Medicare and Social Security are connected, but not conjoined.
One of the first questions we’re asked by those nearing Medicare age is: “What about my Social Security?” A common misconception is that one must sign up for Medicare in order to receive Social Security, or vice versa.
Social Security and Medicare are connected in many ways, and are independent in just as many ways. Medicare, which is regulated by the Centers for Medicare and Medicaid Services (CMS), is the nation’s healthcare program designed for those aged 65 and older, and for disabled individuals. The Social Security Administration controls the monthly benefits of entitled retirees, people with disabilities, and those who collecting survivorship benefits after losing a spouse.
The Social Security Administration also monitors and tracks your work history, including contributions made to FICA and Medicare Taxes. To be eligible for Medicare Part A, without paying a monthly premium, one has to have worked at least 40 quarters (or ten years); or they must be eligible to draw on the work record of a qualifying spouse.
Most individuals are eligible to draw on their Social Security Retirement Benefit as early as age 62, although there is a reduction in benefits, but must draw their benefits at age 70. Those who choose to draw before age 65 will automatically be enrolled in Medicare Parts A and B, and their Medicare Part B premium will be automatically deducted from their Social Security Retirement Benefit.
This is important to know for those who do not want to want to enroll in Medicare at age 65. There are various reasons to delay Medicare enrollment such as contributing to an HAS account or remaining on creditable group coverage to insure a younger spouse, to name a few.
Diserollment from Medicare A and B is possible using the appropriate form from Social Security, contacting Medicare directly, or by making an appointment with your local Social Security office. To avoid any late enrollment penalties; it is imperative that you are certain the coverage you remain on will be deemed “creditable” by Medicare’s standards, your Human Resources department is able to verify this information for you.
For those who have chosen to delay their Social Security Retirement Benefits, it is their responsibility to enroll in Medicare at the appropriate time. There is a 7-month window that begins 3 months before the month you turn 65, includes the birth month, and ends 3 months after the month your turn 65; this is known as the Initial Enrollment Period (IEP).
Disabled persons will have a different set of circumstances. Once awarded Social Security Disability, one must wait 24 months to be eligible for Medicare Parts A and B. And these benefits transition once these beneficiaries reach age 65.
It is usually 6 months before a beneficiary turns 65 that they become inundated with mailings, phone calls, and door-to-door salespeople offering “the best Medicare coverage.” This can be overwhelming and intimidating, which can lead to hesitation or procrastination.
Enrolling during your IEP affords little margin for error. Some people who would be considered ‘uninsurable’ only have one chance to choose the appropriate Medicare Supplement Insurance. Prescription Part D and Medicare Advantage plans can only be changed once a year during the Annual Election Period (October to December).
Careful thought and consideration should be given when making any decision related to Medicare enrollment and drawing Social Security Benefits.
Please email me if you want to know more about making the best Social Security decision, how you can maximize your retirement benefit, and if you would like to know how this will affect your Medicare planning,
