by Steve Amante
If Led Zeppelin were recording that song today it’s possible they would be singing about turning 65 and starting Medicare. People usually tell us that they are confused and overwhelmed as they sort through the tons of information they receive on Medicare.
Beginning January 1, 2011 approximately 7000 Baby Boomers will turn 65 each day. Boomers are a huge segment of our population and while some will stay in the work force, some will choose to retire.
If you are turning 65, still working and covered under an employer sponsored or union group plan, you are not required to enroll on Medicare. You will be able to sign up under a special enrollment period when you choose to retire and loose coverage under your group sponsored plan. If you are turning 65 and not covered under a group or union sponsored plan then you will need to enroll in Medicare. If you do not enroll when you are eligible (turning 65) you could be subject to a late enrollment penalty. I usually recommend contacting Social Security at least 3 months prior to the month you turn 65 to avoid any delays in your enrollment. If you are already receiving benefits from Social Security or Railroad Retirement you will be automatically enrolled in Medicare Part A & B beginning the first day of the month that you turn 65.
Here are some common questions. What does Medicare Part A and Part B cover? How much will Medicare cost me? What is Part D and how does it work? Should I go on a Medicare health plan? What is a Medicare Advantage Plan and how is it different from a Medicare Supplement? What is going to be the best health plan for me – an HMO or PPO? What is The Gap or Donut Hole and will it impact me? Can I continue to see my current doctors? All of these are important questions and ones that you should know the answers to as you transition to Medicare and make important decisions regarding your healthcare.
Here is a brief overview of Medicare. Medicare Part A primarily covers in-patient hospitalization. Part B covers out-patient services such as doctor visits, lab tests, physical therapy and preventative screenings. Most people do not have to pay premiums for Part A while the Part B premium is $99.90 in 2012. You could be required to pay more depending on your income. Part D covers prescription drugs. Part D prescription drug plans are administered by private insurance companies and health plans. The cost for a Part D plan will vary depending on benefit features and out of pocket costs. As with Part B, people with higher incomes may pay more for Part D. In addition, there could be a late enrollment penalty if you did not enroll in a Part D plan when eligible and you were without credible prescription drug coverage.
There are a variety of options when selecting a Medicare health plan. When choosing a health plan a number of factors should be considered, such as: current physicians and desired freedom to choose medical providers and services, current prescriptions, the plans out of pocket costs and benefit features, and of course premiums.
Yes, transitioning to Medicare can be very confusing and overwhelming. As a Medicare beneficiary you have access to a variety of health plan options. The important thing is to educate yourself and get the necessary assistance. For more information on Medicare you can visit their web site at Medicare.gov or call 1-800-Medicare. You can apply online at socialsecurity.gov.
When someone calls me asking for help because they are turning 65 and going onto Medicare my first response is usually, Congratulations! So if you are one of the many Baby Boomers getting ready to transition to Medicare, you have arrived.
Steve Amante is the President & CEO of Amante & Associates Insurance Solutions, Inc. Amante & Associates main office is in Temecula at 27450 Ynez Rd. Suite 230, and can be reached at 951-676-8800 or at steve@amateandassociates.com“>steve@amateandassociates.com.