Enrolling in Medicare can be so confusing. You are bombarded with flyers, phone calls, and e-mails saying PICK ME, PICK ME! One thing is for sure, you will not forget your 65th birthday is right around the corner. The main question about Medicare…Where do I even begin?
First off, who qualifies for Medicare?
- If you are 65 or older and paid Medicare taxes for at least 10 years
- Under 65 and have been deemed disabled for 24 months
- Diagnosed with end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS, also known as Lou Gehrig’s disease)
If any of these apply to you, you qualify for Medicare Parts A and B.
When should you enroll? The Initial Enrollment Period is the 7 months around your 65th birthday; 3 months before, the month of, and 3 months after. During this time, you need to apply for Medicare. You are automatically enrolled in Part A, but you MUST apply for Part B if you wish to enroll. Not enrolling when you should, will result in a lifelong penalty…It’s FOREVER. (Curious about Medicare Part A and B see article #2).
Ok so, HOW do you enroll? There are 3 ways to enroll:
- Online @ ssa.gov. This is typically the most convenient and fastest method for people.
- Schedule a phone appointment by calling: 1-800-772-1213.
- Make an appointment at your local Social Security Administration office:
- *Beaumont Location:
8455 Dishman Rd. Suite A
Beaumont, TX 77713
- *Port Arthur Location:
8208 9th Avenue
Port Arthur, TX 77642
What if I have company insurance and want to stay on it? You do not have to enroll in Medicare Part A or B, as long as the coverage is deemed credible and aligns with CMS guidelines (see your HR department for this information). However, if you retire or lose this coverage, you have 8 months to apply and enroll without penalty…lots of rules…SO MUCH FUN .
Are you still with me?
How much is this going to cost me? If you or your spouse worked and paid Medicare taxes for at least 40 quarters (10 years), you usually qualify for Part A without a premium. If you have worked less than 30 quarters, the premium is $506/month. If you have worked 30-39 quarters, the premium is $289/month. Uncle Sam would prefer you to work more quarters and pay into the tax system longer but that’s another story for another day…
The standard monthly premium for Part B in 2024 is $174.70/month. Now let’s talk about our favorite Aunt with a mustache- IRMAA (Income-Related Monthly Adjustment Amount). If your income is above a certain threshold, you will pay an additional amount in addition to the standard premium. The adjustment is based on your Modified Adjusted Gross Income from your tax return 2 years prior. If your income is lower today than 2 years ago and you want to pay a lower premium, please discuss this with the Social Security Administration. See chart below.
. For example, your Medicare Part B premium in 2024 will be based on your taxable income from 2022.
Still have questions? Call or come by in person. We would be happy to help you navigate this twisted web of Medicare and all the things that go with it!
Your favorite disclaimer: By reading this post, you accept that this is not advice for you – no, not everything is all about you. It is rather awesome and entertaining information. If you want it to be about you, contact us and you are priority #1…or 2 or 3 if you call during lunch. Also, if you come by, skip the coffee offer – it’s terrible.