TURNING 65 AND MEDICARE
There is a lot of information to cover when turning 65 and receiving Medicare. I have included many video's that will help go over most of this information. In this section I will highlight what the average person would go through when turning 65 and obtaining Medicare. Another good resource is the Medicare website itself. Of course if you have questions or don't find the answer your looking for don't hesitate to contact us.
When it comes time at age 65 to receive Medicare you could receive your Part A & B Medicare card in the mail 3 months before you Turn 65. This will happen if you are already receiving social security payments. Side note if you don't want to take part B Medicare at this time because your still working and on your companies health plan you would just return the Medicare card to social security and tell them you only want Part A There will be instructions that come with the Medicare card, for sending it back. If you keep the card, you keep Part B and will pay Part B premiums. For more information about staying on your company plan or not see my blog post Stay Or Go If you have delayed taking social security payments until later you will have to apply for Medicare A & B three months before you turn 65.
There are four ways to sign up for Medicare
1. Online through Social Security Website.
2. Calling social security (800) 772-1213 and applying over the phone.
3. Paper application mailed into social security office.
4. Walk into social security office and apply in person.
Your effective date will be the first day of the month you turn 65 unless you were born on the 1st. In that case it will be the 1st day of the month preceding your birthday month. Example John Doe was born December 1st 1955, his Medicare Part A and Part B effective dates will start November 1st of 2020.
Rookie FACT: The number one mistake seniors make is waiting to the last minute to obtain their Medicare Part A and B. We have witnessed horror stories and at the same time have come to the rescue to help these individuals. It is much easier to not let it get to that. See blog post: Seniors biggest mistake.
You do have 7 months to enroll an obtain your Medicare Part A & B. Three months before you turn 65, the month of your 65th birthday and the 3 months after your birthday. However the longer you wait the longer the effective date of your Part A & B Medicare. See chart below from Medicare.gov...
As you can see from the above chart the longer you wait the harder it is to have a Medicare effective date to coincide with you coming off a company plan at retirement or exactly at age 65.
After obtaining your Medicare coverage Part A & B you will want to look at the two different options you have to help with Medicare. You can add a Medicare Supplement and stand alone RX plan to Medicare or you can replace Medicare with a Medicare Advantage Plan that comes with prescription and extras like dental, vision and hearing.
Medicare by itself is very good health coverage but it does not cover everything and was not meant too. Below are some reasons why you want to look at a Medicare Supplement or Advantage Plan to help with what Medicare does not cover.
As of 2020 the Medicare Part A hospital deductible is $1,408 per benefit period. Each benefit period last 60 days. After you pay the deductible you pay $0 for days 1-60 while in hospital. If you leave the hospital and go back in after those 60 days are up the $1,408 deductible starts all over again - in one year with perfect timing one can pay this deductible 6 times. As of 2020 the Part B doctor deductible is $198 for the entire year. After you pay that deductible Medicare picks up 80% and you will pay 20%. Medicare does not have an out of pocket maximum that once you reach your done paying for the year. So in reality you could be paying that 20% without any end in sight and with expensive procedures like chemo that can add up to a lot. A study done at Harvard University indicates that Medical Expenses is the biggest cause of bankruptcy, representing 62% of all personal bankruptcies