A client recently asked me what to consider when becoming eligible for Medicare. Below are a few things to consider:
- Once youâ€™re eligible for Medicare, youâ€™ll have an Initial Enrollment Period (IEP) to sign up. For most people, their 7â€month Medicare IEP starts 3 months before their 65th birthday and ends 3 months after their 65th birthday.
- Most of the time, itâ€™s better to sign up when you are first eligible.
- If you enroll in Medicare after your IEP, you may have to pay a late enrollment penalty for as long as you have Medicare.
- Premiums are typical $135/mo. (Source p9)
- Those with limited income and resources may be eligible for help paying your Medicare Part B and Part D premiums and for some reduced cost sharing for Medicare Part D coinsurance/copayments.
- Medicare Supplement Insurance helps fill the coverage gaps â€œMedigapâ€.
- There are 11 Medicare Supplement Plans (generally between $120/$250/mo) that are standardized, guaranteed renewable (as long as you pay the premiums), with no referrals needed to see a specialist, no networks, and coverage throughout the entire USA.
The chart below shows basic information about the different benefits Medigap policies cover. (Source)Â Yes means the plan covers 100% of this benefit.Â No means the policy doesn’t cover that benefit. A % means the plan covers that percentage of this benefit.Â N/A means not applicable.
For more information, visit Medicare.gov.