When you’re turning 65, it’s time to start learning about Medicare. The decisions you make now can affect your healthcare expenses in the future. Here is our guide to Medicare basics for people signing up for Medicare at age 65 in New Jersey.
What is Medicare?
Medicare is the government health insurance program administered by Social Security. It gives health insurance coverage to people with disabilities and people who are 65 and older.
Medicare has four parts. Original Medicare consists of Part A and Part B, which are your hospital and medical insurance. Medicare Advantage (Part C) is an alternative plan type that you can sign up for through private insurance companies. Part D is prescription drug coverage.
Also available are Medicare Supplements, which help cover the costs of out-of-pocket expenses from your Medicare Part A and Part B care. There are ten available plans, lettered A, B, C, D, F, G, K, L, M, and N.
Do You Need Medicare?
It’s not required, but it’s definitely something you need to consider! Most people receive Medicare Part A without paying premiums, so you should sign up for this as soon as you are able to. You have to pay premiums for Part B, but delaying enrollment means you will have to pay a penalty when you eventually sign up.
How Do You Sign Up for Medicare?
You sign up for Medicare through Social Security. You can apply in New Jersey by visiting your local Social Security office, applying online at Social Security’s website, or by calling.
When Do You Sign Up for Medicare?
You can first enroll three months before the month of your 65th birthday. This is the beginning of your Initial Enrollment Period, which lasts for seven months. If you enroll during these three months, coverage begins on the first day of your birthday month (or the first day of the previous month if your birthday falls on the first). You can wait to sign up until the month of your birthday or during the three months after your birthday, but your coverage will be delayed.
What Does Medicare Cover?
Medicare Part A covers inpatient care in a hospital, skilled nursing facility, or nursing home, hospice care, and home health care. Medicare Part B covers preventive services and medically necessary treatment. Medicare Advantage has the coverage of Part A and Part B with additional packages for prescription drug coverage and often dental, hearing, and vision plans. Medicare Part D covers prescription drug costs, leaving you with low copayments. Medicare Supplements cover the out-of-pocket expenses from Part A and Part B.
What Doesn’t Medicare Cover?
Medicare does not cover long-term care, routine dental, hearing, or vision care, chiropractic care, acupuncture, routine foot care, or cosmetic surgery. You can easily check whether or not your test, item, or service will be covered through a search tool on Medicare’s website.
Do I Get Premium-Free Part A?
Most people pay no premiums for Medicare Part A. You may qualify for premium-free Part A if:
- You or your spouse worked for at least 40 calendar quarters while paying taxes to Medicare
- You already get retirement benefits from Social Security or the Railroad Retirement Board
- You are eligible for retirement benefits but haven’t filed for them yet
- You or your spouse had Medicare-covered government employment
What Does Medicare Cost?
For your Medicare benefits, you will need to pay premiums, deductibles, copayments, and coinsurance.
How Often Do I Need to Renew My Coverage?
If you sign up for a Medicare Advantage plan, you will need to renew your contract each year or switch to a different plan.
For all of your Medicare questions, contact Jersey Medicare Solutions.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
