The other day I met with a new client who is turning 65 in November, just over two months from now. One of the first questions I asked him was, “Do you have your Medicare card?”.  His answer was, “no”.  With this bit of information I knew that he is not yet collecting Social Security – and this means he has to take some action to get enrolled in Medicare.

Most people I meet, who are turning 65, are already collecting Social Security, although the full age for collecting is 66. About 75% of people decide to start collecting as early as they can, which is when they turn 62. They get a smaller check if they decide to start receiving Social Security payments at 62 rather than 66, but lots of people have “retired” early, or lost their job, and they need the money sooner rather than later.

How you enroll in Medicare Part B depends on your current situation related to Social Security.

1) If you are receiving Social Security payments, you will automatically be enrolled in Medicare A and B. Part B has a monthly premium, which will be deducted from your Social Security check at the start of the month in which you turn 65.  Your Medicare card will be sent to you three months before your birthday month.

2) If you are not drawing Social Security payments, you will need to contact Social Security to tell them you want Part B. Part A has no premium, so you get this automatically.

You can enroll in Medicare on-line by going to SSA.gov. Or, you can call Social Security at 800-772-1213.  You will also need to make arrangements to pay your Part B premium, which is $99.90 per month. You have to pay 3 months at a time when you first start your Medicare coverage, but you can set up automatic bank withdrawals to pay the premium each month.

You can sign up for Medicare Part B three months before you turn 65.  If you wait to enroll in Part B until the month you turn 65, you will have to wait one month or more to get Part B.

If you are still working and have employer health insurance, you might not need to enroll in Medicare. If your employer has fewer than 20 employees, you must enroll in Medicare A and B (and pay the Part B premium).

Once you’ve enrolled in Part B, you will get your Medicare card.  Your Medicare card has important information that is required when you go to sign up for a Medicare supplement, Part D plan, or a Medicare Advantage plan (with Part D included). Your Medicare claim number is usually your Social Security number with a letter after it.  People who don’t use Medicare when they turn 65 will have different start dates for Part A and Part B.

Once you’ve got your Medicare card you need to choose your Medicare coverage.  Will you have only Medicare? (A financially risky choice)  Will you get a Medicare supplement and a stand-alone Part D plan?  Will you enroll in a Medicare Advantage plan that includes Part D drug coverage?  To get a brief overview of your Medicare choices, check out this video: Intro to Your Medicare Choices.

In 2011, 2.8 million baby boomers will turn 65 and become eligible for Medicare.

Not all of these baby boomers will need to enroll in Medicare because many will continue working and will be covered by their employer’s health insurance.  A person who works for a large employer with good health insurance (that probably includes coverage for a younger spouse, and even dental and vision insurance) should keep that coverage and does not need to enroll in Medicare.  When that person retires, he/she will face no penalty for late-enrollment in Part B of Medicare.

But people who are self-employed, or work for a small company with lousy health insurance (with high deductibles, co-pays, and ridiculous premiums) will be thrilled to get into the Medicare system.  I have said to many people in this category, “You may be getting older, but you’ll finally get good health insurance!”

How you enroll in Medicare depends on your current situation related to Social Security.

1) If you are receiving Social Security payments you will automatically be enrolled in Medicare A and B. Part B has a monthly premium which will be deducted from your Social Security check at the start of the month in which you turn 65.  Your Medicare card will be sent to you three months before your birthday month.

2) If you are not drawing Social Security payments you will need to contact Social Security to tell them you want Part B. Part A has no premium, so you get this automatically.

The Social Security phone number is 800-772-1213.  You will also make arrangements to pay your Part B premium, which for 2011 is $115.40 per month for those who are new to Medicare (but much higher if your income is above $85,000/yr).  You have to pay 3 months at a time, but you can set up automatic bank withdrawals to pay the premium each month.

You should make sure you are signed up for Medicare three months before you will turn 65.  So if your birthday is in April, now is the time to get started on your Medicare Part B enrollment. If your birthday is in March, you really need to get on the ball.

Once you’ve enrolled in Part B you will get your Medicare card.  Your Medicare card has important information that is required when you go to sign up for a Medicare supplement, Part D plan, or a Medicare Advantage plan (with Part D included). Your Medicare claim number is usually your Social Security number with a letter after it.  People who don’t use Medicare when they turn 65 will have different start dates for Part A and Part B.

Once you’ve got your Medicare card you need to choose your Medicare coverage.  Will you have only Medicare? (A financially risky choice.)  Will you get a Medicare supplement and a stand-alone Part D plan?  Will you enroll in a Medicare Advantage plan that includes Part D drug coverage?  On my website I provide a short video presentation, Intro to Your Medicare Choices.  Click here to to go that page.

You don’t automatically get your Medicare coverage unless you are receiving Social Security or Railroad Retirement payments.  I’ve recently talked to four people who did not know they had to sign up for Part B before their 65th birthday.  They swear they never received any notification from Medicare or Social Security informing them they needed to apply for Part B.  Or perhaps the notice got lost in all the junk mail that looks official but isn’t.

People who started receiving Social Security or Railroad Retirement benefits at 62 will receive their Medicare card about three months before their 65th birthday.  And the Part B monthly premium ($110.50) will be taken out of their Social Security payment (or Railroad Retirement payment) starting in the month they turn 65.

Everybody else must apply for Part B because Medicare doesn’t assume you want or need Part B.

If you are working and have good health insurance through your employer, you don’t need Part B (and you face no penalty when you enroll later). If you work for a small company with lousy health insurance and a high deductible, it might be worthwhile to compare your Medicare options with your employer’s coverage.

If you want Part B you will need to call Social Security at 1-800-772-1213.  You may be able to apply for Part B over the phone – or you may be told you must go into the local Social Security office to fill out paperwork and show them an original birth certificate.

Medicare Part A covers hospital charges, home health care, hospice, and skilled nursing facility charges.
Part B covers everything else incuding:  doctor bills, ambulance, emergency room charges, lab tests.
Part D is drug coverage and is purchased through an insurance company.

If you don’t sign up for Part B before your 65th birthday, you will have a delay in getting your Medicare coverage.  If you go three months past your 65th birthday without signing up for Part B, you will pay a late-enrollment penalty and you may have to wait 6 months to a year to get coverage.  So mark your calendar to enroll in Part B before the month in which you turn 65!

Once you have your Medicare Part A and B you need to make decisions about your Medicare coverage and your Part D drug coverage.  For more information on this, I’ve prepared a video at  http://medicarechoicesofarizona.com