Sign Up For Medicare At 65 - Avoid Penalties | Stewardship Concepts Financial Advisors

Many people don't realize that sometimes you must sign up for Medicare even if you don't plan on using it. As you reach age 65 and are still part of your employer's or spouse's health insurance, understanding Medicare options is critical because you may be required to sign up for Medicare to avoid penalties. Even if you intend to maintain your current coverage, you must understand Medicare's requirements. If you don't plan on using Medicare, you may still need to sign up depending on how many employees are at your job. Depending on your situation, you'll either delay enrollment or need to sign up immediately. Here are a couple of tips on signing up for Medicare that we see clients run into as Spokane Financial advisors.

More Than 20 Employees

If your employer's (or spouse's employer's) sponsored coverage has 20 or more employees, you are not required to sign up for Medicare at age 65. However, if your employer requires you to pay a large portion of your insurance premiums, you may find that Medicare is cheaper and the coverage sufficient. Take the time to compare your current coverage, including deductibles, premiums, and copays, with Medicare coverage. What Medicare covers | Medicare If you have paid into Medicare for at least ten years, your Medicare Part A will be free. Medicare Part B will cost 174.70 per month in 2024 for most people. After signing up for A and B, you can purchase a Medicare supplement plan or Medicare Advantage plan. Both types of plans have pros and cons, and a Medicare specialist can help you determine the proper coverage.

Less Than 20 Employees

If your employer (or spouse's employer) insurance has less than 20 employees, you must enroll in Medicare Part A and B when you turn 65. Medicare will then act as your primary coverage, and your employer coverage will become secondary. This means that Medicare pays first, and employer insurance will kick in to cover the gaps. If you keep your employer coverage, you probably don't need a Medicare Advantage or supplement plan right away. However, Medicare supplement plans have something called a guaranteed issue.

Supplement Plan

When you first sign up for Medicare Part B, and you are 65 or older, you can enroll in any Medicare supplement plan without going through medical underwriting. You are guaranteed to get the policy that you apply for. However, after six months, this goes away, and you may not be able to buy a Medigap policy in the future if you have pre-existing health conditions. This is why knowing your options is important when you first enroll.

Penalties

Medicare is intricate and has numerous rules. Late enrollment can also lead to permanent penalties. For each 12-month period, you delay Medicare Part B enrollment (unless you have employer coverage of 20 or more employees), you'll incur a 10% premium penalty. Therefore, it's crucial to consult a Medicare specialist as you near age 65, especially if you plan to continue working or have insurance from a spouse's employer-sponsored plan. Your Spokane financial advisor can help review your options and connect you with a Medicare specialist. Schedule a no-cost discovery call with one of our Spokane financial advisors today.