If you decide you need additional Medicare insurance when you retire, you should read this brief rundown of these types of plans. If you have Medicare Part A or Part B, you may be able to purchase “Medicare Supplement” insurance to pay for medical services such as dental, vision and other medical expenses. The gap between what Medicare pays you and the amount you owe for your medical care is eventually called the Medicare coverage gap.
In most states, Medicare supplement insurance plans are standardized and labeled with a letter. They can help fund health costs that are not covered by Medicare Part A or B, such as dental, vision and other medical expenses.
You can choose to buy a Medicare supplemental plan from a private insurance company, or you must buy it on the open market if your PEBB program does not offer a Part D plan. Some Medicare supplement plans do not offer prescription drug coverage, but you have opted for one of the Medicare Part B or B-2 plans.
“Some are surprised that, after working for decades and paying Medicare taxes, they still have to shell out money,” said Elizabeth Gavino, founder of Lewin & Gavino in New York, according to CNBC.
If you want help paying for expenses that are not covered by original Medicare, you can take out a Medicare supplement insurance plan, also known as Medigap. Medigap insurance is designed to supplement your original Medicare coverage, but it is also available from private insurance companies. Once you have selected a plan and you receive your prescriptions and a prescription drug plan for your Medicare plans Part B or B-2, you can enroll in Medicare Part D.
If you would prefer to enroll in an insurance plan that includes Medicare Part B or B-2 or Part D prescription drug plans, you might want to get a Medicare Advantage plan. The premium amounts of Medicare Advantage plans vary depending on the plan and insurance company you choose, as well as the type of coverage available.
“With a supplement or [Advantage Plan], a beneficiary would know what their financial cap would be,” Gavino said.
Prescription drugs are optional, but you can get them if you are enrolled in a Medicare Part B or B-2 plan or Part D for prescription drugs. If you choose Medicare Part C to ensure Medicare coverage, you can familiarize yourself with the plan options available to you before choosing the health insurance that best suits your needs. When you join your Medicare Advantage plan, you continue to pay your monthly Medicare Part B premium.
Be aware that if you do not receive Medicare prescription drugs when you are first eligible, you will have to pay a penalty for late enrollment. Note: If you opt for PEBB pension coverage and later sign up for a Medicare Part D plan, you must sign up at the same time as your Medicare Advantage plan. If, after being eligible for Medicare prescription drugs under your Part B or B-2 plan, you decide to sign up for prescription drugs under Medicare Parts D and Part C, you can keep your PEBB coverage but pay the late admission fees.
The PEBB program does not offer Medicare Part D plans, but you do not have to sign up for it. Can’t refuse to sell you a Medicare supplement policy, regardless of your health, or charge you more for it than your Medicare Advantage plan.
If you enroll in Medicare Part B at age 65, the Medigap Open Enrollment begins the day it takes effect. If you continue to work after the age of 65, you may have to delay enrollment until the age of 65, or you may be able to register on the first day of the new year.
If you are 65 or older, you may need to delay enrollment in Medicare Part B to cover your working spouse. This means that not only do you wait two years after signing up for Medicaid, but you pay an additional 20% of your monthly premium until you have Medicare Part B. If you sign up for Medicare Part A and Part B at ages 65 and 65, you won’t be able to enroll until the first day of the new year.
With limited exceptions, you will have to pay a penalty for late enrollment if you have prescribed Medicare drugs. The difference between eligibility for Medicare Part D and non-enrollment is calculated by the number of months you reveal that you are enrolled in a Medicare prescription drug plan and the amount of your monthly premium.
If you are still working at 65 and have sufficient health insurance through your employer, you can defer Medicare Part B because it comes with a monthly premium. You can qualify for a special enrollment period that lasts eight months after you retire or after your employer’s coverage ends.
It is a good idea to compare Medicare supplement plans to ensure that you enroll in Medicare at the time you plan to retire, because you need to bear in mind that if you do not enroll in Medicare on time, you may incur a penalty for not having adequate health insurance coverage. To avoid the late enrollment penalty, you must enroll in Medicare at least six months before you retire.