Medicare
Medicare is a U.S. Government entitlement program that you are qualified for it you pay over 40 credits into the program. You can begin Medicare at age 65. Generally, if you qualify for Social Security, you qualify for Medicare.
Medicare is often referenced based off of the 4 parts: Part A, Part B, Part C, & Part D
Part A
Medicare Part A is of no cost to the individual and provides for health insurance costs related to hospital visits. There are many items that Medicare Part A does not cover.
Part B
Medicare Part B has a monthly, per individual, cost and provides for health insurance costs related to doctor visits. There are many items that Medicare Part B does not cover.
Part C (Medicare AdvantagePlan) / Medigap (Medicare Supplement)
This important area of Medical coverage can be through a Medigap plan (Medicare Supplemental) or Part C (Medicare Advantage Plan). This coverage also has a monthly, per individual, cost. The goal of Part C is often to cover the gaps in coverage that exist with only Medicare Part A & Part B.
Part D
Medicare Part D has a monthly, per individual, cost and provides for Prescription Drug coverage.
Medicare does not currently cover Hearing Aides, Eye Care, nor Long Term Care.
IRMAA, Income Related Monthly Adjustment Amount
Medicare has a 2 year look-back on your Income Taxes to determine if you are subject to IRMAA. If your earnings exceed a threshold for a given year, you may be responsible for paying a surcharge on your Medicare premium. This surcharge is added on per month, per person, for the duration of the tax year.
Qualifying “Life-Changing Events”, such as: work stoppage or reduction, change in marital status, and certain changes in income may allow you to request a waiver of the 2-year look-back rule.
Penalties
The sign-up process with Medicare can be fraught with potential penalties that linger with you for your lifetime. Understanding your individual situation, regarding if and when you need to sign up for Medicare, is important.