I ran into a friend this week who mentioned he needed to get signed up for Medicare. He is turning 65 in the fall and thought he should talk to me right away. This is a common concern so I thought I would talk about it this month.
Most people do enroll in Medicare when they are close to their 65th birthday. However, there are some exceptions to be aware of.
You do not need to sign up for Medicare when you turn 65 if you have employer-based insurance through you or your spouse’s current job. You can wait to sign up until you are ready to stop working or you lose your health insurance (whichever comes first).
Be aware if your employer has less than 20 employees or you have COBRA; you will need to enroll in Medicare at 65 to avoid any penalties. If you are still working and have employee insurance, you can enroll in Medicare Part A. Medicare pays secondary to other insurances, including paying the deductible. There are some restrictions: the charge must be Medicare-covered services and the total amount paid must be equal to or less than the Medicare-approved amount.
There’s little downside to enrolling in Part A. It covers hospital stays and skilled nursing care once you’ve paid the deductible ($1,600 in 2023). It is premium-free to anyone who worked for at least 40 quarters in Medicare-covered employment.
My friend’s situation was interesting. His wife is younger than he is and so he plans to work for a few more years so that she can continue to be covered through his employee plan, but he wants to compare the cost of Medicare to the cost of staying on his employee plan. We will do a comparison based on monthly premiums and deductibles.
Everyone’s situation is unique. Things like the cost of your current health plan, your plan’s deductible, your prescription coverage, doctor networks, and other considerations should all be considered when deciding when it is best for you to enroll.
As always, please call me to make an appointment if you are about to enter the Medicare world or have questions about your situation. I would love to be your guide. Please call Lynne Jones, licensed sales representative, at (480) 212-2246 or email at jonesdvp@yahoo.com.