In this post, we discuss the basics of Medicare enrollment for those approaching 65 and for agents getting started in Medicare sales. Trying to navigate all the ins and outs of Medicare may be a bit confusing, but it does not have to be. Understanding when and how to enroll in Medicare is key to ensuring beneficiaries receive the best coverage for their needs.
Original Medicare
Original Medicare consists of Part A & Part B. It is a federal health insurance program put in place for individuals aged 65 and older or younger individuals with a qualifying disability or those with End-Stage Renal Disease (ESRD). Medicare provides coverage for many healthcare services, including hospital stays (Part A), and doctor visits (Part B).
It is important to note; Medicare covers approved expenses at about 80% after beneficiaries meet the Part B deductible.
The Parts of Medicare
Before diving into enrollment, it’s helpful to understand the different parts of Medicare:
- Part A (Hospital Insurance): Covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care.
- Part B (Medical Insurance): Covers outpatient care, doctor visits, preventive services, and some home health care services.
- Part C (Medicare Advantage): An alternative to Original Medicare (Parts A and B) offered by private insurers. Often includes additional benefits like vision, dental, and prescription drug coverage.
- Part D (Prescription Drug Coverage): Helps cover the cost of prescription medications. Beneficiaries may receive coverage through a Medicare Advantage plan or a stand-alone PDP plan.
Medicare Enrollment Periods
There are several enrollment periods to be aware of:
Initial Enrollment Period (IEP)
This is the first opportunity to sign up for Medicare. It lasts seven months:
- Begins three months before the month individuals turn 65
- Includes their birth month
- Ends three months after the month they turn 65
In most cases, those already receiving Social Security benefits are auto-enrolled in Original Medicare (Parts A and B). If they are not, they must enroll via the Social Security Administration.
General Enrollment Period (GEP)
Individuals who miss their Initial Enrollment Period can use the GEP to enroll between January 1 and March 31 each year. Coverage starts the first day of the month following enrollment. Please note; those who miss their initial enrollment period and don’t have other creditable coverage (usually through an employer) may face late enrollment pentalties.
Special Enrollment Period (SEP)
In some cases, individuals qualify for a Special Enrollment Period if they delayed Medicare because they had coverage through an employer or union. This SEP allows them to enroll without penalty when their other coverage ends.
Annual Enrollment Period (AEP)
AEP Each year from October 15 to December 7, beneficiaries can:
- Switch between Original Medicare and Medicare Advantage
- Switch from a Medicare Advantage plan back to Origianl Medicar
- Change from one Medicare Advnatage plan to another
- Join, switch, or drop a Part D plan
Medicare agents watch a YouTube video on marketing rules for AEP
How to Enroll in Medicare
There are a few ways to enroll in Medicare:
- Online at ssa.gov/medicare
- By phone by calling Social Security at 1-800-772-1213
- In person at your local Social Security office (call ahead for an appointment)
A Few Tips
- Beneficiaries should mark their calendar so they do not miss their enrollment window. Delaying enrollment can lead to gaps in coverage and penalties.
- Ask questions! Medicare can be complex, and there are plenty of free resources available to help. This is where it is important to have a reputable , licensed Medicare agent to provide guidance.
- Because Medicare does ot cover 100% of medical expenses, beneficiaries need to consider additional coverage options; Medicare Advantage or Medicare Supplement and Prescrption Drug plans.
Learn how to appeal a Medicare LEP
Understanding the basics of Medicare enrollment is a vital first step in managing healthcare needs. With a little preparation and the right information, beneficiaries can make good decisions that provide peace of mind and the coverage that best suits their needs.
Agents: