Is it Mandatory to Sign Up for Medicare at Age 65: Let's Explore Turning 65 Requirements, Social Security Benefits, and what happens if you are still working at Age 65
When you turn 65 and become a new retiree, one of the first things you may think about is whether or not you need to sign up for Medicare. The answer, unfortunately, is not always black and white, and if you delay Medicare, this may or may not cause problems in the future.
In this blog post, we’ll explore some factors that go into making that decision. We’ll also look at when you need to sign up for Medicare when you first become eligible for Original Medicare to avoid penalties.
So, read on to learn more!
Do You Have to Sign up For Medicare if You Are Still Working or can I Delay Enrollment?
New To Medicare: When Does Medicare Start
When you or your spouse become eligible for Medicare, you will have a lot of decisions that will need to be made very quickly. If you are still working and signed up under a health plan through your employer, you may not need to sign up for part of Medicare when you turn 65.
Medicare Part A
Medicare Part A does not cost you anything as you have already paid into this coverage while working. Part A is free for most Medicare beneficiaries. You should be automatically enrolled in Medicare Part A when you turn 65.
Medicare Part B
In general, you will only need to sign up for Medicare Part B if you are not enrolled in a group health plan through your employer or if your employer’s insurance is not considered to be “creditable coverage.”
Creditable coverage is defined as insurance that is at least as good as Medicare Part A coverage and Medicare Part B.
Faith-Based Health Sharing Networks
Some religious employers provide group health benefits through a faith-based health-sharing network to cut costs and align their church health insurance program with their religious beliefs. In this instance, Medicare beneficiaries must sign up for Medicare Part A and Part B of Original Medicare. Failure to enroll in Medicare at age 65 while enrolled in a faith-based health-sharing network would result in Part D and Part B late enrollment penalties.
If you have credible coverage, you can delay your enrollment in Medicare Part B (outpatient health services) and Medicare Part D prescription drug plans without paying the penalty.
However, you should remember that delaying enrollment may result in higher premiums if you decide to enroll in Medicare later on without qualified group health coverage.
Losing Your Group Health Benefits
Once Medicare beneficiaries decide to retire and lose their group health benefits, they will qualify for a special enrollment period to sign up for Medicare.
If you are unsure whether your employer’s insurance is considered creditable coverage, you can contact your benefits administrator or the insurer. You can also find more information on the Centers for Medicare and Medicaid Services website.
Suppose you are still working at 65 and have health insurance through your employer. In that case, you will not need to sign up for Medicare unless your employer’s insurance is not considered creditable coverage.
Can I Get Social Security and Not Sign up for Medicare Part B?
You may have worked hard your whole life, and now that you’re finally retired, you’re looking forward to collecting social security and enjoying your golden years. But then you start getting letters about the need to enroll in Medicare. Can you get social security and not sign up for Medicare?
The short answer is yes, but there are some essential things to remember. If you decide not to enroll in Medicare when you’re first eligible, you may have to pay a late enrollment penalty.
This means your Part B and Part D premiums could be impacted for the remainder of your life.
In addition, if you later decide to enroll in Medicare, you may have to wait for a general enrollment period. And even if you do sign up for Medicare, you may still be responsible for some out-of-pocket costs such as deductibles, coinsurance, and copayments.
So while you can technically get social security without enrolling in Medicare during your initial open enrollment period, it’s essential to think carefully about whether or not that’s the right decision for you.
What is Social Security
Social Security is a government-sponsored program that provides financial assistance to older Americans, as well as to those who are disabled or have dependents. The program is funded by payroll taxes, and it currently provides benefits to about 60 million people.
Social Security benefits are based on a worker’s earnings history, and they can be used to supplement retirement income, pay for healthcare expenses, or provide financial assistance in the event of disability or death.
For many Americans, Social Security is an essential source of income, and it plays a vital role in ensuring economic security in retirement.
How to sign up for Social Security
To sign up for Social Security, you must be at least 62 years old and have worked in a job covered by Social Security for at least 10 years. You can start receiving benefits as early as 62, but your payments will be reduced if you begin before your full retirement age, which is 66 or 67, depending on when you were born.
To sign up, visit the Social Security Administration’s website or call their toll-free number at 1-800-772-1213.
When you’re ready to sign up, you must provide some basic information, including your name, date of birth, address, and Social Security number. You’ll also need to have your bank account information handy so the SSA can set up direct deposits for your benefit payments.
Once you’ve provided all the required information, you can start receiving your Social Security benefits.
What happens if you don't sign up for Medicare at age 65?
You may be penalized: Is Medicare Mandatory
If you’re not already receiving Social Security or Railroad Retirement benefits when you turn 65, you’ll need to sign up for Medicare. You may be penalized if you don’t sign up for Medicare at age 65.
You can sign up for Medicare three months before your 65th birthday, your birthday month, or three months after your birthday. If you wait to sign up for Medicare after your 65th birthday, you may have to pay a late-enrollment penalty.
You may qualify for a retiree health plan from your prior employer. It is essential to compare the costs and coverage of Original Medicare with a Medigap policy or Medicare Advantage plan.
Before you decide on delaying Medicare enrollment, please call one of our licensed insurance agents to review your Medicare options to ensure you are making the right decisions.
We recommend checkout out our articles: Checklist when preparing for Medicare.
You may have to wait for coverage
If you don’t enroll in Medicare at 65, you may have to wait for coverage. Here’s what you need to know.
Medicare is a health insurance program for people 65 or older and people with specific qualified disabilities. If you don’t sign up for Medicare Part B coverage when you’re first eligible, you may have to pay a late enrollment penalty.
You can sign up for Medicare during your Initial Enrollment Period, which starts three months before your 65th birthday, includes your birthday month, and ends three months after your birthday. If you don’t sign up during this seven-month period, you may have to wait until the next Medicare General Enrollment Period, which happens every year from January 1 to March 31.
If you wait to enroll in Medicare, you may have to pay a late enrollment penalty. This is an extra 10% added to your Part B premium for each 12-month period that you could have had Part B but didn’t sign up for it.
You may also have to wait for coverage to start. If you sign up for Medicare during the General Enrollment Period, your coverage will begin on July 1 of that year.
Suppose you’re already getting benefits from Social Security or Railroad Retirement Board. In that case, you’ll be automatically enrolled in Medicare Parts A and B starting the first day of the month you turn 65. If you don’t want Part B, you need to opt-out
Who is Eligible for Medicare?
- People who are 65 years or older
- People under 65 with certain disabilities
- People of any age with End-Stage Renal Disease (ESRD)
To be eligible for Medicare, you must be a U.S. citizen or a legal permanent resident of at least five years.
When can you Enroll in Medicare Part A and Part B Health Coverage?
When you are 65 years or older
If you are 65 years or older, you can sign up for Medicare. You can do this online, by phone, or in person.
When you have End-Stage Renal Disease (ESRD)
If you have End-Stage Renal Disease (ESRD), you can sign up for Medicare three months before your dialysis treatments start. You’ll need to provide your doctor’s certification that you have ESRD and proof that you’re receiving dialysis treatments.
Are there any Enrollment Penalties for delaying signing up for Medicare?
Medicare Part B Penalty
If you don’t sign up for Medicare Part B when you’re first eligible, you may have to pay a late enrollment penalty. You’ll have to pay this penalty for as long as you have Part B.
Your monthly premium for Part B may go up 10% for each 12-month period that you could have had Part B but didn’t sign up for it. Also, you may have to wait until the General Enrollment Period to sign up for Part B.
Medicare Part D Penalty
If you do not sign up for Medicare Part D when you are first eligible, you may have to pay a Part D late enrollment penalty. The amount of the penalty depends on how long you went without drug coverage. You will have to pay the penalty for as long as you have Medicare Part D coverage.
List of Special Enrollment Periods for Medicare Part B and Part D
Special Enrollment Periods (SEPs) are times when you can sign up for Part B (Medical Insurance) and/or Part D (Prescription Drug Coverage) without having to pay the penalty. You may qualify for a SEP if you:
- Are turning 65
- Are you losing health coverage from your employer or union
- Are losing coverage from Medicaid or a similar state program
- Are moving outside of your plan’s service area
- Are you a newly enrolled beneficiary in Medicare Advantage
- Are you a dual-eligible beneficiary who is losing Medicaid coverage
- Are you a dual-eligible beneficiary who is losing coverage from a Medicare Advantage plan
- Are you a PACE program participant who is losing coverage
- Are you an American Indian or Alaska Native
- Are a beneficiary of a Special Needs Plan
- Are a beneficiary of a Demonstration/Pilot Project
If you do not sign up for Part B and/or Part D during your Initial Enrollment Period or a Special Enrollment Period, you may have to pay a late enrollment penalty.
What are the Benefits of Signing up for a Medicare Health Plan?
How Medicare provides health insurance for those Turning 65
Medicare is a government-sponsored health insurance program that provides coverage for those 65 and over. There are four parts to Medicare: Part A, Part B, Part C, and Part D. Part A covers hospitalization, Part B covers outpatient services, Part C is a private health insurance option, and Part D covers prescription medications.
What is Original Medicare Coverage
Original Medicare is a health insurance program administered by the federal government. It is available to all U.S. citizens and legal residents who are 65 years of age or older or who have been receiving Social Security disability benefits for at least 24 months.
Original Medicare has two parts: Part A (hospital insurance) and Part B (medical insurance). You can choose to enroll in both parts, or just Part A or Part B. If you enroll in both parts, you must pay a monthly premium for Part B.
Original Medicare does not cover all medical expenses. You will be responsible for some out-of-pocket costs, such as copayments, coinsurance, and deductibles. You may also need to purchase a separate supplemental insurance policy to help cover these costs.
Medicare Supplement Plan Options
There are many reasons to sign up for Medicare, even if you’re already covered by an employer-sponsored health insurance plan. For one, Medicare provides a wider range of coverage than most employer-sponsored plans, including coverage for hospitalization, skilled nursing care, and hospice care. Signing up for Medicare can help you avoid paying late enrollment penalties.
There are ten different Medigap plans to choose from. However, there are 3 main Medicare supplement plans that Medicare beneficiaries primarily choose from Plan F, Plan G, and Plan N. Plan F covers 100% of Medicare. In contrast, Plan G covers all Medicare costs minus the Part B deductible, and Plan N offers the least benefits but the lowest premiums.
Most Medicare Beneficiaries primarily buy the Medigap Plan G which has been the go-to plan for the past few years.
If you’re considering signing up for Medicare, compare the different Medicare supplement plan options to find the one that best meets your needs.
Medicare Advantage Plan: (Medicare Part C)
There are several benefits to signing up for a Medicare Advantage Plan, including:
- You will have access to a network of doctors and hospitals that have been approved by Medicare.
- You will have coverage for various services, including preventive care, hospitalization, and prescription drugs.
- You will have the peace of mind of knowing that you are covered in the event of a medical emergency.
If you are eligible for Medicare, signing up for a Medicare Advantage Plan is a great way to get the coverage you need.
Medicare Provides Part D Prescription Drug Coverage
If you’re enrolled in Medicare, you’re automatically enrolled in Part A and Part B, which cover hospital and medical insurance, respectively. Part D, however, is prescription drug coverage, and you have to sign up for it separately. Part D is an important benefit, as it helps cover the cost of prescription drugs.
You can delay Medicare Part D enrollment if you’re still working and covered by the group benefits health plan.
How do you sign up for Medicare Benefits?
You can sign up for Medicare three months before your 65th birthday, during the month of your birthday, or during the three months after your birthday.
You can sign up online at the Social Security Administration website, by calling Social Security at 1-800-772-1213, or by visiting a local Social Security office.
What happens if you have Medicare and you also have Group Health Coverage?
Are you Considering Whether or Not to Delay Medicare?
Integrity Now Insurance Brokers is here to help you sign up or delay Medicare without penalty. When your Medicare eligibility date arrives, we will help you select the right plan to meet your needs.
If you are already enrolled in Medicare Part A and you are wondering if should you also enroll in Part B, our Medicare insurance agency is here to help.
Each situation is unique, and we will ensure you are on the right path.”
If you are interested in learning more about our services, please get in touch with one of our Medicare Agents today.
