Getting Started with Medicare

An article from the AARP website

Medicare is health insurance offered by the federal government to most people who are 65 and older and to some younger people with disabilities.

Medicare has two parts:

• Hospital Insurance, called Medicare Part A, helps pay for hospital bills
  
• Medical Insurance, called Medicare Part B, helps pay for doctor bills

Who Can Get Medicare

Most people who are 65 and older, some younger people with disabilities and people with kidney failure can get Medicare. Call the Social Security Administration at 1-800-772-1213 if you are not certain you can get Medicare. You'll need to provide your Social Security number and your date of birth when you call.

When You Can Get Medicare

If you are nearing 65, there is a seven-month period during which you can get Medicare. This is the case whether Medicare signs you up or if you need to sign up for Medicare yourself.

This seven month period includes:

• the three months before your 65th birthday
  
• the month of your 65th birthday
  
• the three months after your 65th birthday

The best time to sign up for Medicare is during the three months before your 65th birthday.

How to Sign up for Medicare at 65

You can sign up for Medicare in one of two ways:

• You are automatically signed up for Medicare when you turn 65 if you are getting Social Security or Railroad Retirement payments. You'll receive a package of Medicare
  information, including your Medicare card, in the mail. Call the Social Security Administration at 1-800-772-1213 if you do not get your information package by your 65th birthday.

- or -

• You need to sign up for Medicare yourself if you do not get Social Security or Railroad Retirement payments. You can sign up by calling or visiting the Social Security office nearest you. Go to the Social Security Administration Web site to find the Social Security office nearest you. You cannot apply for Medicare online at this time.
  

Here is an example of someone who needs to sign herself up:

Julia will be eligible for Medicare when she turns 65 in a few months. At 65, Julia can also start collecting full Social Security benefits. However, since she plans to work until she is 70, she has decided to wait until then to get Social Security benefits. In Julia's case, she will need to sign up for Medicare herself.

Deciding About Medicare Part B (Doctor Bills)

When you sign up for Medicare, you will get Part A, which covers hospital bills. Most people do not have to pay a monthly cost (premium) for Part A. That is because they or their spouse paid Medicare taxes while they were working.

Signing up for Medicare Part B, which pays for doctor bills, is your choice. You will have to pay a monthly premium for Part B. You can sign up when you first go on Medicare, turn down the coverage, or wait to sign up at a later date.

Why would you wait to sign up for Part B? If you are working and already have group health insurance from your employer or your spouse's employer, you might not need Part B right away.

However, you need to be aware that if you wait to sign up for Part B, the premium could go up by 10 percent for each year you could have had Part B. You will have to pay that extra cost as long as you remain on Medicare.

You won't have to pay the penalty for waiting if:

• You sign up for Medicare Part B while you are still working and covered by group health insurance, or
  
• You sign up for Medicare Part B within eight months after you are no longer covered by group health insurance.
  

If you think you will meet these conditions and decide to wait, here's what you need to do:

• If Medicare signs you up for the program, you will get Parts A and B. You will need to tell Medicare you don't want to keep Medicare Part B at this time. You will get a form to do this in the packet of Medicare information you receive in the mail.
  
• If you sign up for Medicare yourself by calling or visiting your local Social Security office, you need to tell Medicare you don't want Part B.
  
• If you don't meet these conditions, you will have to pay more for Medicare Part B when you do get it. You may want to talk to your employer's benefits manager about whether getting Part B when you first sign up for Medicare is right for you.

Here is an example of someone who waited to sign up for Part B and didn't pay more.

John turned 65 in March 2000. John still had group health insurance at 65 and was paying a monthly premium for his health insurance. Because he had this coverage, John decided he didn't need Part B (and pay the monthly premium) at 65 but would wait until he retired at 67. When John signed up for Medicare in March 2000, he told Medicare he didn't want Part B, only Part A.

When John retired in April 2002 and was no longer covered by his employer's health insurance, he needed Part B and signed up at that time. John didn't have to pay more for Part B, since he signed up by December 2002 (eight months after he retired).

Time Limitation

If you are 65 or older, when you sign up for Part B, you have six months to buy any Medicare Supplemental (Medigap) policy you choose, regardless of your health. This is called your open enrollment period. You only have this period once in your life. After this six month period, you may not be able to buy the Medigap policy you want.

If you are 65 or older, are working and have group health coverage from your or your spouse's employer, you can save your open enrollment period until you need it. Get all the facts first from Medicare and your State Health Insurance Assistance Program (SHIP) before making a final decision about when to sign up for Part B.

AARP Resources

Medicare Savings Programs
Information about programs that help people with low-incomes pay for some of their Medicare costs.

Understanding Medicare, Medigap, and Medicaid
AARP explains how these programs work.

Additional Resources

Medicare
Information on who can get Medicare and how to sign up.

State Health Insurance Assistance Program (SHIP)
How to contact your State Health Insurance Assistance Program (SHIP), an important Medicare partner. Free one-on-one health insurance counseling to people with Medicare.

Social Security Administration: 1-800-772-1213
Hearing and Speech Impaired: TTY/TDD 1-800-325-0778
Call the Social Security Administration to find out if you can get Medicare. Toll-free numbers are staffed 7:00 a.m. to 7:00 p.m., Monday - Friday. Spanish speakers are available.

Sign up for Medicare by visiting or calling the Social Security office nearest you. You can find the phone number of your local office through the Social Security Administration website

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