Health care in retirement
Most Americans have heard of Medicare, but far fewer have a strong understanding of what it is and how it works. Many people, especially those approaching retirement, may start asking themselves basic question about the program. Here are some answers to your common Medicare questions.
Who is Medicare for?
People qualify for Medicare when they turn 65. Most people should enroll in Medicare when they turn 65, but there are a couple of exceptions. If you have group health plan coverage through an employer and your employer has at least 20 employees, you may be able to delay enrollment in Medicare. After your employer-sponsored coverage ends, you will need to enroll in Medicare, even if you qualify for coverage through COBRA. It’s also possible to delay enrollment if you or your spouse is an active-duty service member and you’re covered by TRICARE. You must enroll in Medicare before active duty ends to avoid a break in coverage and to avoid late enrollment penalties. In some cases, people may qualify for Medicare before they turn 65 due to permanent disability or End-Stage Renal Disease. See Medicare.gov for more information on when you should enroll in Medicare.
What is Medicare?
Medicare is a health insurance program run by the federal government and managed by the Centers for Medicare & Medicaid Services (CMS). It consists of multiple parts:
- Medicare Part A provides hospital insurance, including inpatient hospital stays, as well as care in a hospice or skilled nursing facility and some home health care.
- Medicare Part B provide medical insurance, including doctor services, outpatient care, preventative services and supplies.
- Medicare Part D provides prescription coverage.
Some people decide to supplement their Medicare coverage with a type of private health insurance plan commonly called Medigap. Medigap policies can help pay for things like copayments and deductibles. Other people decide to purchase Medicare Advantage, also called Medicare Part C. Medicare Advantage plans are private policies that combine Medicare Part A and Medicare Part B. Many also provide prescription coverage, and some offer additional benefits not normally covered under Medicare.
Do I need to sign up for Medicare?
You need to enroll in Medicare on time in order to avoid expensive penalties. You can sign up for Medicare during your Initial Enrollment Period. This is a seven-month period that starts three months before the month you turn 65 and ends three months after the month you turn 65. You can sign up for Medicare through the Social Security office. This can be done online, over the phone or in person. For more information on how to enroll, see Medicare.gov.
Do I need to pay for Medicare?
You need to pay for Medicare. Most people qualify for premium-free Medicare Part A because either they or their spouse worked and paid Medicare taxes for a long enough period of time. However, the other parts of Medicare do require premiums. In 2018, the standard Part B premium is $134 per month. Some people qualify for a Medicare Savings Program to help pay for Medicare, or Extra Help to help pay for Medicare prescription coverage.
Read more articles about Medicare Insurance.