Medicare Basics
Medicare is health insurance for people 65 or older, certain people who are under 65 with disabilities, and people of any age with End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or kidney transplant.)
It is important to sign up for Medicare coverage during your Initial Enrollment Period, unless you have other coverage that is similar in value to Medicare (like from an employer). If you don’t, you may have to pay an extra amount, called a late enrollment penalty.
Let’s take a closer look at the steps to enroll and parts of Medicare.
Parts of Medicare
Part A - Hospital Coverage
Part B - Medical Coverage
Part C - Medicare Advantage
Part D - Prescription Drug
When can you enroll in Medicare?
Are you turning 65?
When you turn 65, you have a 7-month Initial Enrollment Period (IEP) for Medicare. This includes the month you turn 65, the three months before and the 3 months after. If your birthday is on the first of the month, your IEP begins and ends one month earlier.
Are you working past 65?
Although you have insurance coverage through an employer plan, yours or through a working spouse, you have Medicare decisions at age 65. Your IEP still happens at age 65, even if you continue to work. You may be able to delay your Medicare enrollment, depending on the employer coverage you have. Your employer’s benefits administrator can help you understand your options and to determine if your coverage is “creditable”.
You have Medicare insurance options
You can go with Original Medicare or get additional coverage.
Original Medicare, Parts A & B helps you pay for doctor visits and hospital stays, but it doesn’t cover everything.
Many people select additional insurance coverage by enrolling in one or more private Medicare or Medicare-related plans, including:
Medicare Supplement Insurance plans
Medicare supplement insurance plans, also called Medigap, help pay some of the out-of-pocket costs not paid by Original Medicare.
Prescription Drug plans (Part D)
Medicare prescription drug plans, Part D, help pay for prescription medications that are prescribed by a doctor or health care professional.
Medicare Advantage plans (Part C)
Medicare Advantage plans, Part C, combine Part A, Part B, and often Part D, Prescription drug coverage. Additional benefits, like coverage for routine vision and dental care, may be offered on some plans.
Steps for Medicare Enrollment
Step one
Enroll in Original Medicare Part A (Hospital) and Part B (Medical)
Step two
Explore your additional coverage options, Option 1 or Option 2
Option 1
Medicare Part D Plan
- Helps pay for prescription drugs
- And, you can also add:
- Medicare supplement insurance (Medigap)
- Helps pay some out-of pocket costs not paid by Original Medicare
Option 2
Medicare Advantage Plan (Part C)
- Usually includes prescription drug coverage (Part D)
- May offer additional benefits like dental and vision coverage
