Turning 65? What You Need to Know about Medicare

Are you approaching the age of 65? If so, you’re not alone. Thousands of baby boomers are turning 65 each year from now until 2030. And what’s so important about turning 65? This is when you enroll in Medicare, and if you miss the deadline, you may face penalties. That’s why it’s important to understand Medicare, its options, and what you need to sign up for and when. Read on to learn more about Medicare and how AZ Medicare Options can help.

There are a number of different options you need to consider when signing up for Medicare. To break it down, Medicare is made up of four parts as follows:

Part A

Covers Hospital Stays (includes Medigap policies)

Part B

Covers Physician Costs (includes Medigap policies)

Part C

Medicare Advantage – Permits Medicare beneficiaries to receive their medical care (will cover the part A, part B, and part D) from among a number of delivery options.

Part D

Covers Prescription Medications

The Medicare enrollment process starts three months before your 65th birthday and continues for 7 months after your 65th birthday. If you already receive Social Security Benefits, then you will automatically be enrolled in Medicare. Otherwise, you need to sign up for Medicare by calling the Social Security Administration at 800-772-1213 or online at http://www.socialsecurity.gov/medicareonly/. Do this as soon as the enrollment period starts to make sure you are covered when you turn 65 and avoid any penalties.

If you are still employed and have either a union group or employer health insurance policy, you may not need to sign up for Medicare Part B at this time. This depends on whether your employer’s plan is the primary insurer. If not, you will need to sign up for Medicare Plan B. If you don’t have to sign up for Part B, you should still enroll in Part A to help cover any unexpected hospital bills.

Signing up for Medicare Part B is extremely important if you do not have a health plan or that health plan is secondary to Medicare. It’s also important to note that neither COBRA nor VA benefits count as a health insurance plan for Medicare purposes. If you fail to sign up for Part B during the enrollment process, you will be subject to a penalty. The penalty may include your Part B premium going up 10 percent for every 12-month period you could have had Medicare Part B. Also, you will have to wait for the next enrollment period to sign up. The enrollment period is generally from January 1 to March 31 of each calendar year.

To join Medicare Part C, also known as Medicare Advantage, you first need to be enrolled in Medicare Parts A and B. If you choose Part C, it will provide the Part A and B coverage. The Part C plan may also include extra coverage, such as dental, hearing, vision, and health and wellness programs. Most Part C plans also include prescription drug coverage.

If you do not sign up for a Medicare Advantage plan that covers prescription drugs, you’ll need to sign up for Medicare Part D at the same time you enroll in Parts A and B. Keep in mind that for every month you fail to enroll in Part C, your premium will increase by 1 percent. You will be exempt from these penalties, however, if you do not enroll in Part C because you have another drug coverage program through a private insurer. This is referred to as creditable coverage and your insurance carrier will know whether your policy is considered creditable coverage.

After factoring in copayments, deductibles, and coverage exclusions, Medicare only pays for around half of your medical costs. To cover the rest, you can purchase Medigap from a private insurance company. This way, you can be sure that everything is covered when it comes to your health and finances. Medigap is something that the team at AZ Medicare Options can help you understand and purchase.

At AZ Medicare Options, we help you find the right Medicare coverage for your health and financial needs. It’s really that easy. And the best part is it’s FREE. There is absolutely no cost to you. AZ Medicare Options has helped thousands of AZ residents through the maze of Medicare by helping each person understand and easily choose the Medicare options that make sense, both financially and for health in the long-term. The people we help go from being utterly frustrated to confidently choosing Medicare options that they understand. Don’t be left in dark unsure of what Medicare is all about or how it can help you. Instead, be confident and informed. To learn more about our service and the different Medicare Options, call AZ Medicare Options today at 602-326-8992. Our friendly team is standing by to answer all your questions and concerns.