Thursday, January 13, 2011

Medicare Application Faq

Medicare is a health insurance program administered by the federal government. Medicare helps senior citizens to receive needed medical treatment that they would not be able to pay for otherwise. It is divided into four parts, and each part has a specific range of coverage. Only Part A is free. Part B, Part C and Part D are not free, but monthly premiums depend upon the coverage being offered.


Do I Need to Apply for Part A Coverage?


Part A is also known as "Hospital Coverage," and it helps to pay for costs of hospitals and clinics. Since Part A is funded by Medicare taxes that every employee in the United States must pay, its coverage is free, and enrollment is automatic when you turn 65. However, for those citizens who have not paid Medicare tax while working, such as self-employed individuals, they are not eligible for premium-free Part A, but they can apply and pay for it under certain circumstances. To get Part A coverage, you must be older than 65, enroll in Part B and meet citizenship requirements. People under 65 may gain access to it as well if they are disabled.


How Can I Apply for the Other Medicare Parts?


For Part B, also known as "Medical Insurance," you are automatically enrolled when you turn 65, and application is not necessary. Since you need to pay monthly premiums for Part B, if you do not want it, you can opt to dismiss it. Part C is known as "Medicare Advantage," and enrollment is free. To apply for Part C, you must contact the plans you are interested in and apply directly with the company through its website or phone. To apply for Part D, you must also choose a plan that interests you and complete a paper application or call the plan provider.


When Can I Apply for Medicare?


You are automatically enrolled on Part A and Part B when you turn 65. To apply for Part C, you can do it when you turn 65 or anytime after you are 65 years of age. However, you must only apply once a year, since Part C plans have coverage that lasts for a year. To apply for Part D, you must do it by the enrollment period. The enrollment period starts three months before you turn 65 and lasts for the three months after you turn 65.


If I Do Not Apply in Time, Do I Need to Pay Late Fees?


If you opt to drop Part B when you turn 65 and you decide to apply later on, you can do it in the general application period, but you will need to pay higher premiums as a penalty for your late enrollment. However, if you have coverage through an employer or union health plan, you can apply during the special enrollment period without paying late penalties. Part D also has late penalties for not applying during the enrollment period. If you decide to apply for Part D later on, you need to pay a penalty of 1 percent of each monthly premium you pay.

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