|  | Healthcare Industry | Health Insurance

Medicare for Retirees

The federal government provides health insurance to American citizens to help them access necessary medical treatments that usually come at high cost. People who do not have health insurance or who cannot pay for it must pay high prices for almost any medical need they may have. For this reason, in addition to provide retirement benefits for senior citizens, the Social Security Administration also provides health insurance coverage through the Medicare program.

  1. Medicare

    • Medicare is a public health insurance program run by the Social Security Administration. Medicare coverage starts at age 65, and you can enroll in it even if you are not yet retired. Medicare coverage is also available to disabled people younger than age 65 who receive Social Security Disability benefits. Medicare includes four different types of coverage: Part A, Part B, Part C and Part D. If you pay Medicare tax, you can use Medicare Part A benefits for free. If you want to enroll in Part B, Part C or Part D, you must pay monthly premiums.

    Retirees

    • Full retirement age for Social Security benefits is 66 if you were born before 1960 or 67 if you were born after 1960, but you can retire at 62 years of age with reduced benefits. If you have paid Social Security tax, you are eligible to receive retirement benefits once you decide to retire. At age 65, you become eligible to enroll in Medicare. If you already are a retiree when you turn 65 years of age, you are automatically enrolled in Medicare Part A and Part B. You do not need to worry about enrolling or signing up for benefits; your benefits automatically start on the first day of the month in which you turn 65 years of age.

    Automatic Enrollment

    • Individuals who are not yet retirees when they reach age 65 must contact the Social Security Administration to enroll in Medicare. However, if you are a retiree, your coverage starts without you needing to do anything about it, but you are only automatically enrolled in Medicare Part A and Part B. You still need to sign up for Part C and Part D if you desire to receive this coverage. Medicare Part A is hospital insurance, and Medicare Part B is medical insurance. Although Part A is free, you must pay monthly premiums for Part B. For this reason, you are allowed to drop your Part B coverage when you receive your card in the mail -- which happens three months before you turn 65.

    Signing Up

    • If you are not a retiree when you become eligible to receive Medicare coverage, you must contact the Social Security Administration to sign up for Medicare. If you have paid Medicare tax, you are entitled to enroll in Part A, and you can choose to add other types of coverage. If you have not paid this tax, you may purchase Part A if you are also purchasing Part B. If you are a retiree, you only need to enroll in Part C and Part D. Part C is private insurance that includes Part A and Part B coverage plus other types of coverage not included in Parts A or B. Part D is prescription drug coverage. To enroll, you can contact the Social Security office or call the company that offers the plan you choose.

Health Insurance - Related Articles