Turning 65 & Medicare
You have many decisions to make regarding Medicare when you turn 65, especially if you have other health insurance. It’s a good idea to start learning about your choices ahead of time.
If you are still working at age 65 you may want to touch base with your benefits manager for your employer sponsored health insurance. It is possible for your employer insurance and Medicare to work together but, sometimes it is better to take full Medicare.
Questions to ask your benefits manager:
How would my health insurance change if I enrolled in Medicare?
How much is deducted from my paycheck for my employer health insurance?
Do I have creditable coverage through my employer?
This information will help you decide what is best for you. You may want to enroll in Medicare Part A, Part B or both. Or you may want to delay enrollment altogether.
Medicare Part A (hospital coverage): You earn premium free Part A by paying into the Medicare program through payroll deductions. You qualify if you or your spouse contributed to Medicare for at least 10 years. You can no longer contribute to the HSA. However, you can continue to use the funds for qualified medical expenses.
Medicare Part B (doctor and outpatient coverage): The government charges a monthly premium. For 2020 the monthly premium is $144.60. Most individuals pay the standard Part B premium, but individuals with higher incomes may pay more. For incomes higher than $87,000 (filing individually) or $174,000 (filing jointly) please see the governments Medicare website . Some people who work past 65 and have employer coverage delay enrolling in Part B to postpone paying the premium. You can sign up later using a Special Enrollment Period without any late enrollment penalties. However, if your employer plan is an HSA you could be subject to penalties when it comes to Part D (prescription coverage). You should check with your employer to see if your plan is creditable. Creditable coverage means that your coverage meets a minimum set of qualifications.
At Creekstone, we offer a Medicare educational event called Medicare 101. We review the basic parts of Medicare, enrollment timelines, and answer any questions you may have. If interested in learning more please contact Bud Fassnacht at 740-967-0210 ext. 4 or at Bud@creekstonebenefits.com.
-Written by Penny Hall