It is important to understand the basics of Medicare.
Many people find Medicare a mystery.
If you are one of them, then you are not alone.
The good news?
According to a recent Think Advisor article titled “Essential Medicare Facts & Penalties Advisors Should Know on One Page,” learning the basics is not difficult.
You are eligible to enroll in the program if you (or your spouse) have paid Medicare taxes for at least a decade and are age 65.
What if you are younger than age 65?
You must either have an end stage renal disease or be disabled.
What is the deadline for Medicare enrollment?
You are eligible beginning the first day of the third month preceding you birth month in the year you turn age 65.
It will end on the last day of the third month following the month you were born.
There will be a separate “later-enrollment” penalty for Part B and Part D.
You should know are four parts to Medicare.
What are they?
Medicare Part A
For most people, this plan is free.
What if you did not enroll in Medicare taxes?
You may be able to receive it for free if you meet certain qualifications.
What are they?
One way is if you are a kidney transplant patient or on kidney dialysis.
The other is if you have been entitled to Railroad Retirement Board disability or Social Security for 24 months.
Medicare Part B
You will be required to pay a premium for Medicare Part B.
This payment is deducted from your Social Security retirement payment.
What if you have not yet opted to receive your Social Security benefits?
Medicare will simply send you a bill.
Medicare Part C
Another name for this is the Medicare Advantage plan.
A Medicare-approved insurer must issue this plan.
These will typically offer those services covered in Part A and Part B.
They often will provide coverage for prescription drugs, dental, vision, and hearing.
If you have a Part C plan, will you still need to pay for Part B?
Yes, you will.
Medicare Part D
This plan will cover prescription drugs.
Medicare creates a tier list for drugs.
Higher tiers will typically cost more than the lower tier drugs.
Begin planning now to make enrollment easier.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Think Advisor (July 31, 2018) “Essential Medicare Facts & Penalties Advisors Should Know on One Page”