A Medicare Primer: Savvy Seniors maximize their benefits.
There are many milestones in a person’s life but few are more intimidating than turning 65. A magical date that transforms you from being middle aged to officially being a “Senior Citizen”, many regret that loss of status, and the stereotyping, but this can also be a time of renewal, freedom, and growth. You finally have the time to do all those things you dreamed of while you were still working, and leisure opportunities abound. If you're approaching your 65th birthday, you're about to enter the wonderful world of Medicare coverage. There are now so many choices, rules and timetables, that it can be complex and confusing. Here are a few things you should know.
When to sign up
The first thing you should know is when to enroll. Everyone is eligible for Medicare at age 65, even if your normal retirement age for full Social Security benefits is later. To avoid possible mishaps, contact the Social Security Administration -- (800) 772-1213; http://www.socialsecurity.gov/ -- three months before you turn 65 to sign up. The initial enrollment period for Medicare runs for seven months, starting three months before your birthday month and continuing for three months afterward.
If you miss your initial enrollment period for Medicare Part B, you'll have to wait until the next annual enrollment period, which runs from Jan. 1 to March 31 for benefits that begin the following July 1. There is also a penalty of 10 percent penalty for each year you wait beyond your initial enrollment period, which will be tacked on to your monthly Part B premium. You can sign up for premium-free Part A, which covers hospital services, at any time with no penalty.
Gaps, Doughnut holes, and Medicare Advantage
Did you know that Medicare also offers a comprehensive health plan sold by private insurers called Medicare Advantage? These plans provide health-care, prescription drug coverage and additional services all in one policy, and thanks to generous government subsidies, these plans are better, cheaper and more readily available than ever before. Medicare Advantage plans are available through HMOs, PPOs, and now as private fee for service plans which allow you to use doctors and hospitals outside your network, usually at an additional cost. Some of these plans charge nothing beyond the cost of the Medicare Part B premium, which is $93.50 a month in 2007. Before deciding on the best option for you, learn about each Medicare Advantage plans offerings, and do your due diligence by comparing and speaking with a knowledgeable advisor.
If you decide to opt for traditional Medicare (Part A and B) or Fee for Service, you'll need two additional insurance policies -- supplemental medigap insurance and a Part D prescription-drug plan -- to get the same level of coverage as a Medicare Advantage plan. And Advantage plans on average are cheaper than what you would pay for traditional Medicare, a medigap policy, and a stand alone prescription drug plan.
Fill the Gaps
Should you choose traditional Medicare, it's recommended you get a medigap policy (sold by private insurance companies) to fill in the gaps that basic Medicare doesn't cover. Policies come in 12 standardized versions, labeled A through L, and cost on average about $140 per month.
Drug Coverage
Along with traditional Medicare coverage and a medigap policy, you need to enroll in a Part D prescription drug plan for drug coverage. There are tons of options offering a wide range of coverage (premiums costs average $24 per month) so choosing can be difficult.
Gaps, Doughnut holes, and Medicare Advantage
Did you know that Medicare also offers a comprehensive health plan sold by private insurers called Medicare Advantage? These plans provide health-care, prescription drug coverage and additional services all in one policy, and thanks to generous government subsidies, these plans are better, cheaper and more readily available than ever before. Medicare Advantage plans are available through HMOs, PPOs, and now as private fee for service plans which allow you to use doctors and hospitals outside your network, usually at an additional cost. Some of these plans charge nothing beyond the cost of the Medicare Part B premium, which is $93.50 a month in 2007. Before deciding on the best option for you, learn about each Medicare Advantage plans offerings, and do your due diligence by comparing and speaking with a knowledgeable advisor.
If you decide to opt for traditional Medicare (Part A and B) or Fee for Service, you'll need two additional insurance policies -- supplemental medigap insurance and a Part D prescription-drug plan -- to get the same level of coverage as a Medicare Advantage plan. And Advantage plans on average are cheaper than what you would pay for traditional Medicare, a medigap policy, and a stand alone prescription drug plan.
Fill the Gaps
Should you choose traditional Medicare, it's recommended you get a medigap policy (sold by private insurance companies) to fill in the gaps that basic Medicare doesn't cover. Policies come in 12 standardized versions, labeled A through L, and cost on average about $140 per month.
Drug Coverage
Along with traditional Medicare coverage and a medigap policy, you need to enroll in a Part D prescription drug plan for drug coverage. There are tons of options offering a wide range of coverage (premiums costs average $24 per month) so choosing can be difficult.
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