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Signing up for Medicare: What you Need to Know
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Whether you need to sign up for Medicare, and how to go about doing so, depends on the type of coverage you select and whether you collect Social Security benefits prior to becoming eligible for Medicare.
Medicare Part A and Part B
If you are receiving Social Security benefits before you turn age 65, no sign-up is required for Medicare Part A or Part B. Part A is basic hospital insurance, Part B helps to pay for medically necessary services such as doctor visits or outpatient care. You automatically become eligible on the first day of the month you turn age 65. In most instances, your Medicare card arrives in the mail three months before your 65th birthday. If you keep the card, your premiums for Part B (there is no premium for Part A) will be deducted automatically from your Social Security check.
When You Wait
If you receive medical insurance from another provider (such as your employer or a partner's employer), you can wait to sign up for Medicare. To avoid paying a higher premium, you will be required to enroll during the eight-month period that begins during the month your employment ends or the group health coverage ends, whichever is first.
If you did not sign up for Part B when you first became eligible and you do not have employer-based coverage, there may be a late enrollment penalty when you do sign up.
Medicare Part C and Part D
Both Medicare Part C, also known as Medicare Advantage, and Part D, which is prescription drug coverage, are provided by private insurers whose plans are approved by Medicare. You can sign up for Medicare Part C when you first become eligible for Medicare. You can also sign up between January 1 and March 31 or between November 15 and December 31 each year. If you sign up toward the beginning of the year, you can't join or switch to a plan with prescription drug coverage unless you already had Medicare Part D, the prescription drug plan. If you sign up toward the end of the year, your coverage will begin January 1 of the following year.
You can join Medicare Part D when you initially become eligible for Medicare or between November 15 and December 31 of each calendar year. You typically can join Part C or Part D by filling out a paper application, calling the plan or enrolling online.
It may be in your best interest to familiarize yourself with Medicare's rules to make sure that you capitalize on the benefits available to you.
© 2010 Standard & Poor's Financial Communications. All rights reserved.
© 2010, Kelly Ruggles, Spokane, WA. Web site
Kelly C. Ruggles, Spokane, WA. is a fee-based financial planner located in Spokane.
Kelly C. Ruggles, Spokane, WA. President of American Reliance Group, Inc., a registered investment advisor.
Kelly Ruggles, Spokane, WA. is the author of "The Financial Playbook" for Retirement
Kelly C. Ruggles, Spokane, WA. Does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions.
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