve this open enrollment period until you are ready to use it.
Compare Employer Group Insurance Costs with Medicare Plans
If you are going to continue working and have the option to stay on your employer group health plan, it’s still a good idea to compare whether that coverage or Medicare would be a more cost effective route for you.
We’re happy to help you go through your current benefits and compare those to Medicare plans available in the area to see which would be a better fit in your situation.
Health Savings Accounts (HSAs) and Medicare
One note for those in high deductible group health plans: if you have a Health Savings Account, you will no longer be able to make contributions into that account once you enroll in Medicare. That’s another issue to take into consideration when deciding what to do about your coverage.
If you have questions or would like assistance with figuring out the best time to enroll, please feel free to contact our office at 877-312-1414.
We can answer your questions and see that you are correctly enrolled in Medicare Parts A and B and the plans offered by private insurance companies that help cover the costs that Medicare was not designed to cover.
I invite you to visit bcmwi.com/freeconsultation to set up your free, no obligation Medicare plan consultation with a licensed, experienced broker today.
Leave a Reply