Modern Estate Planning Blog

If you are approaching retirement, you may worry about paying for medical expenses once you leave the workforce. The good news is the United States has a health insurance program for individuals 65 and older. The program is called Medicare. Read on to learn more about it.

What Is Medicare?

Medicare is a federal health insurance program primarily designed for individuals aged 65 and older. It also covers certain younger people with qualifying disabilities and those with End-Stage Renal Disease (ESRD) or Amyotrophic Lateral Sclerosis (ALS).

Established in 1965, Medicare aims to ensure that seniors and other eligible individuals have access to affordable and comprehensive health care.

Medicare Coverage Basics

Medicare is divided into four parts, each providing different types of coverage:

Part A: Hospital Insurance

• What it covers: Surgeries, lab tests, inpatient hospital care, skilled nursing facility care (limited), hospice care, and some home health care.
• Costs: Most people don't pay a premium for Part A if they or their spouse have paid Medicare taxes for at least 10 years. They may have to pay deductibles and coinsurance for services.

Part B: Medical Insurance

• What it covers: Doctor visits, outpatient care, preventive services, durable medical equipment, and some home health care.
• Costs: Part B requires a monthly premium, which adjusts based on income. Enrollees will also pay deductibles and coinsurance for services.

Part C: Medicare Advantage

• What it covers: Offered by private companies, Medicare Advantage plans include all Part A and Part B benefits, and often Part D. These plans may also offer additional benefits, such as vision, dental, and wellness programs.
• Costs: Premiums vary by plan, and there may be additional out-of-pocket costs.

Part D: Prescription Drug Coverage

• What it covers: Helps cover the cost of prescription drugs.
• Costs: Enrollees pay a monthly premium, and costs can vary depending on the plan and the drugs covered.

How Old Do You Have to Be for Medicare?

The typical age when people become eligible for Medicare is 65. Individuals can sign up for these benefits during a seven-month initial enrollment period that begins three months before they turn 65. (These seven months include the month of their birthday and end three months after they turn 65.) Keep in mind that you may incur fees if you wait to enroll in Medicare until after your seven-month initial enrollment period.

Some exceptions to the age requirement exist. People under 65 can qualify if they have received Social Security Disability Insurance (SSDI) benefits for 24 months. Individuals of any age with permanent kidney failure requiring dialysis or a kidney transplant can qualify for Medicare. Those diagnosed with ALS are eligible for these benefits regardless of age, and they are enrolled in the program as soon as they begin receiving SSDI benefits.

How to Enroll

If you’re already receiving Social Security benefits when you turn 65, you will likely be enrolled in Parts A and B automatically. If you’re not receiving Social Security benefits, you must sign up for Medicare yourself. You can enroll online, over the phone, or by visiting your local Social Security office.

To sign up for Part C or a Part D plan, you must first enroll in Parts A and B. Enrollment in Part C or a Part D plan is done through private insurers, and it typically occurs during specific enrollment periods.

Costs and Coverage Considerations

Medicare is not entirely free, and there are various costs associated with the different parts. Make sure you understand the premiums, deductibles, copayments, and coinsurance to avoid unexpected expenses. Additionally, some services and items, such as long-term care, most dental care, and eyeglasses, are not covered under Original Medicare (Parts A and B), so you might need additional coverage.

Learn More

Medicare provides crucial health coverage to seniors and other eligible individuals. Understanding the basics and the eligibility requirements can help you make informed decisions about your health care as you approach retirement age.

Enlisting the help of an experienced elder law attorney near you can make your transition to Medicare easier. An attorney can discuss your specific situation and your options with you.

For additional reading on Medicare, check out the following articles:

• Part D Coverage 2024: Prescription Drug Plans
• Medicare Advantage Plans Often Wrongly Deny Necessary Care, Study Finds
• Know Your Options Before Signing Up for Medicare
• Getting Medicare Disability Coverage When You Are Not Yet 65
• How to Choose a Medicare Supplemental Insurance: Medigap

For more personalized guidance on navigating Medicare and understanding your options in California, contact Chubb Law Firm PC today at (916) 241-9661.

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