Medicare is a national health insurance program in the United States, begun in 1965 under the Social Security Administration and now administered by the Centers for Medicare and Medicaid Services.
What are the parts of Medicare?
There are different parts of Medicare to help cover specific services:
- Medicare Part A (Hospital Insurance) Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
- Medicare Part B (Medical Insurance)
Part B covers certain doctor’s services, outpatient care, medical supplies, and preventive services. - Medicare Part D (prescription drug coverage)
Helps cover the cost of prescription drugs (including many recommended shots or vaccines).
Medicare Eligibility
You qualify for full Medicare benefits if:
- You are a U.S. citizen or a permanent legal resident who has lived in the United States for at least five years and
- You are receiving Social Security or railroad retirement benefits or have worked long enough to be eligible for those benefits but are not yet collecting them.
- You or your spouse is a government employee or retiree who has not paid into Social Security but has paid Medicare payroll taxes while working.
Younger than 65? You still may be eligible…
You qualify for full Medicare benefits under age 65 if:
- You have been entitled to Social Security disability benefits for at least 24 months (that need not be consecutive); or
- You receive a disability pension from the Railroad Retirement Board and meet certain conditions; or
- You have Lou Gehrig’s disease, also known as amyotrophic lateral sclerosis (ALS), which qualifies you immediately; or
- You have permanent kidney failure requiring regular dialysis or a kidney transplant — and you or your spouse has paid Social Security taxes for a specified period, depending on your age.
Source: https://www.aarp.org
Medicare Costs
Most people don’t pay a Part A premium because they paid Medicare taxes while you working. Everyone must pay a premium for Medicare Part B. In 2021, the Medicare Part B premium is $148.50 per month but this can increase based on your income. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
How do I enroll in Medicare?
When you turn 65, if you are receiving Social Security benefits, you will be enrolled in Medicare Part A, which covers hospital costs, and Part B, which covers doctor visits. If you want Medicare Part D prescription drug coverage you’ll need to enroll yourself — that’s not automatic.
If you’re not receiving Social Security benefits, you’ll sign up through the Social Security Administration website. To avoid permanent penalties, you should do so within the seven-month period around your 65th birthday (which includes the three months before the month you turn 65, your birthday month, and the three months following your birthday month).
Options for Medicare Supplement Plans
There are several ways to protect yourself from the portion that Medicare does not cover. The most popular option is a Medicare Supplement or Medigap plan. The most popular Medigap plans are:
The other option is a Medicare Advantage plan which combines Medicare A + B into one plan and often adds prescription coverage as well.
Why Work With Us?
We are completely independent and work with all the top companies and plans in {city}, CA. We are able to compare all plan options and help you pick the plan that fits your unique needs and preferences.
During our initial consultation, we ask what your preferences are such as doctors, hospitals, budget, etc. These are things that help us determine what specific plan is best for your situation. In addition, we help our clients each year when it comes time to review your plan. We charge nothing for our services, we are compensated directly by the insurance companies and it does not affect the premium you pay.
Call us directly today at (213) 214-2399 for a free consultation or use the online form to get started.