Medicare can be confusing for many people. There are different times when you can, when you should and when you must sign up for some or all parts of Medicare.
Even though you may not be retired and drawing Social Security, the Social Security Administration verifies your eligibility for Medicare and facilitates deductions and payments for your Medicare coverage.
You can apply for Medicare during your Initial Enrollment Period (IEP). IEP is a seven month window when you can enroll in Medicare, it starts three months before your Birth Month and ends three months after your Birth Month.
Medicare Part A
This starts on the first day of the month you turn 65. If you worked 40 quarters or more (10-years) you are eligible to receive this benefit free. If you worked less than 40 quarters, or 10 years, you may get Medicare Part A by paying a monthly premium.
[CLICK to see Medicare Part A costs]
Medicare Part B
This starts on the first day of the month you turn 65 unless you are covered by an employer’s medical plan. Premiums for Part B are income based. The standard Part B premium in 2024 is $174.70. Premiums can be deducted from your Social Security payment if you are receiving Social Security retirement benefits or can be paid for quarterly from your bank account. [CLICK to see cost for Part B]
Medicare Part D – Prescription Drug Plan
This starts on the first day of the month you turn 65 if you are not covered by an employer’s prescription plan. Premiums for Part D are set by the private insurance company that offers the plan. Part D premiums are income based. Premiums can be deducted from your Social Security payment if you are receiving Social Security income benefit or can be paid from your bank account. [CLICK to see cost for Part D]
Social Security Benefits
You can start your Social Security Retirement Income benefits anytime between the age of 62 and 70. Your Full Social Security Retirement Age varies depending on your Birth Year. If you take your Social Security Income when you reach your Full Retirement Age you will receive 100% of your benefit. If you begin to draw Social Security income benefits prior to your Full Retirement Age your monthly benefit will be reduced by approximately 25% to 30% of the Full Retirement Income amount. If you wait until after your Full Retirement Age, your delayed Social Security Retirement Income benefits will increase by 8% each year to a maximum of 132% of the amount they would be at your Social Security Full Retirement Age. Because Social Security income benefits do not increase after you reach age 70, there is no advantage gained by delaying your Social Security Retirement Income benefits after age 70.
[CLICK to see Social Security Retirement Age]
Example of Maximum Social Security Retirement Benefits: In 2023 the Social Security Full Retirement Age is 66-years and 6-months. In 2024 the maximum amount that Social Security will pay an individual at Full Retirement Age is $3,822. Social Security retirement income benefits are based on earnings, the estimated average monthly Social Security retirement benefit in January 2024 was $1,907.
Is it mandatory to sign up for Medicare at age 65?
No, but if you do not have other creditable health coverage, you may face penalties for delaying your Medicare enrollment. When you enroll for Social Security Retirement Income benefits, you will be automatically enrolled into Medicare Part A.
You can also qualify for Medicare under these circumstances if you are under age 65 and:
- you are permanently disabled, and have been receiving Social Security Disability Income benefits for 24 months
- you have end-stage renal disease, (ESRD) or you are waiting for a kidney transplant
- you have Amyotrophic Lateral Sclerosis (ALS), aka Lou Gehrig’s disease
All information contained in this article was obtained from the Social Security Administration (SSA) and the Centers for Medicare and Medicaid Services (CMS) websites and publications.