As a practitioner, we strive to add value to the advisor-client relationship. This often requires a broad knowledge on a wide array of subjects. In this post, we will discuss Medicare. We will explore the various parts of the program, the costs, the eligibility rules, and the consequence of missing the enrollment deadline. I have included several inks for more information.
Medicare was enacted in July 1965 under Title XVIII of the Social Security Act. Fifty-three years later, Medicare has four parts as follows:
- Part A: Hospital
- Part B: Outpatient Services
- Part C: Medicare Replacement
- Part D: Prescription Drugs
Rules of Eligibility
Generally, if you are 65 and you or your spouse have paid Medicare taxes for at least 10 years, you may enroll. Persons under 65 may enroll if they are disabled or have End Stage Renal Disease. To see if, or when you will be eligible for Medicare, click here.
Cost of Medicare
Part A: This is free for most people. If you did not pay Medicare taxes, you may be able to enroll in the program and pay for Part A. If you are under age 65 and did not pay into Medicare, you may be eligible if you have been entitled to Social Security or Railroad Retirement Board disability benefits for 24 months or you are a kidney dialysis or kidney transplant patient.
Part B: Everyone must pay a premium for Medicare Part B, which is deducted from your Social Security retirement payment. If you are eligible but have not yet started to receive a Social Security retirement benefit, Medicare will send you a bill. To calculate your cost for Medicare Part B, click here.