By Trish Pearson
Insuring Your Future
Trish Pearson
Many who turn 65 do not feel one bit different from the day before. We keep working and receiving benefits from our employer. There are a few different situations that determine what next steps you should take.
Medicare Part A: Most people are eligible for Part A when they turn 65. Part A covers inpatient hospital expenses. There is no premium, but you must register for the benefit. Even if you’re still on an employer’s plan you should register, as it will make life much easier when you decide to retire and will act as a secondary insurance if you land in the hospital. It will pick up the cost where current insurance leaves off after you pay the deductible of $1,492.
The best route to register is to go to the Social Security at ssa.gov and set up an account. This will be your conduit for information on all benefits going forward, including Monthly Social Security benefit eligibility as well as medical benefits. Make sure you record the username and password in an accessible place for future reference – unless you enjoy being on hold for hours on end.
Medicare Part B: Medicare Part B is optional. If you are still on an employer’s insurance, compare the benefits and cost. Very often the group health plan benefits are less and the cost to the employee more than the benefits provided by Medicare and the supplement or Medicare Advantage plans. The standard premium for Medicare Part B is $148 per month. That is the baseline to use when comparing with an employer’s plan.
What if your spouse is not yet 65 but you want to retire? This situation occurs frequently. If the person carrying the benefits is eligible for Medicare but the spouse is not, then there are some factors to consider.
Is the spouse able to apply for benefits through their employer? If not, then they will have to purchase insurance through the health exchange. There are a variety of plans offered, and depending on income, they might be eligible for an advanced premium tax credit, thereby reducing the monthly premium. Many people mistakenly think they have to remain at work in order to receive benefits for their spouse or family. This s not always the case.
Medicare Part D covers prescription drug plans. These are offered by a variety of insurance companies. It is a requirement of Medicare that each enrollee have some kind of prescription drug plan. These are offered as standalone plans or as part of a Medicare Advantage plan.
The most important thing to remember is that at some point you will retire and need to go on Medicare. The process will be much smoother if you enroll in Medicare Part A upon turning 65. It is painless and free.
Trish Pearson is a licensed independent insurance agent and certified long term care specialist. Contact her at 203-640-5969 or trishpearson281@gmail.com.