Turning 65 and ready for Medicare
Many birthdays are “big ones.” 21. 30. 40. 50… Most end in zero. But your 65th birthday may be the one (aside from 21) that means the most changes. Will you retire in your birthday month? Looking forward to Social Security payments? And when should you sign up for Medicare?
Fortunately, when it comes to Medicare, you can probably just relax. If you are eligible, the system takes care of things automatically, so you likely do not need to do anything to sign up. But if your spouse is still working and has health insurance, that may impact how things go.
Automatically enrolled and paid
Automatic enrollment works for anyone receiving Railroad Retirement or Social Security for 4 months before their birthday. But for those living in Puerto Rico, only Part A is automatic, so enroll in Part B yourself.
At the beginning of the month you turn 65, in the mail, you should get a Medicare card unless your birthday is on the first of any month. If so, your card comes a month sooner.
Your Medicare taxes, or those of your spouse, paid over 10 or more years of your working life covers the premiums for Part A. That coverage includes hospitalization. For doctor and outpatient coverage, you need Part B, which requires you pay a monthly premium based on your income. Social Security Administration automatically deducts this amount from your government pension. So, don’t worry about your premiums going unpaid or missing out on coverage. It’s all done for you.
If your spouse is retiring with you or otherwise does not carry health insurance from an employer, your birthday is likely the best time to enroll (or be enrolled automatically.) If your spouse still works, and their employer’s health insurance covers you, it may be best to hold off on enrolling in Part B so you don’t have to pay those premiums. You can mail in your enrollment card for Part B when your spouse’s coverage is about to expire. The wrong decision could mean coverage gaps and penalties for your late enrollment. Contact us for professional advice on Medicare and healthcare gap insurance.
Manual sign up for Medicare
If you are not automatically enrolled for Part A (or Part B) coverage, you need to sign up yourself. Since most Americans are over 65 before they receive full SS benefits, you may not have signed up for Social Security, so you aren’t automatically enrolled.
But should you sign up during that initial enrollment period? Usually, yes. That 7-month Initial Enrollment Period (IEP) is usually the best time. The months for your IEP include your birthday month and the 3 months both before and afterwards. A birthday on the first day of any month shifts the dates forward a month.
If either you or your spouse works and has health insurance from that employer, you could wait. But if you have other health insurance from another source, not a current employer, sign up during this IEP.
Conclusion
Many aspects of your situation may impact what’s best for your healthcare insurance. Fortunately, you can contact us to help you choose the right coverage and make the decisions Medicare right for you. Reach out today.
