Turning 65 and Medicare 9
This article is going to answer a question that we see a lot with clients. I am turning 65, but I get my current insurance through my retirement. How do I proceed with my Medicare options?”
We will cover many of the same topics with this question as we did with our last five blog entries.
The first thing we always want to know is whether your current coverage will still be an option. Often times companies do not want to continue carrying the legacy cost of a past employee. Therefore, they will discontinue coverage once you become Medicare eligible. This makes things really easy. We will want to look at your needs and wants in a plan and find the plan that fits those in your local market.
If your coverage is going to stay, we will want to do a cost/benefit analysis to determine where you can get the best coverage for the least amount of money. We are going to want to know the cost of your plan moving forward. Sometimes your monthly premiums will change once you become Medicare eligible. We will also want to know how much liability your plan will have. This is how much risk you have each year. We will want to know the deductible and out of pocket maximum.
Unlike when you are working and have coverage, you are going to need to be enrolled in Medicare Part B. Just because you have coverage does not mean that you do not have to enroll in Medicare Part B. If you are collecting your Social Security check, Social Security will automatically enroll you into Medicare Part B and mail you your Medicare Card three and half months prior to your Medicare start date. If you are not collecting your Social Security check you will need to enroll in Medicare through Social Security. How to do so was covered in one of our earlier blogs. If you fail to enroll in Medicare Part B when you are first eligible there will be a penalty.
As far as drug coverage goes, if you choose to stay on your retirement plan you will want to check and make sure that the drug coverage is creditable. So if you were to lose this coverage in the future there would not be a Part D penalty.
Most of the time when we meet with clients that have coverage through their retirement they end up leaving that coverage because they could get better coverage for less money.
One case in which clients often stay on their retirement coverage is if they are insuring a younger spouse as well. Often times they end up overpaying for their coverage but underpaying for their spouse. So it all works out in the end. When the spouse becomes Medicare eligible we often end up taking both people off the retirement coverage.
Meeting with one of our agents from Sun Coast Legacy Advisors can help you answer these questions and more. We recommend that if you are getting ready to turn 65 that we get together for our Meet and Greet appointment about 5 to 6 months before you are getting ready to turn 65. We will be able to educate you on your options for coverage and present you with a timeline of key dates and benchmarks leading up to starting Medicare at 65.
Turning 65 can be simple and easy. Sun Coast Legacy Advisors is here to help you through the process. Email or Call to schedule your appointment today.