Medicare Basics and the ABCs
There will be one person entering Medicare every 8 seconds every day for approximately the next 10 years. Most Boomers feel an urgency to learn all their Medicare options. After all, they know that one wrong move can jeopardize the retirement savings they worked so hard to build. So let’s cover the basics and simplify the process. Here are a few things YOU need to know.
1. Enroll on time.
Medicare is automatic for those turning 65 when one is already receiving a Social Security check. If you aren’t receiving your Social Security check or working full-time with employer benefits from either your or your spouse’s work, then you will want to enroll in Medicare Parts A and B. This can be done online at https://www.ssa.gov/medicare/sign-up Those working full-time with employer benefits may want to delay enrolling in Medicare Part A and Part B until they retire or lose their benefits for any other reason.
2. Medicare is NOT free.
Medicare covers a lot. Unfortunately, there’s a cost associated with Medicare Parts A and B. Your tax dollars go toward Medicare, but the premium for Part A is typically free for most people who have worked and paid Medicare taxes for at least 10 years. However, if you didn’t pay enough Medicare taxes, you may have to pay a monthly premium for Part A, which can be either $278 or $505 depending on your situation. The premium for Medicare Part B depends on your income. In 2024, the standard monthly premium for Part B is $174.70, though some people with higher incomes may pay more. The 2024 Medicare Part A (hospital) deductible is still $1,600— not once a year, but every 60 days or 6 times a year. The 2024 Medicare Part B deductible has increased to $240 once a year. Medicare pays 80% of the Medicare-approved amount after you meet your deductible, and you pay the remaining 20% (oftentimes, individuals purchase supplemental insurance, sometimes called Medigap, to cover this 20% “gap”).
3. Learn Medicare’s “alphabet soup.”
All right, settle down. Class is in session. It’s time to review the various parts of Medicare. Medicare Parts A and B cover hospital, medical, and provider expenses. Medicare Part C, known as the Medicare Advantage plans, is another way of receiving your Medicare benefits. Part D is Medicare Prescription Drug plans. You can enroll in these as a stand-alone plan through Original Medicare or bundled with a Medicare Advantage plan.
4. Medicare covers a lot.
Medicare Part A covers in-patient hospital, skilled nursing facility care, home health, and hospice care. Part B covers physicians’ services, outpatient surgery/services, lab/X-rays, MRIs, durable medical equipment, preventative services, etc.
Need Help with Enrolling?
Readers, if you need help with Medicare, you may call your local Social Security office directly. Most Social Security direct phone numbers can be located by searching online for that specific office’s 800-number or calling Social Security’s national 800-number (800-772-1213). Chapter 1 of Toni’s Medicare Survival Guide Advanced Edition explains various ways of enrolling in Medicare in detail. You can also call the Toni Says Medicare hotline at 832-519-8664 or email [email protected] for more Medicare help.
Toni Says: Remember, with Medicare, what you don’t know WILL hurt you!
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Originally published June 11, 2024
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