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 65, 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.

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 ($66.60 per month in 2004; $78.10 in 2005) deducted from the Social Security check. There are programs to help low income recipients with the premiums.

If you do not elect Part B within six months after you are eligible, the monthly premium will be increased when you do make the election under this part, unless you fall within one of the exceptions.

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. The time limits and penalties associated with the complicated new "prescription drug benefit" are not yet clear. (See article on Medicare, this web site.)

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.

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