One of the most common questions I get is, “will I be automatically enrolled in Medicare?”
There is a lot of conflicting information out there regarding this issue, so I want to use this blog post to help clear up any confusion.
There are two categories I see most people fall into:
First, some people think they are going to be automatically enrolled in Medicare when they are not. Therefore, they face Medicare penalties.
Second, people aren’t sure if they are automatically enrolled or not, so they waste hours trying to figure out the rules and whether or not Medicare will be done automatically for them.
Whether you fall into those two categories or not, I want to get clear as to who is automatically enrolled in Medicare and who is not. This will save you time and help you avoid penalties.
Now, Medicare says that if you’re drawing Social Security FOUR MONTHS BEFORE your 65th birthday, you will be automatically enrolled in Medicare Part A and B.
As a reminder, Medicare Part A is your hospital insurance, and Medicare Part B is your doctor’s insurance.
If you fall into this scenario, about two months before your 65th birthday, you will get your Medicare card in the mail. This will be your Medicare Part A and B card, along with a form.
A couple more things you need to know if you’re drawing Social Security four months before your 65th birthday:
1. If you plan to stay on an employer plan (your employer plan, your spouses, or a retiree plan) you need to take action so you aren’t unnecessarily doubling paying for health insurance.
2. Additionally, it’s essential to know that just because Medicare is automatically enrolling you in Part A and B, that does not mean you are done with your Medicare decision. If you only enroll in Part A and B, Medicare only covers 80 percent of the cost, and you will be responsible for the remaining 20 percent. You still need to decide if you want to be in Original Medicare or Medicare Advantage. After you choose this, that will determine additional steps.
Now, if YOU ARE NOT drawing Social Security four months before your 65th birthday, you WILL NOT be automatically enrolled in Medicare.
That means, if you want your Medicare to start on your 65th birthday, you will need to apply specifically for Medicare Part A and B. It will not be done for you.
Whether or not you are automatically enrolled, you also have to get a Medicare Part D plan to avoid additional penalties.
The key takeaway is that everyone, regardless of auto-enrollment, must take additional steps to make sure that they’re meeting Medicare rules to protect your savings and healthcare.
To easily make the right Medicare decision you can CLICK HERE to sign up for our Medicare Enrollment Concierge.
