If you’re happy with the coverage your employer offers, you may think you don’t need to enroll in Medicare. But individuals who work for a small employer (i.e., generally one with fewer than 20 employees*) should enroll in Part B because that will be their “primary” insurance coverage.
Full Answer
Why is it important to sign up for Medicare Part B?
Enrollment into Medicare is voluntary, but if you choose to do it at the wrong time – you may not like the outcome. This is why it’s important to sign up for Medicare Part B on time. Will Medicare Mail Me an Enrollment Letter?
Do I have to enroll in Medicare Part B?
But individuals who work for a small employer (i.e., generally one with fewer than 20 employees*) should enroll in Part B because that will be their “primary” insurance coverage. Employees of large companies (i.e., usually one with more than 20 employees) do not have to enroll in Medicare.
Should I enroll in Medicare or individual market insurance?
But once you’re eligible for Medicare, an individual market plan may pay little or nothing toward your care. This is why it’s important to enroll in Medicare (and a Medigap or Medicare Advantage plan) when you’re first eligible for the benefit.
Is delaying Medicare Part B enrollment a good idea?
Enrollees aging into Medicare face a multitude of options. Delaying Part B enrollment is one you should approach carefully. There are two main ways to avoid the Part B late-enrollment penalty and enroll in the right medical coverage at the right time.
Why do I need Medicare Part B?
Medicare Part B helps cover medical services like doctors' services, outpatient care, and other medical services that Part A doesn't cover. Part B is optional. Part B helps pay for covered medical services and items when they are medically necessary.
What are the benefits of having Medicare A and B?
If you're wondering what Medicare Part A covers and what Part B covers: Medicare Part A generally helps pay your costs as a hospital inpatient. Medicare Part B may help pay for doctor visits, preventive services, lab tests, medical equipment and supplies, and more.
What are three reasons why someone can be eligible for Medicare?
Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant).
What does Medicare Part B is known for?
Medicare Part B (medical insurance) is part of Original Medicare and covers medical services and supplies that are medically necessary to treat your health condition. This can include outpatient care, preventive services, ambulance services, and durable medical equipment.
Which statement is true about members of a Medicare Advantage MA plan who want to enroll in a Medicare supplement insurance plan?
Which statement is true about members of a Medicare Advantage (MA) Plan who want to enroll in a Medicare Supplement Insurance Plan? The consumer must be in a valid MA election or disenrollment period.
Who is eligible for Medicare Part B?
You automatically qualify for Medicare Part B once you turn 65 years old. Although you'll need to wait to use your benefits until your 65th birthday, you can enroll: 3 months before your 65th birthday.
When should you apply for Medicare?
Generally, we advise people to file for Medicare benefits 3 months before age 65. Remember, Medicare benefits can begin no earlier than age 65.
When can I enroll in Medicare?
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.)
How do you explain Medicare?
Medicare is the federal government program that provides health care coverage (health insurance) if you are 65+, under 65 and receiving Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and with End-Stage Renal Disease (ESRD).
What is the importance of Part B?
Part B coverage offers medically necessary doctor's services, outpatient care, and most other services that Part A does not cover. These may include physical or occupational therapies and some home health care services. Part B also covers some preventive services.
What expenses will Medicare Part B pay for?
Medicare Part B offers comprehensive coverage for outpatient services, durable medical equipment, and doctor visits. The two main types of coverage this part of Medicare includes are medically necessary and preventive. The medically necessary coverage encompasses a variety of tests, procedures, and care options.
How is Medicare Part B funded?
Part B, the Supplementary Medical Insurance (SMI) trust fund, is financed through a combination of general revenues, premiums paid by beneficiaries, and interest and other sources. Premiums are automatically set to cover 25 percent of spending in the aggregate, while general revenues subsidize 73 percent.
What is the best time to sign up for Medicare?
The Initial Enrollment Period is arguably the most important enrollment periods for you to know and understand. Your IEP is a seven-month window of time and is the best time to sign up for Medicare.
Is Medicare Part B premium free?
Medicare Part B coverage is not so cut and dry. For starters, Part B is not premium-free. Most people will pay a monthly premium based on their income. The only exception is for people with very low incomes who qualify for Medicaid. These folks may have their Part B premiums paid for by Medicaid.
Is it a no brainer to sign up for Part B?
Waiting to sign up for Part B can be accompanied by some serious, life-long consequences. For some, signing up is a no-brainer (or even happens automatically) while for others, their situations can complicate the decision.
How to apply for Part B?
Signing up for Part B is easy—apply by March 31. Fill out a short form, and send it to your local Social Security office. Call Social Security at 1-800-772-1213. TTY users can call 1-800-325-0778. Contact your local Social Security office. If you get benefits from the Railroad Retirement Board, contact your local RRB office to sign up for Part B. ...
When do you get Medicare Part B?
Most people get Medicare Part B (Medical Insurance) when they turn 65. If you didn't sign up for Part B then, now's the time to decide if you want to enroll. During Medicare's General Enrollment Period (January 1–March 31), you can enroll in Part B and your coverage will start July 1.
Is it important to enroll in Part B?
Deciding to enroll in Part B is an important decision. It depends on the type of coverage you have now. It’s also important to think about the Part B late enrollment penalty—this lifetime penalty gets added to your monthly Part B premium, and it goes up the longer you wait to sign up.
How long can you delay Cobra?
The Consolidated Omnibus Reconciliation Act (COBRA) allows most employees and their family members to continue coverage after their employment ends – usually for up to 18 months. But having COBRA benefits does not mean you can safely delay signing up for Part B. Individuals who delay enrolling in Part B because they have COBRA coverage will not receive a SEP to enroll in Part B later.
How long is the Medicare Part B enrollment period?
If you meet these criteria, you’ll receive an 8-month long special enrollment period (SEP) during which you can enroll in Part B without penalty. The Medicare Part B SEP begins the sooner of when: ...
What is EGWP in Medicare?
Additionally, many employers offer retiree benefits through Employer Group Waiver Plans (EGWPs) – a type of Medicare Advantage plan. You have to be enrolled in Medicare Parts A and B to receive retiree benefits through an EGWP.
What is Medicare Part B?
Medicare Part B covers most of the services people expect in a health plan – such as outpatient physician visits , mental health services, lab tests, and physical therapy. It’s important to sign up at the correct time for this part of Medicare – because simple enrollment mistakes can result in gaps in coverage and lifelong premium penalties.
How much is the Part B premium for 2020?
The Part B premium in 2020 is $144.60 per month for most people. Consider an individual who qualified for Part B five years ago but didn’t enroll until this year – ...
Can you delay enrolling in Medicare Part B if you are no longer employed?
Note that coverage through Medicaid, a retiree plan, COBRA, or individual market coverage (e.g., through HealthCare.gov) will never allow you to safely delay enrolling in Medica re Part B.
Can Medicare beneficiaries buy individual market policies?
In fact, Medicare beneficiaries are not allowed to purchase individual market policies other than Medigap plans. Many Americans are enrolled in the individual market when they qualify for Medicare – and can keep their individual market plan after becoming Medicare eligible.
Can I get Medicare if I turned 65?
You say you chose not to get Medicare, so I assume you already have turned 65. But if you just turned 65, it’s standard for Social Security to send you notice about Medicare enrollment. Social Security administers many aspects of Medicare including the enrollment process and handling the deduction of Part B premiums from monthly Social Security ...
Is Medicare correct to sign you up for Part B?
Further, your failure to return that card in a timely fashion does not necessarily mean that Medicare was correct to sign you up for Part B and begin to subtract the monthly premiums for Part B from your Social Security. However, it might have been correct.
Who is Phil Moeller?
Phil Moeller is the author of “Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your Costs” and the co-author of the updated edition of The New York Times bestseller “How to Get What’s Yours: The Revised Secrets to Maxing Out Your Social Security,” with Making Sen$e’s Paul Solman and Larry Kotlikoff.
Does a postal worker have health insurance?
Health insurance for postal workers is provided by the Federal Employee Health Benefits Program (FEHBP). It generally provides strong coverage and, I’m assuming, covered you as a retiree’s spouse while your husband was alive. The key question here is what happened to your coverage when your husband passed away.
What happens if you don't have Medicare Part B?
Going without Medicare Part B and not having other coverage might leave you paying high out-of-pocket costs for doctors’ visits, preventive care, and medical services. Health care needs tend to increase as people get older, and any potential savings from delaying enrollment in Part B could be offset if you get sick and don’t have medical coverage. If you wait to enroll and then contract an illness, you may not be able to sign up for Medicare Part B until the next General Enrollment Period. In the meantime, you may have to pay for all medical costs out-of-pocket.
What is a special enrollment period?
A Special Enrollment Period occurs anytime you have a qualifying situation and lets you enroll in Medicare Part A and/or Part B outside of the annual enrollment periods. If you are an active-duty service member (or the spouse or dependent child of an active-duty member), you may delay Part B enrollment and keep your TRICARE coverage.
What are the pros and cons of delaying Medicare Part B enrollment?
If you already have other coverage, the biggest advantage of delaying Part B enrollment is not paying an additional premium for benefits you may not need or use.
What type of coverage does not count as creditable?
The following types of coverage do not count as creditable coverage based on current employment and would not exempt you from paying the Part B penalty if you delay enrollment: COBRA. Retiree benefits. TRICARE (unless you, your spouse, or dependent child are an active-duty member)*. Veterans’ benefits.
How long do you have to work to get Medicare Part A?
Many individuals qualify for premium-free Medicare Part A (hospital insurance), provided that they have worked at least 10 years (or 40 quarters) and paid Medicare taxes during those time periods. For these individuals, it typically makes sense to keep Part A, since the coverage comes at no added cost. However, because Part B comes ...
Do you have to pay for medical expenses out of pocket?
In the meantime, you may have to pay for all medical costs out-of-pocket. Those who do not sign up for Medicare Part B when they’re first eligible and don’t qualify for a Special Enrollment Period may be subject to a late enrollment penalty.
Is it better to enroll in Part B or Part B?
For those who only spend part of the year living overseas, or those who foresee eventually moving back to the U.S., it may be safer to enroll in Part B when first eligible to avoid paying a large penalty later.
What is the penalty for late enrollment in Medicare?
Medicare’s prescription drug program (Part D) comes with a much less onerous late-enrollment penalty, equal to 1% of the national base beneficiary premium for each month of delay.
How long does Medicare enrollment last?
Streamlined Enrollment. Currently, Medicare has three enrollment periods. The Initial Enrollment Period (IEP) includes the three months before you turn 65, the month of your 65th birthday, and the three months after you turn 65 or become eligible for Medicare due to receiving Social Security disability benefits.
What age do you have to be to enroll in Medicare Part B?
Unfortunately, one part of the BENES Act that was left out of the final legislation would have required the Social Security Administration to inform people as they near age 65 that they are eligible to enroll in Medicare Part B—and to explain the consequences of mistakenly delaying enrollment.
Can a spouse be covered by a worker's policy?
A spouse covered on a worker’s policy can do the same. However, for anyone working for a firm with 20 or fewer employees, Medicare becomes the primary payer. In those cases, enrollment must occur at the first point of eligibility to avoid gaps in coverage and high out-of-pocket costs. And the complications don’t stop there.
Is Medicare automatic at 65?
Let’s review the basics. If your client already receives Social Security benefits at age 65, Medicare enrollment is automatic. But for everyone else, it’s a proactive process. Along with the aforementioned coverage gaps, failure to enroll at age 65 can saddle your clients with stiff late-enrollment surcharges.
Will Medicare notify you about Part B?
Medicare Won’t Alert Clients About Part B Eligibility. It’s up to advisors to remain vigilant to help clients avoid the consequences of mistakenly delaying enrollment. In one of its last moves of 2020, the U.S. Congress punted on a terrific opportunity to help people navigate Medicare enrollment.
Who is Mark Miller?
Mark Miller is a journalist and author who writes about trends in retirement and aging.
What happens if you don't get Part B?
If you didn't get Part B when you're first eligible, your monthly premium may go up 10% for each 12-month period you could've had Part B, but didn't sign up. In most cases, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part B.
How much is the penalty for Part B?
Your Part B premium penalty is 20% of the standard premium, and you’ll have to pay this penalty for as long as you have Part B. (Even though you weren't covered a total of 27 months, this included only 2 full 12-month periods.) Find out what Part B covers.
What to do if you drop Part B?
If you’re dropping Part B because you can’t afford the premiums, remember that you could save money on your health care costs in other ways. Consider adding a Medicare Advantage or Medigap plan instead of dropping Part B. Call us to learn more about these alternatives to disenrolling in Part B.
What happens if you don't have health insurance?
Without health insurance that’s as good or better than Medicare, you could start racking up late-enrollment penalties the longer you go without coverage. If you decide to re-enroll in Part B later, these penalties could make your premiums (what you pay for coverage) even less affordable.
What happens if you opt out of Part B?
But beware: if you opt out of Part B without having creditable coverage—that is, employer-sponsored health insurance from your current job that’s as good or better than Medicare—you could face late-enrollment penalties (LEPs) down the line.
How to schedule an interview with Social Security?
Call a Licensed Agent: 833-271-5571. You can schedule an in-person or over-the-phone interview by contacting the SSA. If you prefer an in-person interview, use the Social Security Office Locator to find your nearest location. During your interview, fill out Form CMS 1763 as directed by the representative.
Is Medicare a secondary payer?
Conversely, a secondary payer health plan covers only costs left over after Medicare covers its share. If your health plan at work is a primary payer, that’s great. Feel free to drop your Part B coverage if you wish. The Part B premiums might not be worth any additional coverage you receive. But if you have secondary-payer insurance ...
Is it easy to cancel Medicare Part B?
Disenrolling in Medicare Part B isn’t an easy process because it requires an in-person or phone interview. But this is intentional. Canceling Part B could have negative consequences for your wallet (in the form of late-enrollment penalties) and your health (in the form of a gap in coverage).
Can Medicare tack late enrollment penalties?
If you have a gap in coverage, the Medicare program could tack late-enroll ment penalties onto your Part B premiums if you re-enroll in coverage again later. Avoid this pitfall by working with your human resources department to ensure that your company's insurance is indeed creditable (meaning that it’s as good or better than Medicare Part B). You may need to provide documentation of creditable coverage during your Part B cancellation interview.