Medicare is the health insurance coverage for retired Americans and is divided into two parts, A and B. Part A covers medical expenses incurred in hospitals and Part B provides the payments to doctors and outpatient services. Medicare coverage starts at age 65, and most retirees enroll within a few months of their 65th birthday.
Initial Part B Enrollment
The initial enrollment period for Part B of Medicare is during the 7-month period around your 65th birthday -- three months before your birth month, your birth month and the three following months. If you enroll during the first three months of the period, Part B coverage will be in effect on the first day of your birth month. Enrollment during the other four months will result in a delayed effective date.
Group Health Insurance
If you covered by a employer or union group health insurance plan past age 65 due to the fact that you or your spouse continue to work, Medicare offers what is called a Special Enrollment Period. The Special Enrollment Period runs from the end of the regular enrollment period until eight months after your stop working or the group health plan coverage ends. This means you can enroll in Part B while you are still working, and if your or your spouse -- whoever is providing the coverage -- stops working, you have the following eight months to enroll in Medicare Part B.
Annual Enrollment Period
If you do not enroll in Medicare Part B during the initial or special enrollment periods, you can sign up for the coverage during the annual General Enrollment Period. General enrollment is open from January 1 until March 31 each year. Retirees who sign up for Part B during the General Enrollment Period will have the coverage start on July 1 of that year.
Medicare Part B Premiums
Medicare participants pay a monthly premium for Part B coverage. In 2011, the rate for most new Part B enrollees was $115.40. If you enroll during the initial enrollment period or Special Enrollment Period, you will pay the current rate for the year of enrollment. If you use the General Enrollment Period to join Medicare Part B after your normal enrollment time, you will have a 10-percent penalty added to your monthly premium.
Tags: Medicare Part, birth month, Enrollment Period, General Enrollment Period, Special Enrollment