When you’re turning 65 or enrolling with Medicare, it can seem like a very complex process. There’s a lot of terminology involved that you may not understand. There are a lot of different scenarios that may be involved in completing your enrollment. Actually, it’s not as complicated as it seems.
If you’re going to turn 65 in the next 12 months, there are just a few relevant factors you need to know about. The place you are working is relevant to your enrollment. You’ll need to understand how to avoid penalties for non-enrollment, but it’s easy to avoid them. I’ll explain these and other factors that you need to pay attention to.
What to Know if You Are Turning 65 and Still Working
If you’ve been working for a large employer—a company that has more than 20 employees— and you plan on still working, there’s really nothing you need to do. Let’s suppose you are going to continue working till you’re 67, 68, 70 or whenever. You’re going to be covered by that large employer’s plan, assuming it’s fully credible coverage, which is normally the case.
There’s really nothing you need to do until you are ready to retire. Therefore, when you’re past 65 and you’re within three or four months of retirement, then you want to submit your application for Medicare Part A and B to be effective on the date of your retirement.
Your retirement means the end of your large employer health insurance coverage. You can then enroll in Medicare without a penalty.
What to Know if You Are Ready to Enroll in Medicare at Age 65
Here is a different scenario. Let’s suppose you are just aging in—meaning that you are reaching the age when you can enroll in Medicare—and you’re working for a small employer or you are already retired. Or maybe you are a spouse and you want to get regular Medicare coverage.
There is a seven-month period during which Medicare allows you to enroll. It is three months before your birth month, the month of your birth month, and three months after that. You must enroll in this seven-month period to avoid a penalty or any complications.
I would highly recommend that you apply to have your Medicare coverage become effective the first day of your birth month, the month you turn 65. Start your application process about 90 days before your birth month.
There is a little technicality here—your Medicare could become effective one month before, so with a July 1 birthday, your Medicare coverage could become effective on the first of June.
Advice for the Person Who Is Already Drawing Social Security Payments
If you’ve been drawing social security income and you’re 64 years of age, your Medicare enrollment will happen automatically.
If you choose not to take Social Security income before you turn 65, you will need to do a manual application that’s very simple to do through the Social Security website.
I know these have been a lot of points I’ve been rattling off real quickly. There’s a lot to understand about Medicare and Social Security and that’s why so many people come to us at MBhealth. We are happy to walk you through all the steps and talk you through the options. Call us at MBhealth: (314) 544-5400.
