Medicare, a federal health insurance program, is designed to help the elderly and disabled pay for medical expenses. President Johnson signed Medicare into law in 1965, and since then it has helped millions of retired citizens pay for expensive health care procedures, medications and doctors' visits. If you are nearing retirement age, the Social Security Administration will send you an information packet with application instructions for retirement benefits and Medicare.
Definition
Medicare is financed by both federal payroll taxes and premiums deducted from Social Security benefits. It is comprised of four parts. Part A helps pay for hospital care and some health care. Part A is also called "free Medicare," meaning you don't pay a premium. Anyone who qualifies for Part A also qualifies for the three other types, for which you do pay a premium: Part B, for doctors' visits and medical procedures; Part C, a combination of Parts A and B; and Part D, which helps pay for prescription drugs. You can apply for Medicare online at the link in "Resources," or call 800-MEDICARE for more information.
Requirements
To receive Medicare, you must be 65 or older and a citizen or permanent resident of the United States. You must also be eligible to receive Social Security benefits, or have a spouse -- living, deceased, or divorced -- who is eligible for benefits. Even if you are not eligible by these criteria, you can still obtain Medicare by paying a premium. The SSA recommends signing up for Medicare three months before your 65th birthday.
Exceptions
In some cases, people under age 65 may receive Medicare insurance. If you have a disability, permanent kidney failure or Lou Gehrig's disease, you may obtain Medicare at any age. You may have to pay a monthly premium depending on your individual case. In some states, there are programs to help offset the cost of Medicare premiums and prescription drugs, for which you must qualify as low-income.
Significance
The starting age for Medicare is 65, as this was once the standard retirement age for Social Security. Now, full retirement age varies depending on your birth year. If you were born in 1942 or earlier, your full retirement age is still 65. However, if you were born between 1943 and 1959, your retirement age is 66, and if you were born in 1960 or later, your retirement age is 67. Whether or not you decide to apply for retirement benefits at full retirement age, you are always eligible to apply for Medicare as early as age 65.
Considerations
Some people may not retire at their retirement age; instead, they may continue to work and obtain health insurance through their employer. While there is nothing wrong with this option, the Social Security Administration recommends applying for Medicare at age 65 regardless of your retirement age. If you wait until age 70 or later to apply for Medicare, you may have to pay higher premiums due to the larger number of risks associated with old age.
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