My wife Janet turned 65 years old the 4th of December. She is still working as a nurse and intends to keep working until she is 65 and 9 months old and then apply for Social Security. Does she need to apply for Medicare now? — E.
A: Although the eligibility age for full, unreduced Social Security benefits is rising, age 65 remains the age for Medicare enrollment. Your wife's Initial Enrollment Period started 3 months before she turned age 65 and lasts a total of 7 months, or in her case, through April 4, 2007.
She should immediately sign up for Medicare Part A, which covers hospital costs. If she has health coverage through her employer or yours, Part A may help cover costs not covered under the group plan.
As long as she remains employed and has employer health and drug coverage, she may, however, wait to sign up for Medicare Part B, which covers doctors' and hospital outpatient services, and Medicare Part D drug coverage. She may delay her Medicare Part B and D enrollment period without having to pay a late enrollment penalty. To avoid the penalty she must continue to be covered by an employer health and drug plan, and enroll in Medicare Part B and Part D during the 8 months when either her health and drug coverage, or employment ends, whichever comes first.
Please note, if her insurance is through an employer with less than 20 employees, this rule does not apply, and she should go ahead and enroll now in Part B and Part D.
If she misses her Special Enrollment Period, she will have to wait until the next General Enrollment Period — January 1 through March 31 each year for Part B, and November 15 through December 31 for Part D. She would then have to pay a delayed enrollment penalty that will be added to her premiums for the rest of her life.
In addition to the penalties, she could also lose very valuable protection of her Social Security benefits. Any annual increase in her Medicare Part B premiums that exceeds the amount she receives in her annual COLA would reduce the amount of her Social Security benefits. This would not be the case if she enrolls in Part B during her Initial or Special Enrollment Periods.
The Social Security Administration handles Medicare eligibility and enrollment. She may contact Social Security at 1-800-772-1213 to enroll in Medicare. You may also visit their web site at www.socialsecurity.gov.
January 2007
