If you find yourself asking this question, you may be looking into more research to find out if it’s truly right for you. If that’s the case, then let’s take a look at what Medicare covers and what exactly it is. We’ll even go over four case scenarios that you might find yourself in, which will help you determine the answer to your question.
What is Medicare?
Medicare is a federally run health insurance program designed to help you with your hospitalization, which is known as Medicare Part A and your medical Part B visits with your doctor. It’s designed to help you with that insurance and it’s available for people who are turning 65 or who have been receiving Social Security or disability for at least two years. To be eligible at 65, you will need to have worked 40 quarters, and/or been married to someone who has worked 40 quarters.
Now that you have an understanding of what Medicare is, let’s take a look at those scenarios.
You’re turning 65 and still employed
If you happen to be on group insurance and love it because of its affordable rates, low costs, low deductibles, then the only thing you need to do is enroll in Medicare Part A, which costs nothing. There is no premium for it but it’s something you would automatically do when you turn 65.
Let’s say you’re in the same scenario with the group insurance, but instead of loving it, you feel the opposite. It’s too expensive or maybe you’re thinking about going part-time and don’t want insurance associated with the company anymore. Well, you can enroll in Medicare Part A and Part B, without having to be on social security to do that. This means you can enroll in Medicare Insurance, and then opt-out of your employer’s group insurance plan. By doing this, it should hopefully save you money and help you receive better benefits, but make sure you shop around to find the best deal for you.
You stayed on the company’s group insurance plan for retirees
A lot of the time, retirees are going to lose their benefits by the time they turn 65 and will be expected to find a different healthcare plan, which will more than likely be Medicare Part A and Part B. For many people, they pay hundreds of dollars just to continue being part of the company’s group insurance plan, so by going to Medicare, you’ll actually find that it is more affordable.
You’re insured directly to an insurance company
Maybe you received your health insurance through healthcare.gov or maybe the government is giving you money to put towards a subsidy. Either way, that insurance is going to end when you turn 65. The government will not keep putting a subsidy out there when you are already eligible for Medicare, meaning you will have to disenroll from that plan and enroll into Medicare Part A and Part B. Delaying your medicare Part B in those scenarios will cost you extra money later on and you’ll have a very limited time of when you can enroll.
You’re turning 65 but you’re on Medicaid
Let’s say you’re on Medicaid, a state-funded program, and you’re turning 65. You’ll have to enroll in Medicare but more than likely, the state will pay a premium for Medicare Part B.
If you’re under the age of 65 and have been on disability for at least 24 months, you will automatically be enrolled at Medicare. As a result, you’ll have your state-funded program and your Medicare Part A and Part B. Most likely, the state will also pick up the premiums for Medicare Part B.
What do I need to do?
If you’re wanting to enroll in Medicare, look at additional options such as a supplement plan, which will pick up the costs that are left behind. These costs can be fees, copays, or deductibles. You also might want to consider getting a stand-alone prescription drug plan or even a Medicare Advantage Prescription Drug plan (MAPD) that will help cover costs when you go to the pharmacy. The MAPD plan is not available everywhere, so make sure you research all the options available to you and choose which plan suits you best.
If you currently do not have health insurance or if you are a veteran and go to the VA for care, you should consider enrolling in Medicare Part A and B. By doing so, you can extend your health coverage and save yourself from paying hefty costs.
At Hitcho Insurance, we work with you to find the best Medicare policy that suits your needs, your goals, and your finances. Give us a call today at (610) 694-9435 and receive a free consultation.
