Dear Rusty: I know that when a person turns 65 he or she must enroll in Medicare. I have been informed that the charge for this would be deducted from the Social Security benefit, if it has been claimed. Otherwise, this will be another payment for my medical care, in addition to my existing coverage. Please explain the relationship between the two programs and considerations in timing the claim for the SSA benefit. Signed: Frugal Senior
Dear Frugal Senior: If you are already collecting Social Security benefits you will be automatically enrolled in Medicare about
3 months prior to your 65th birthday but, if not, enrollment can be done by contacting Social Security directly. You must enroll in
Medicare at age 65, unless you have other “creditable” healthcare coverage (such as from an employer) or you will be subject to a late enrollment penalty for enrolling after expiration of your initial enrollment period (your “IEP”). Your “IEP” is a seven-month window which starts 3 months before the month you turn 65 and ends 3 months after the month you turn 65. You should check with your employer to make sure your existing coverage is “creditable” and, if it is, you can delay enrolling in Medicare until such time as that other coverage ends and thus avoid a late enrollment penalty for not enrolling in Medicare Part B during your IEP. When your employer coverage ends, you’ll enter a “special enrollment period” during which you can enroll in Medicare Part B (and Part
D, which is prescription drug coverage) without incurring a late enrollment penalty.
Medicare Part A (hospitalization coverage) is free if you are also eligible for Social Security benefits (you don’t have to be collecting SS, only eligible). Medicare Part B provides coverage for doctors and outpatient services and there is a premium associated with it ($135.50 for 2019). If you have other creditable coverage you can avoid paying the Part B premium by not enrolling during your
IEP. If your existing plan also provides creditable prescription drug coverage, you can also defer enrolling in a Medicare Part D plan until your employer coverage ends, at which time you will have
63 days to take a Part D plan without incurring a late enrollment penalty. FYI, you must be enrolled in Medicare Part A to collect
SS benefits after you are 65 years old, and since Part A is free for anyone eligible for Social Security, there ...
