Better start thinking about Medicare
For years, Medicare and Social Security ran hand in hand. You turned age 65, you collected Social Security, and enrolled in Medicare. Now, however, since the age for full Social Security benefits has been increasing (For example if you were born in 1956, full retirement age is 66 and 4 months), it is easy to overlook Medicare enrollment. Medicare enrollment age is still 65 and if you miss your Initial Enrollment Period, you could pay a penalty premium for the rest of your life!
Your Initial Enrollment Period begins 3 months before the month of your birthday, the month of your birthday, and 3 months after the month of your birthday. If you miss enrolling during this time, you will pay lifetime penalties.
What complicates matters is if you are still working and have coverage through your employer. If so, you want to make sure you properly enroll in Medicare even though you have coverage through your employment, so you can avoid the lifetime penalties.
Another issue to be aware of enrolling at 65, you will need to make arrangements to pay the premium if you are not simultaneously collecting Social Security. The premium is for Part B of Medicare which is the Doctors coverage. In 2022, the premium is $170.10 per month, but depending on your income it could be as high as $578.30 per month.
One last item to consider is that traditional Medicare does not cover prescription drugs. To add drug coverage, you will need to sign up for Part D, which is an additional monthly premium.
Medicare Advantage plans may also be an option for you.
Turning 65 in 2022, then just give us a call for a free consultation on your options and how to avoid lifetime penalties!
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