You should set up Part B to start the very next day after you lose your employer coverage. For example, if you know you will be retiring on June 30 th, you should enroll in Medicare Parts A and/or B to begin on July 1 st. When you activate your Part B, you will activate your 6-month Medicare supplement open enrollment window.
Full Answer
When can I sign up for Medicare Part B?
You can only sign up for Part B (or Part A if you have to pay a premium for it) at certain times. Learn about Part A & Part B sign up periods. Once you’re eligible to sign up for Medicare (usually 3 months before you turn 65), you have 2 options:
What happens after I sign up for Medicare?
After you sign up and get your Medicare Number, you can create your secure Medicare account. You can also join a plan or buy supplemental insurance to get more coverage. You can only sign up for Part B (or Part A if you have to pay a premium for it) at certain times. Learn about Part A & Part B sign up periods.
What is Medicare Part B and how does it work?
Once you retire and have no access to other health coverage, Medicare becomes your primary insurance. Part A pays for your room and board in the hospital. Part B covers most of the rest. Enrolling in Part B when Medicare is primary will help you avoid unexpected medical bills. The Medicare definition for Part B is “outpatient coverage.”
Do you need Medicare Part B to get supplemental coverage?
You Need Part B to Be Eligible for Supplemental Coverage. Medigap plans do not replace Part B. They pay secondary to Part B. Part B works together with your Medigap plan to provide you full coverage. This means you must be enrolled in Part B before you are even eligible to apply for a Medicare supplement.
How long does it take for Medicare B to be approved?
You can also call the Social Security Administration at 1-800-772-1213 or go to your local Social Security office. It takes about 45 to 90 days to receive your acceptance letter after submitting your Medicare application.
Does Medicare automatically enroll you in Part B?
Medicare will enroll you in Part B automatically. Your Medicare card will be mailed to you about 3 months before your 65th birthday. If you're not getting disability benefits and Medicare when you turn 65, you'll need to call or visit your local Social Security office, or call Social Security at 1-800-772-1213.
Does Medicare Part B have to start on the first of the month?
Part B (Medical Insurance) Generally, you're first eligible to sign up for Part A and Part B starting 3 months before you turn 65 and ending 3 months after the month you turn 65. (You may be eligible for Medicare earlier, if you get disability benefits from Social Security or the Railroad Retirement Board.)
Do you have to enroll in Medicare Part B every year?
Do You Need to Renew Medicare Part B every year? As long as you pay the Medicare Part B medical insurance premiums, you'll continue to have the coverage. The premium is subtracted monthly from most people's Social Security payments. If you don't get Social Security, you'll get a bill.
Can I get Medicare Part B for free?
While Medicare Part A – which covers hospital care – is free for most enrollees, Part B – which covers doctor visits, diagnostics, and preventive care – charges participants a premium. Those premiums are a burden for many seniors, but here's how you can pay less for them.
What day of the month does a Medicare Advantage plan take effect?
Coverage under a Medicare Advantage plan will begin the first day of the month after you enroll. Example: Judy's last day of work is July 1 and her group health plan ends July 31.
Does Medicare start on your birthday or the month of your birthday?
Medicare has an Initial Enrollment Period for those turning 65. To ensure that coverage starts on the first day of the birthday month, an individual turning 65 must enroll in the first three months of the Initial Enrollment Period.
How do I change my Medicare Part B effective date?
If changing your initial month of Part B coverage is possible in your case, you'll likely need to submit a new form CMS-40B (https://www.cms.gov/cms40b-application-enrollment-part-b) along with any required documentation. You should probably first contact Social Security to see what options are available to you.
Your first chance to sign up (Initial Enrollment Period)
Generally, when you turn 65. This is called your Initial Enrollment Period. It lasts for 7 months, starting 3 months before you turn 65, and ending 3 months after the month you turn 65.
Between January 1-March 31 each year (General Enrollment Period)
You can sign up between January 1-March 31 each year. This is called the General Enrollment Period. Your coverage starts July 1. You might pay a monthly late enrollment penalty, if you don’t qualify for a Special Enrollment Period.
Special Situations (Special Enrollment Period)
There are certain situations when you can sign up for Part B (and Premium-Part A) during a Special Enrollment Period without paying a late enrollment penalty. A Special Enrollment Period is only available for a limited time.
Joining a plan
A type of Medicare-approved health plan from a private company that you can choose to cover most of your Part A and Part B benefits instead of Original Medicare. It usually also includes drug coverage (Part D).
Answer a few questions to find out
These questions don’t apply if you have End-Stage Renal Disease (ESRD).
Do you have health insurance now?
Are you or your spouse still working for the employer that provides your health insurance coverage?
When do you have to be on Medicare before you can get Medicare?
Individuals already receiving Social Security or RRB benefits at least 4 months before being eligible for Medicare and residing in the United States (except residents of Puerto Rico) are automatically enrolled in both premium-free Part A and Part B.
How long does it take to get Medicare if you are 65?
For someone under age 65 who becomes entitled to Medicare based on disability, entitlement begins with the 25 th month of disability benefit entitlement.
How long do you have to be on Medicare if you are disabled?
Disabled individuals are automatically enrolled in Medicare Part A and Part B after they have received disability benefits from Social Security for 24 months. NOTE: In most cases, if someone does not enroll in Part B or premium Part A when first eligible, they will have to pay a late enrollment penalty.
What is the income related monthly adjustment amount for Medicare?
Individuals with income greater than $85,000 and married couples with income greater than $170,000 must pay a higher premium for Part B and an extra amount for Part D coverage in addition to their Part D plan premium. This additional amount is called income-related monthly adjustment amount. Less than 5 percent of people with Medicare are affected, so most people will not pay a higher premium.
What happens if you don't enroll in Part A?
If an individual did not enroll in premium Part A when first eligible, they may have to pay a higher monthly premium if they decide to enroll later. The monthly premium for Part A may increase up to 10%. The individual will have to pay the higher premium for twice the number of years the individual could have had Part A, but did not sign up.
How long does Medicare take to pay for disability?
A person who is entitled to monthly Social Security or Railroad Retirement Board (RRB) benefits on the basis of disability is automatically entitled to Part A after receiving disability benefits for 24 months.
What is MEC in Medicare?
Medicare and Minimum Essential Coverage (MEC) Medicare Part A counts as minimum essential coverage and satisfies the law that requires people to have health coverage. For additional information about minimum essential coverage (MEC) for people with Medicare, go to our Medicare & Marketplace page.
Check when to sign up
Answer a few questions to find out when you can sign up for Part A and Part B based on your situation.
When coverage starts
The date your Part A and Part B coverage will start depends on when you sign up.
How long do you have to enroll in Part B if you retire?
When you retire and lose your employer coverage, you’ll be given a 8-month Special Enrollment Period to enroll in Part B without any late penalty.
What happens if you opt out of Part B?
Be aware that if you opt out of Part B and then later decide to join, you will pay a Part B late penalty. You’ll also need to wait until the next General Enrollment Period to enroll, which means there could be a delay before your coverage becomes active. In my opinion, most Veterans should sign up for Part B.
How much does Medicare pay for outpatients?
Your healthcare providers will bill Medicare, and Part B will then pay 80% of your outpatient expenses after your small deductible. Medicare then sends the remainder of that bill to your Medigap plan to pay the other 20%. The same goes for Medicare Advantage plans.
How much is Part B insurance?
Most people delay Part B in this scenario. Your employer plan likely already provides good outpatient coverage. Part B costs at least $148.50/month for new enrollees in 2020.
Does Medigap replace Part B?
Medigap plans do not replace Part B. They pay secondary to Part B. Part B works together with your Medigap plan to provide you full coverage. This means you must be enrolled in Part B before you are even eligible to apply for a Medicare supplement.
Do you have to be enrolled in Part B for Medicaid?
When you are 65 or older and enrolled in Medicaid. All of these scenarios require you to be enrolled in Part B. Without it, you would be responsible for the first 80% of all outpatient charges. Even worse, your secondary coverage may not pay at all if you are not actively enrolled in Part B as your primary coverage.
Do you need Part B before you can enroll in Medigap?
Conclusion. To recap the important points in this article, most people need Part B at some point. When you enroll will depend on what other coverage you currently have when you turn 65. Also, Part B is not a supplement. You need Part B before you can enroll in Medigap or a Medicare Advantage plan.
Signing up for Medicare might make sense even if you have private insurance
Jeffrey M. Green has over 40 years of experience in the financial industry. He has written dozens of articles on investing, stocks, ETFs, asset management, cryptocurrency, insurance, and more.
How Medicare Works
Before diving into how Medicare works with your existing health coverage, it’s helpful to understand how it works on its own. Medicare has four main parts: A, B, C, and D. You can also purchase Medicare supplement insurance, known as Medigap.
Medicare Enrollment Periods
Medicare has a few enrollment periods, but the initial enrollment period may be the most important. This is when you first become eligible for Medicare. And if you miss the deadline to sign up for Parts B and D, you could face expensive penalties .
How Medicare Works If You Have Private Insurance
If you have private insurance, you may want to sign up for Parts A, B, D—and possibly a Medicare Advantage plan (Part C) and Medigap, once you become eligible. Or not. There are reasons both for and against. Consider how the following types of coverage work with Medicare to help you decide.
Primary and Secondary Payers
Your Medicare and private insurance benefits are coordinated, which means they work together. Typically, a primary payer will pay insurance claims first (up to plan limits) and a secondary payer will only kick in for costs not covered by the primary payer.
Frequently Asked Questions (FAQs)
No, you can delay signing up for Medicare without penalty, as long as you are covered by another type of private insurance. Generally, if you are eligible for premium-free Part A, you should still sign up for it, even if you have additional private insurance coverage. 18