If you're under 65 and collecting Social Security Disability Income (SSDI), this video is for you.
To be eligible for Medicare, you must be 65 OR collect SSDI benefits for 24 months. Once you collect for 24 months, you'll receive a Medicare card in the mail. This includes coverage for Part A and Part B.
Part A is premium-free for those who have worked at least ten years and have paid into Medicare for 40 quarters. Yet, Part B comes with a monthly premium. This premium will be automatically deducted from your Social Security check each month.
If you're still working, you may have the option to delay enrolling in Part B to avoid paying the premium. As long as Medicare considers your employer coverage creditable, you can delay Part B without incurring any penalties. As long as your employer has 20 or more employees, your coverage will be creditable.
Without creditable coverage, you'll be responsible for a penalty if you delay Part B. The good news is that when you age into Medicare at age 65, the penalty will reset.
Because Original Medicare comes with out-of-pocket costs, you'll want to enroll in a supplemental coverage option as well. Once your Part B is effective, your Medigap Open Enrollment Period begins. It lasts for six months and allows you to enroll in a plan without answering health questions and going through medical underwriting. That means a carrier can't deny you coverage due to your disability.
However, there are some downsides to enrolling in a Medigap plan when you're under 65. First, some states don't require carriers to offer Medigap to individuals under 65.
Still, carriers usually only provide one option to those younger than 65 in the states that require at least one Medigap plan offering to those who qualify due to disability. This option is Plan A, which only includes core policy benefits.
With Part A, you don't have coverage for many things that other policies include, like the Part A deductible or extended skilled nursing facility care.
Another downside of Medigap for those under 65 is that the premiums can be significantly higher than for those 65 or over. In fact, you could pay four times more for a Medigap plan than you would if you were 65.
This is because carriers know you have a disability, so they consider you high-risk financially. Meaning, they know they may pay more for your health care costs than they would for someone over 65.
Finally, even if you find a premium that fits into your monthly budget, it's common to see high rate increases through the years when you enroll in Medigap before 65.
An alternative form of supplemental insurance for those under 65 is a Medicare Advantage plan. For Advantage plans, everyone pays the same rates – regardless of age. Premiums for Advantage plans are low – sometimes even $0. Additionally, rate increases are low, including for individuals under 65.
No health questions are involved in the enrollment process for Advantage plans. These plans come with maximum out-of-pocket limits and extra benefits such as dental, vision, hearing, and transportation. Some even come with an over-the-counter pharmacy card that you can use to purchase items at your local pharmacy.
However, there are a few things to know before you enroll in a Medicare Advantage plan.
When you have one of these plans, you can expect to pay out-of-pocket costs as you use the benefits. These include copays and coinsurance when visiting the doctor's office. Before enrolling, you'll want to ensure that all of your doctors are in the plan's network.
As most Advantage plans come with prescription drug coverage, you should check ahead of time that the drug plan's formulary includes all of your prescriptions.
Having a Medicare Advantage plan is good in that the maximum out-of-pocket amount protects you from spending too much. Although an Advantage plan
If you're under 65 and collecting Social Security Disability, don't go anywhere. In today's video we're going to go over everything you need to know about your Medicare options. Hi, Medicare Community. My name is Lindsey Malzone. I'm the Medicare expert for Elite Insurance Partners and MedicareFAQ.com. You're eligible for Medicare. Once you age in at 65 or once you've been collecting Social Security disability benefits for 24 months. After 24 months, you'll receive a Medicare card in the mail. This will include coverage for Part A and Part B. Part A is usually premium free as long as you worked at least 10 years and paid into Medicare for 40 quarters. Part B comes with a monthly premium. The premium will automatically be deducted from your Social Security disability check each month. Now, if you're still working, you may have the option to delay enrolling into Part B to avoid paying the monthly premium. As long as your employer coverage is considered creditable under Medicare, then you can delay Part B without incurring any penalties. As long as your employer has over 20 employees. Then the coverage for group insurance is considered creditable. If you don't have another form of creditable coverage and don't want I pay the Part B premium and choose to delay, then you may start to incur late enrollment penalties. The good news is that when you age into Medicare at 65 later down the road, those penalties will reset. Since Original Medicare comes with out-of-pocket cost. You'll want to enroll in some form a supplemental coverage. Once your Part B is an effect, your Medigap Open Enrollment period will begin. This enrollment period will last 6 months and give you the opportunity to enroll in a plan without having to go through medical underwriting. That means a carrier cannot delay you coverage due to your disability. However, there are some downsides to Medigap plans when you're under 65. In some states, carriers are not required to offer Medigap plans to those who are under 65. Some states do require carriers to offer at least one plan to those under 65. This is usually Medigap Plan A. Medigap Plan A only includes core policy benefits. You don't have coverage for many things like Part A deductible or extended skilled nursing facility care. Another downside of Medigap for those under 65 is that the premiums can be significantly more than those who are over 65. You could end up paying up to four times the amount in a monthly premium for your Medigap plan than you would if you were 65. This is because carriers know that you have a disability and consider you high risk financially. They know they may end up paying more out-of-pocket for your health care cost than they would for someone over 65. Another issue is even if you find a premium that does fit into your monthly budget. It's common to see very high rate increases year-over-year for these plans when you're under 65. The alternative option to a Medigap plan for those under 65 is a Medicare Advantage Plan. With Medicare Advantage, everyone pays the same rates regardless of age. Medicare Advantage premiums are also much lower and can sometimes be even $0. In addition, Medicare Advantage Plans usually come with lower rate increases yer-over-year, even if you're under 65. There's also no health questions to enroll. Unlike original Medicare, Medicare Advantage does come with a maximum out-of-pocket limit. They also come with extra benefits, such as dental, vision, hearing, and even transportation. Some even come with an over-the-counter Pharmacy card that you can use for items you can purchase at your local pharmacy. There's just a few important things to know if you choose to enroll in a Medicare Advantage Plan. With Medicare Advantage plans, you can expect to pay some out-of-pocket cost as you use the benefits. This can include a copay and coinsurance, when you visit the doctor's office. You'll also want to make sure that all your doctors are included in the plans Network. Some of them do come with prescription drug coverage. Just make sure your prescriptions are covered under the plan. Since original Medicare doesn't come with a Maximum Out-of-pocket limit, having some form of supplemental coverage is better than none. So having a Medicare Advantage plan is good, but it's not great. If you're on disability and the premiums for a Medigap plan are just too high, the good news is you'll get a second Open Enrollment period to enroll in a Medigap plan when you do turn 65 years old. So if you choose to stay on a Medicare Advantage plan until you reach 65, you can switch over to a Medigap plan within that 6 month time period you are 65 years old. You won't have to go through medical underwriting and your premiums will be much more affordable. We hope you found this video helpful. 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