Essential Things to Know Before Signing Up for Medicare
Are you approaching the age of 65 and wondering about Medicare? Now it’s a perfect time to sign up for Medicare. But before doing so, there are several things that you need to learn. Medicare enrollment can be a complex topic to navigate, but it doesn’t have to be.
In this blog post, we’ll break down the four things you can’t afford to miss out on before signing up for Medicare. From understanding the different parts of Medicare to deciding between original Medicare and a Medicare Advantage Plan, we’ve got you covered. Read on.
The Main Four Parts of Medicare
Medicare has four main parts: A, B, C, and D. Part A deals coverage for inpatient hospital care, hospice care, and some home health care. If you have paid Medicare taxes for at least 10 years, Part A will be free for you. However, if you don’t qualify for premium-free Part A coverage based on your career history, you may have to pay a monthly premium.
Part B deals with outpatient medical services coverage, such as doctor’s visits and preventive care. Meanwhile, Part C, also known as the Medicare Advantage Plan, provides all-in-one coverage by combining Parts A and B with additional benefits like vision or dental coverage. Part D offers prescription drug coverage that can help reduce out-of-pocket medical expenses. Each Part of Medicare has different premiums and deductibles that are important to consider when choosing the right plan for you.
Original Medicare Vs. Medicare Advantage Plan
When enrolling in Medicare, you have two main options: Original Medicare and a Medicare Advantage Plan. It’d be such a benefit for you to understand the differences between these two plans so you know which one is the best plan that suits your needs.
Original Medicare consists of Part A (hospital insurance) and Part B (medical insurance). With this plan, you can visit any doctor or hospital that accepts Medicare. You will be responsible for paying deductibles, coinsurance, and copayments out of pocket.
On the other hand, a Medicare Advantage Plan offers all the same benefits as Original Medicare. Still, it may also include additional coverage such as prescription drug coverage, dental care, vision care, and hearing aids, among others. These plans may require you to choose doctors within their network or pay higher costs if choosing outside their network.
Automatic Enrollment as a Social Security Member
When you turn 65, you will get automatic enrollment in Medicare Part A and B if you already receive Social Security benefits. However, if you are not yet receiving benefits, signing up for both programs during the Initial Enrollment Period is important.
Automatic enrollment only applies to Original Medicare (Part A and B), so if you want additional coverage like prescription drug plans or supplemental policies, such as a Medigap policy, those must be purchased separately. It’s also worth noting that automatic enrollment does not apply to Medicare Advantage Plans.
What to Do If You’re Still Working at 65
If you’re still working at 65, it’s important to consider how your employment status will affect your Medicare coverage. Firstly, if you have employer-sponsored health coverage through your job and are happy with it, you can delay enrolling in Medicare without penalty until you retire or lose that coverage.
However, if your employer has fewer than 20 employees, Medicare becomes your primary insurance once you turn 65. In this case, enrolling in Original Medicare (Part A and Part B) may benefit you even if you continue working.
In fact, if you decide to enroll in a Medicare Advantage plan while still employed, ensure the plan is compatible with your employer’s coverage. Some plans require participants to drop their employer’s health insurance and switch over completely.
