As you approach your 65th birthday, you may be wondering if you automatically become eligible for Medicare. Understanding how and when to sign up for Medicare is essential to ensure you don’t miss out on important benefits and avoid penalties. At Overton Agency, we’re here to help you navigate the process. Keep reading to learn more, and feel free to contact us at 501-881-2050 if you have any questions.
Medicare at 65: What You Need to Know
Turning 65 is a milestone, and with it comes Medicare eligibility. Here’s what you need to know as you approach this age to make sure you’re fully covered:
- Medicare has different parts, such as Part A (hospital insurance) and Part B (medical insurance).
- To ensure Medicare coverage starts when you need it, you should be aware of your Initial Enrollment Period.
Do I Automatically Get Medicare When I Turn 65?
Whether you automatically get Medicare when you turn 65 depends on certain factors:
- If you are already receiving Social Security benefits or Railroad Retirement benefits, you will be automatically enrolled in Medicare Part A and Part B the month you turn 65.
- If you’re not yet receiving these benefits, you will need to sign up for Medicare manually.
How to Sign Up for Medicare
If you need to enroll manually, here are the steps:
- Visit your local Social Security office or their website.
- Sign up for Social Security benefits, if you haven’t already.
- Enroll in Medicare Part A and Part B during your Initial Enrollment Period — which starts three months before and ends three months after the month you turn 65.
Medicare Part B: Do You Need It?
While Medicare Part A is typically premium-free if you or your spouse paid Medicare taxes while working, Part B has a monthly premium. Here is what you should consider:
- If you have other health insurance, you might delay Part B.
- Delaying without other health coverage can lead to late enrollment penalties.
Late Enrollment Penalties
Delaying your enrollment in Medicare Part B or Part D can result in penalties:
- The Part B penalty is an extra 10% for each full 12-month period you could have had Part B but didn’t sign up for it.
- The Part D penalty is 1% of the “national base beneficiary premium” times the number of full, uncovered months you didn’t have Part D or other creditable prescription drug coverage.
Medicare Eligibility Through Social Security or Railroad Retirement Board
Those receiving disability benefits from Social Security or the Railroad Retirement Board are automatically enrolled in Medicare after 24 months. There are exceptions for certain conditions like Amyotrophic Lateral Sclerosis, where automatic enrollment happens sooner.
Medicare Coverage Options: Parts A, B, C, and D
When enrolling in Medicare, you have options:
- Part A: Covers hospital stays, nursing facility care, hospice, and some home health services.
- Part B: Covers doctor visits, outpatient care, medical supplies, and preventive services.
- Part C: Also known as Medicare Advantage — an alternative to Original Medicare offered by private companies.
- Part D: Prescription drug coverage.
Preparing Months Before You Turn 65
It is beneficial to start planning for Medicare months before you turn 65:
- Research what Medicare does and does not cover to avoid surprises.
- Check with your current health insurance to see how it works with Medicare.
- Set reminders for important dates in your Initial Enrollment Period.
General Enrollment Period
If you miss your Initial Enrollment Period, your next chance to enroll is during the General Enrollment Period from January 1 to March 31 each year. Coverage starts July 1, but you may incur late enrollment penalties.
We’re Here to Help
Turning 65 and enrolling in Medicare can feel overwhelming, but you don’t have to go through it alone. At Overton Agency, we are here to assist you every step of the way. Call us today at 501-881-2050 to schedule a consultation and ensure you have the coverage you need as you enter this important phase of your life.
By planning ahead and understanding your Medicare options, you can enjoy your retirement with the peace of mind that your health insurance needs are covered.
