Q: My husband will be 65 on May 27, 2006 and is still employed. He plans to continue working. He's not able to collect full Social Security benefits until he is 65 and 8 months. I turn 65 on August 14, 2006. When are we supposed to apply for Medicare and how will premiums be deducted if we have not started Social Security? We have prescription drug benefits through his employer now. Will we be penalized if we don't sign up by the end of our enrollment period?
A: Although the age for receiving full, unreduced Social Security retirement benefits is rising, age 65 remains the date for Medicare eligibility. The Initial Enrollment period starts 3 months before you turn 65 and lasts for 7 months. Your husband's Initial Medicare Enrollment period has already started and yours will begin in May 2006.
Don't delay! If you miss your Part B (doctor and outpatient services) or Part D (drug coverage) enrollment deadlines, the government will charge a late enrollment penalty for each part, making your premiums higher for the rest of the time you have your Medicare coverage.
Since you have coverage through your employer now, and your husband is still working, Medicare's special enrollment rules may apply. In general, you can keep your employer's coverage and apply for Medicare Part B and Part D during a special enrollment period during the 8 months following the month when the employer coverage ends, or when the employment ends. However, that may not be the case if your husband works for a small company of less than 20 employees. Under that circumstance, to avoid penalties, you and your husband would need to enroll during your initial enrollment period.
You will also need to contact your employer's benefits manager to learn whether you have "credible coverage" or coverage equivalent or better than Medicare Part D. If it is not credible coverage, then you will need to enroll in a prescription drug plan by your enrollment deadline to avoid a penalty. However, if you do have "credible coverage" some employers are warning beneficiaries NOT to enroll in Medicare Part D because they could lose their other health care benefits.
Steering through the system takes time, determination, and a lot of information. Call the Social Security Administration at 1-800-772-1213, or your local Social Security office to learn more about your enrollment deadlines.
March 2006
