When to sign up for Medicare?

[Mack]

It is important to sign up for Medicare when you first become eligible to avoid penalties later. The enrollment period is 7 months and begins on the day of the month 3 months before the month of your 65th birthday and ends at the end of the month 3 months past the month of your 65th birthday.

In other words if you turn 65 on July 14th this year your initial enrollment period begins on April 1st and ends on October 31st.

Again, it is important to sign up during this period or be subject to penalties in the form of higher premiums when you finally do sign up.

 

[Mack]

Already receiving Social Security at 65

If you are already receiving Social Security when you reach age 65 then you do not have to apply for Medicare, you will be automatically enrolled and your Medicare card will be mailed to you. You can elect to decline Part B at this time if you choose.

There are special cases and rules regarding late sign up, if one is considering not signing up when first eligible it would be wise to check with the Social Security office.

 

[gregl]

I am still working. Do I need a Medicare?

Even if you continue to work after 65, you should sign up for the Part A – it may help you to cover some costs not covered by the employer group plan. It is free for most of the people. However, the Part B is optional and a monthly premium is required. Does it make sense to enroll into Part B if you are still working and covered under employer group health insurance policy (EGHP)?

Neither Medicare nor EGHP cover all health services. Your decision should take into account the following factors:
- Services provided by both insurances
- Cost of Part B and the EGHP
- Which insurance will be the ‘primary payer’?
- Are other family members covered by the EGHP?
- By signing Part B, you’ll trigger your 6-month Medigap Open Enrollment Period

If you didn’t take Medicare Part B when you were first eligible because you or your spouse (of any age) were working and you had EGHP through your or your spouse’s employer or union, you can sign up for Medicare Part B during a Special Enrollment Period:

- Anytime you are still covered by the employer or union group health plan through your or your spouse’s current or active employment, or
- During 8 months following the month the employer or union group health plan coverage ends, or when the employment ends, whichever comes first

Special Enrollment allows you to delay the Medicare Part B enrollment without paying higher premium. Notice, that only employee coverage can be used to defer Plan B; neither COBRA, nor retiree coverage can be used to defer Plan B.

 

[gregl]

What if I didn’t sign up for Medicare during the Initial Enrollment Period?

If you didn’t sign up for Medicare Part A or Part B during the Initial Enrollment Period (7-month period that begins 3 months before you turn 65), you may sign up during the next General Enrollment Period. This period runs from January 1 through March 31 of each year. The coverage will start on July 1 of the year you sign up.