Medical expenses can add up later in life. For this reason, the government created Medicare.
Medicare is a comprehensive health insurance plan for the elderly that is partially funded by deductions from the worker's paycheck, and partly through premiums deducted from their Social Security check. The eligibility requirements are dependent on age, health status or as a result of taking Social Security. There are four parts: Hospital Insurance (Part A), Medical Insurance (Part B), Medicare Advantage (Part C), and Prescription Drug Coverage (Part D). A person will qualify for all four simultaneously, but does not have to elect to take the full coverage, as it will cause premiums to rise.
General Eligibility
Generally, anyone who worked and is over the age of 65, or who has been receiving Social Security benefits for more than two years, will automatically qualify for Medicare coverage. Anyone born after 1929 will need 40 work credits in order to be eligible for Medicare. Also, those who are deemed to be disabled, or those with permanent kidney failure or Lou Gherig's disease, will usually qualify for the insurance at any age.
Work Credits
A person is limited to earning four work credits per year, no matter their income. In 2010, a work credit was received for every $1,120 in earnings. This amount increases annually in line with the cost of living and inflation. Therefore, in order to be eligible for Medicare a person must work for 10 years, receiving more than the minimum amount in earnings for each of those years.
Others Who May Be Eligible
A person that is not over the age of 65 or receiving Social Security benefits must apply to the Social Security Administration to receive the health insurance coverage. If a person's spouse is receiving Social Security or is on disability, and that person is not receiving Medicare, he can apply for benefits three months prior to turning 65.
Delaying the Use and Payment For Medicare
After the age of 65, a person may elect not to enroll in Medicare. This could be because she is still working and has a group plan available. She must submit a form for her delay request to the department of Social Security. However, for every 12 months that a person does not take at least Medicare Part B, her premiums will increase by 10 percent. In some cases this can be avoided as long as she applies within eight months of ending her employment.
Tags: Social Security, receiving Social, receiving Social Security, eligible Medicare, health insurance, Insurance Part
