Nearing 65? What to do about Medicare
How to spring clean your finances and retirement savings
Medicare is a health insurance program operated by the federal government and benefits are available to qualifying individuals 65 or older.
Parts of Medicare
Deductible, coinsurance and copayments may apply to all of the below.
Part A
Hospital/Hospice Insurance
Covers inpatient hospital stays, some skilled nursing facility, hospice and eligible home health care.
No premium if you qualified for enough credits via the FICA Medicare payroll tax you paid during your working career!
Part B
Medical Insurance
Helps pay for some services and products not covered by Part A, generally on an outpatient basis.
Monthly premium is based on income.
Part C
Medicare Advantage Plans – You have the choice between Part C (Medicare Advantage) or a Medigap Policy described below:
Variety of supplemental plans to Parts A & B offered through Medicare contracted private insurance.
Separate monthly premium which may be less than a Medigap plus Part D plan
Includes services like chriopractic, vision, dental, hearing, etc.
Network of providers – may not be accepted everywhere
May he subject to stringent management programs (such as prior authorizations).
If still working and can still receive medical insurance via employer
Employer has fewer than 20 employees
Medicare is the primary provider.
Sign up for Medicare up to 3 months prior to turning age 65 at medicare.gov.
Employer has 20 or more employees
Medicare is the primary provider.
Employer plan is the primary provider if IRS defined group health plan.
Can sign up for Part A (premium-free) when you turn age 65.
If you are on spouse’s employer plan, ask employer if non-working spouses can remain on plan after eligibility for Medicare.
Because Medicare Part B requires a monthly premium, you may choose to delay enrollment in this plan while you still are covered under you or your spouse’s employer’s plan as an active employee.
If you retire past the age of 65 and are coming off your employer’s group health plan, you have an 8-month special enrollment window in which you can sign up for Medicare Part B. If you do not enroll during this window, you may have to wait for coverage and will be subject to a penalty for late enrollment.
If still working and can still receive medical insurance via employer
If already receiving Social Security retirement benefits
You’ll automatically get Part A & B starting the first day of the month you turn 65. You’ll receive your Medicare card in the mail about 3 months before your 65th birthday. If you don’t want one or both parts, contact Medicare.
Make decisions on other health coverage (Parts C, D, Medigap or Supplemental).
Sign up for Medicare up to 3 months prior to turning age 65 at medicare.gov.
If NOT receiving Social Security retirement benefits
Sign up for Medicare up to 3 months prior to turning age 65 at medicare.gov.
Getting your finances organized doesn’t take a lot of time so don’t put it off until it’s too late. Making small changes now can have a big impact on your financial future. You can tackle all of these tasks for your retirement account at myconradsiegel.com or through our mobile app.
This website does not provide investment, tax, financial or other advice. It is provided for informational and educational purposes only and is intended to be used as a guide.