Medicare Enrollment: Don’t Make This Mistake

In

this

week's episode we're going to talk about signing up for Medicare and the one

mistake

you should avoid, let's get started. Hi, I'm Patrick King with prana wealth. In

this

channel we help you generate your wealth faster so you can work. optional before, so if you're new here, consider subscribing and don't forget to sign up for our email newsletter at pranawealth.com. You don't want to be late for certain life events, like your wedding day, a court appearance. o Enrollment in Medicare Failure to do any of the above will cost you dearly for Medicare The benefits application process can be confusing It is a government program after all Being late on your application can cause you to pay higher premiums for the rest of your life Let's go over everything important you need to know before applying for Medicare first as a quick reminder Medicare has four parts Medicare provides health insurance benefits to eligible participants, generally those age 65 or older, if you or your spouse have paid Medicare taxes for at least 10 years. years then you qualify for benefits people with disabilities or end-stage renal disease are also eligible, but today we will focus on retirees the four parts of Medicare are part a, hospital insurance, part b, medical insurance, part c, Medicare Advantage plans and Part D, prescription drug coverage, Part A covers. hospital in patient care in a skilled nursing home home health care and palliative care this coverage generally has no premium costs, although deductibles and coinsurance apply part b covers doctor visits laboratories outpatient surgery and preventive care anti-inflammatory treatments cancer kidney dialysis and durable medical equipment are also covered part b has monthly premiums that are means tested in 2021 the premium starts at 148 and 50 cents per month and increases based on your taxable income from the last two years together, parts a and b They are considered original Medicare.

Part C is not actually part of Medicare. Instead, Part C is a type of optional private health insurance approved by Medicare. Part C plans known as Medicare Advantage plans incorporate parts A, B, and usually D into their coverage, but you deal directly with the insurance company instead of Medicare, these are managed care plans that include HMOs and insurance options. ppo, we will analyze them in more detail later. Part D covers the costs of prescription drugs. This is optional coverage, so you will not be automatically enrolled like you would with parts A and B. In some cases it is important to note that some, but not all Part C plans include prescription drug coverage, if you choose to go that route be sure to read the fine print of your policy.

Okay, when should you apply? Medicare has three different

enrollment

periods, the initial

enrollment

period, the special enrollment period, and the general enrollment period. The initial enrollment period for Medicare is a seven-month period that centers around the month you turn 65, So, for example, if your birthday is September 21, your initial enrollment period begins June 1 of that year and ends December 31. For a period of seven full months, if you are already receiving Social Security, you will automatically be enrolled in Part A and Part B when you turn 65. Be sure to look for a

medicare

welcome packet that will include your

medicare

card, however, if you want to enroll in part d or enroll in a part c plan you will not be automatically enrolled you will need to submit a proactive application during your initial enrollment period, So what happens if you don't receive social security benefits or don't plan to? within four months of turning 65, if that is the case, we have two potential scenarios: In the first scenario, you are still eligible for a group health insurance plan through your employer or your spouse's employer, so If so, you do not have to enroll in Medicare during your initial enrollment period; instead, you will need to apply during a special enrollment period, which is an eight-month enrollment period that begins when you or your spouse stops working. , why eight months instead of seven, well your guess is as good as mine just to get things done.

Interestingly, some employer health insurance plans allow workers to retain group coverage after they have applied for Medicare. In this case, there are many rules to determine which insurance pays first. If you think this may apply to you, check with your benefits coordinator at work. Our second scenario, if you are not in a group health insurance plan and not receiving social security benefits, you will have to proactively apply for Medicare during your initial enrollment period. Here's the catch: If you miss your initial enrollment period or your special enrollment period after you stop working, you'll have to wait until the next general enrollment period, which runs from January 1 to March 31 of each year. year, after you apply your coverage will begin on July 1 of that year, if you miss your first opportunity to apply, you will owe a penalty on your Part B premiums.

You could potentially pay up to $20 more per month for Part B premiums. Part B for the rest of his life. You will also need to pay a penalty on your Part D premiums, if possible. Avoid signing up during a general period. enrollment period Because the stakes are high, I highly recommend visiting the When Can I Sign Up for Medicare page on the Medicare website and answering the questions to determine when you should apply. I'll post a link in the show notes below, so how can you do that? apply for Medicare, there are three ways to sign up for benefits.

The first is online, just go to the medicare.gov website and sign up there. The second is to call. You can register by calling the Social Security Administration at 1-800-772. 1213 number three is to go in person. You can visit the nearest social security office and register there, but keep in mind that the social security administration has closed its offices during the coveted pandemic, so first check if your local office is open before you go. The number one big decision is Part D coverage. During the Medicare enrollment process, you will face two big decisions: The first is whether to apply for Part D coverage.

Prescription drug costs are not cheap . Nearly 75 percent of all Medicare enrollees enroll in Part D. You will have the option to change your Part D plan in the future if necessary, of course, if you enroll in a Part C plan. Medicare, your prescription drug coverage will most likely be included. Be sure to read the fine print, as not all Part C plans include prescription drugs, so big decision number two is part C vs. Medigap insurance. The second big decision to

make

regarding Medicare enrollment is whether to apply for a Medicare Advantage Part C plan. In reality, an overwhelming majority of applicants choose to decline Part C coverage instead.

Purchase a Medigap policy to supplement your Medicare Part A, B, and D coverage. Medigap policies are also regulated and deserve a separate video. It's easy to confuse Medicare Advantage plans, also known as Medicare Part C, with Medicare Supplement insurance, which is the official name for a Medigap policy. They are not meant to work together, in fact, it is illegal for an insurance company to sell you a policy if you already have the other type. Essentially, there are three paths you can choose when beginning the Medicare enrollment process. Number one is to go with Medicare only this one. includes parts a b with optional prescription drug coverage in part d number two is to choose a Medicare Advantage plan here you buy a Medicare Part C plan that incorporates parts a b and usually d finally number three is to apply for Medicare and purchase a Medigap policy With this choice your Medigap policy works in conjunction with Medicare Parts A and B with optional Prescription D coverage, while there is no right or wrong answer, most enrollees choose the Medigap route and add Part D coverage if in the future discovers that its needs change, it has the ability to change from one path to another subject to some rules, of course, the really important thing here is simply not to be late.

If you need help planning for healthcare costs in retirement, visit us at pranawealth.com to see if we are a Good Fit, we still have the ability to accept new clients as a fee-based financial advisor in Atlanta. We can work virtually with clients throughout the United States. We are here to help you when you are ready. Hey, if you found this. helpful video, help me grow my channel by liking this video and subscribing to my channel and don't forget to subscribe to our email newsletter at Prontowealth.com. Thank you very much for watching and see you soon.