When can I sign up for Medicare?
You can generally sign up for Medicare during a 7 month period of time which includes 3 months before you turn 65, the month you turn 65 and the three months after you turn 65. You may also get Medicare Part A if you are disabled, have end-stage renal disease or amyotrophic lateral sclerosis (ALS). You must be a United States citizen or a legal permanent resident for at least 5 years.
I’m turning 65 soon but still working. Do I need to sign up for Medicare, or can I stay on my employer’s health insurance?
That depends. If your company has over 20 employees, or if your covered under your spouse’s insurance and that company has over 20 employees then the employer’s health Insurance can be your primary insurance. However, if the number of employees is under 20, then Medicare will generally be your primary coverage, and you will need to sign up for both Part A and Part B
What if I don’t want to sign up for Part B?
Well that may not be a good idea. Again, if you have employer coverage with a company that has over 20 employees, you may be able to wait to sign up for Part B until you retire. However, if you are retiring and/or have health insurance through an employer that has under 20 employees, and decide to not enroll in Part B, you will be subject to a late enrollment penalty. You will pay this penalty as long as you have Part B. Your Part B premium may go up 10% for each full 12-month period of time that you could have had Part B but didn’t sign up for it.
When is Medicare open enrollment?
Open enrollment period or annual enrollment period(AEP) runs from October 15 to December 7. During this time, you have the chance to make changes to your coverage. During this time, you can switch from Original Medicare to a Medicare Advantage Plan or vice versa. You can also switch from one Medicare Advantage Plan or from one Medicare Part D (prescription drug) plan to another.
I heard I can change my Medicare Advantage plan in January if I wanted. Is that true?
From January 1 to March 31 you will have a chance to change to a different Medicare Advantage plan if you do not like the one you currently have. Think of it as a one time “do-over.” You can generally only switch plans one time during this period, so make sure you know what your plan covers. Also you can use this period to drop your Medicare Advantage Plan and return to Original Medicare (Part A and B). You cannot switch from a stand-alone Part D drug plan to another one or go from Original Medicare to a Medicare Advantage Plan.
What’s the difference between a Medigap and Medicare Advantage plan?
A Medigap or supplemental policy is for someone who has Original Medicare (Part A and B). You cannot have both a Medigap and Medicare Advantage plan at the same time. A Medigap policy helps to pay for some of the out of pocket expenses that you will have under Original Medicare such as deductibles, copayments , coinsurance and other costs. There are different Medigap policies you can choose from and they are identified by a letter. You can see the different plans here. A Medicare Advantage plan is an alternative to Original Medicare. These plans must provide the same benefits as Original Medicare but also provide additional benefits such as prescription drug, dental and vision coverage. You will also pay your part B premium if you choose a Medicare Advantage plan. You may also pay a monthly premium for your Advantage plan unless you are able to choose one of the $0 premium plans.
I already have a term life policy through work. Is that enough for my family?
Maybe. Depending on your particular circumstances and financial needs, it is possible. The best thing to do is sit down, go over some basic information about your specific situation and then see if you have enough insurance to take care of your family and loved ones in the event of your passing. You generally have two choices, term or whole life. You can get a little more info here.
Do I really need a final expense (burial) policy? I already have life insurance.
Well that depends on your situation. What happens if you “outlive” your life insurance policy? There are two basic “types” of life insurance policies. Term and Whole life. A term life policy generally has a time when it will come to an “end.” There is a set term that the policy lasts for, such as 10 years, 20 years, etc. At that time, you can usually choose to extend it, but it does tend to go up in cost substantially. If you do not extend the policy, it is finished. Do you have enough money set aside to be able to pay for your funeral, medical bills or other needs that your family will have? If not, a final expense policy that could cover these costs can be a good idea. Sitting down and discussing your particular situation and needs is a great way to figure out if this is right for you.