A University of Alabama Law School Clinical Program funded in part by West Alabama Regional Commission

3. A word about Medicare

There is an article about Medicare on this web site; here are some important points:

Regardless of when you start collecting SS benefits you should register for Medicare “Part A” when you reach 66 (or Full Retirement Age if not 66), even if you are still working and are covered under an employer’s policy. Part A entitlement is automatic when you sign up for Social Security benefits. There is no premium for most workers. Part A helps with hospital bills. Most employer health plans require that eligible employees enroll in Part A. You may want to delay enrolling in Part B in order to avoid the premiums. Be sure your employer's coverage meets Medicare standards.

Medicare Part B helps with medical and other non-hospital bills. You must elect whether or not to take Part B. Most people do and it is hard to think of a reason not to. There is a monthly premium ($96.40 per month in 2009) deducted from the Social Security check. There are programs to help low income recipients with the premiums. The Part B premium is not expected to increase for most beneficiaries in 2010, but about 25% of beneficiaries - those who become eligible in 2010 and those with high incomes -can expect to pay more.

If you do not elect Part B within the three months before your birthday month, during that month, or the three months after it, your monthly premium will be increased when you do make the election under this part, unless you fall within one of the exceptions. In addition, you are not eligible for Part D (prescription drug coverage) unless you are enrolled in Part B.

If you continue working after age 65 and you are covered under an employer’s policy and your employer has more than 20 workers, you may delay electing Part B until seven months after you retire, without having your premium raised. CHECK WITH SOCIAL SECURITY TO BE SURE YOUR SITUATION FITS WITHIN AN EXCEPTION and do not let the time for election slip by when you do retire. If you do so, you may have to wait until the next Open Enrollment Date. Not only will this delay the effective date of your Part B coverage, but you cannot apply for a Prescription Drug Plan unless you are enrolled in Part B.

In most cases disabled workers do not qualify for Medicare coverage until two years from the “date of disability” stated in their benefit approval documents. There are exceptions for those with End Stage Renal Disease (ESRD) and Amyotrophic Lateral Sclerosis (ALS or Lou Gehrig's Disease"). They can collect immediately upon establishing these illnesses.

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