Understanding Medicare & When Does It Begins
Medicare is a federal program that provides health insurance for individuals who are 65 years or older. For most people, Medicare starts when you turn age 65. Some individuals can start earlier if they are disabled under Social Security definitions and are receiving SSDI, or have ALS (amyotrophic lateral sclerosis) or ESRD (end-stage renal disease). Once you have begun to collect Social Security, you may be enrolled in Medicare automatically. The services you receive, as well as the amount you pay out-of-pocket, depends on the coverage option you choose - either Original Medicare
or Medicare Advantage.
This involves hospital coverage and is inclusive of inpatient hospital care, skilled nursing facility care (rehab only), hospice or nursing facility care, and home health care.
The deductible for Part A during 2023 is $1,600.00. There is no cost for Part A if you have paid Medicare taxes for at least 40 quarters while working.
This part is considered your outpatient medical coverage. Its benefits include physician visits, labs, surgeries, any durable medical equipment, and more.
It’s also considered as medical insurance that helps with medically necessary doctor services and outpatient care. Also covered here are preventive services to help you maintain your health and keep illnesses from getting worse.
Please note that the deductible for Part B for 2023 is $226.00. Medicare will pay 80% of medically necessary health care after you pay this deductible and you will be responsible for the other 20%.
If you don’t sign up for Part B when you are first eligible (i.e., Initial Enrollment Period), you may have to pay a late enrollment penalty.
The cost of Part B is based on your income. In 2023, the estimated monthly premium is $164.90 This amount may be higher based on your taxable income. The IRS makes that determination and is deducted from your Social Security benefit. If you are not receiving your benefit, you will be billed quarterly by the SSA.