The first of the 78 million baby boomers turned 65 on January 1, 2011, and about 10,000 boomers a day will be reaching that age between now and 2030.
Medicare consists of four major programs:
• Part A covers hospital stays.
• Part B covers doctors’ fees.
• Part C allows you to receive additional types of coverage such as
vision and dental insurance.
• Part D covers prescription drugs.
The time period for enrolling in Medicare without penalty begins three months before your 65th birthday, and continues for seven months. If you’re currently receiving Social Security benefits, you don’t need to do anything. If you’re not currently receiving Social Security benefits, you’ll need to sign up for Medicare by calling the Social Security Administration at 800-772-1213 (or visiting www.socialsecurity.gov/medicareonly). It is best to do so as early as possible, so your coverage begins as soon as you turn 65.
Part C is sometimes called “Medicare Advantage.” Medicare Advantage consists of private health plans that operate under the Medicare program. You must be enrolled in Parts A and B to join a Medicare Advantage plan. If you do, the plan will provide all of your Part A and Part B coverage, and it may offer extra coverage, such as vision, hearing, dental, and health and wellness programs. (Most such plans also include prescription drug coverage.)
Finally, Part D covers prescription drugs. If you don’t sign up for a Medicare Advantage plan with prescription drug coverage, then you’ll want to enroll in a prescription drug plan at the same time that you sign up for Parts A and B. For every month you delay enrollment past the initial enrollment period, your Medicare Part D premium will increase at least one percent. However, you’re exempt from this penalty if you didn’t enroll because you already had drug coverage from a private insurer that is at least as good as Medicare’s. (Your insurer should let you know if its coverage qualifies.) To find a drug plan in your area, visit the Medicare website at www.medicare.gov/find-a-plan/questions/home.aspx.
Ms. MacDonald’s practice is limited to estate planning, probate, conservatorships, elder law and trust administration. Ms. MacDonald maintains her practice in the Santa Clarita Valley at 25115 Avenue Stanford, Suite B-124 in Valencia, California. She can be reached at 661-294-6464.