Seniors: Here's What You Need To Know About Medicare Before Enrolling
April 24, 2023
4 min read
If you're over 65, Medicare is a crticial way to lower your health bills. But 50% of Americans claim they are confused by the plan options in open enrollment. Here's what you need to know ASAP:
Medicare open enrollment is the only time during the year that seniors can change their plan: This includes changes to premiums, cost-sharing requirements, prescription drug coverage, and any other members of your household who are on Medicare. If you don’t have enough money to meet monthly costs or if you want more care options, you may need to change your plan. You can even start seeing new doctors.
Open enrollment runs from October 15 to December 7, 2021 and many seniors are still confused about what they need to do.
What is Medicare?
Medicare is a social insurance program that provides health care coverage to people who are 65 or older, certain younger people with disabilities, and people with end-stage renal disease. It is administered by the US federal and funded partly by payroll taxes known as Federal Insurance Contributions Act tax (FICA), but mostly through general revenues.
What Are the Key Parts?
- Part A (Hospital Insurance) covers care in a hospital. This includes a semi-private room, nursing services, meals, and required medications. Stays in many kinds of hospitals, including critical-access and mental hospitals, are covered by Part A.
It also pays for skilled nursing facility care, some home health care, and hospice care.
Part B (Medical Insurance) covers most medical expenses not paid for by Part A, such as doctors' services, outpatient care, and supplies;
Part C (Medicare Advantage), a private insurance option to receive benefits stated by Parts A and B;
Part D (prescription drug coverage).
Am I Eligible for Medicare?
The official age for Medicare eligibility is 65. You can also qualify for Medicare if you're younger than 65 and have been receiving Social Security or Railroad Retirement Board disability benefits for at least 24 months (also known as meeting the "24-month requirement"). If you're still working, you may be eligible to delay Part B enrollment and buy a private Medigap insurance plan instead. If you already have an employer-sponsored health plan, this may be a good option for you.
What Are Medicare Costs?
Your monthly Part B premium is calculated on your income and the "base amount" of (for 2019). Since most seniors don't pay their Part B monthly premium, the will take it from their Social Security payment. But even if you pay your own premiums, no one will be denied coverage because of an inability to pay for Part B. If you make too much money in a year and have to repay some or all the benefits you received, the may withhold future Social Security payments. The same thing may happen if your estate doesn't have enough money to repay the cost of your care after you die.
What Are the Biggest Changes?
- Medicare Part A premiums increased to per month unless you qualify for premium-.
- Medicare Part B premiums increased to.
- Medicare Part D maximum deductible increased to.
- The Part D coverage gap, or donut hole, is closed.
- The income bracket threshold was increased for inflation in 2021 to for an individual or for couples.
- Treatment and testing of COVID-19 is included in all Medicare plans.
- Medicare giveback checks provide credit per person.
What Are the Biggest Perks to Look for?
Medicare premiums are tax-deductible.
You can deduct some or all of your Medicare premiums when you file your taxes, which reduces your taxable income for the year and saves you money in tax. This benefit is unlimited, meaning there are no limits on how much you can deduct. Your eligibility for the premium tax credit depends on your income and expenses during the year.
You'll get some preventive services.
Medicare Part B covers several preventive health services for cheap to you, including a yearly wellness visit, flu shots, cardiovascular disease screenings, and diabetes screenings. These tools can assist you in better monitoring your health and making smarter decisions for the future, so you don't have to pay for the long-term effects of these health problems.
How Do I Enroll?
You can apply for Medicare online, by mail, or in person at a social security office. You can also call Social Security and sign up over the phone; however, you will not be able to ask the person on the phone any questions about plans.
Because of this, the most important steps you can take are to:
1. Explore your options & decide what you need in your coverage 2. Compare multiple plans 3. Enroll!
