Marcus P. Miller, CFP®
Navigating Medicare: A Step-by-Step Guide to Applying and Understanding Your Coverage
The Medicare program is a great way for seniors and those with specific disabilities to have access to health insurance coverage. However, navigating the enrollment process can be overwhelming. This blog post will provide a step-by-step walkthrough of how to enroll in Medicare, an explanation of the different parts, and advice on what to consider when choosing a plan that best suits you. By taking the time to review this guide, you'll be well-informed about how to enroll in Medicare and have a better understanding of your options.
Eligibility for Medicare
In order to qualify for Medicare, you must meet one of the following criteria:
be 65 or older
be under the age of 65 with specific disabilities
have end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS)
United States citizens and permanent legal residents who have lived in the U.S. for at least five years are generally eligible for Medicare if they are 65 or older. Those who receive Social Security benefits will automatically be enrolled when they turn 65. If you have certain disabilities such as kidney failure that requires dialysis or a kidney transplant, or ALS, then you may be eligible at an earlier age. However, there might be restrictions on eligibility depending on immigration status. In the following section, we will examine what each part of Medicare covers.
Parts of Medicare
Medicare is made up of several different parts, each of which covers different healthcare services. Understanding what each part covers is essential to choosing the best Medicare plan for your needs. Here is a brief overview of the different parts of Medicare:
Medicare Part A (Hospital Insurance): Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care.
Medicare Part B (Medical Insurance): Part B covers doctor visits, outpatient care, preventive services, and medical equipment.
Medicare Part C (Medicare Advantage): Part C is an alternative to Original Medicare (Parts A and B) and is offered by private insurance companies approved by Medicare. These plans must cover everything that Original Medicare covers, but they may also include additional benefits such as dental, vision, and hearing coverage.
Medicare Part D (Prescription Drug Coverage): Part D is a prescription drug plan that helps cover the cost of prescription medications. These plans are offered by private insurance companies approved by Medicare.
It's important to note that while Original Medicare (Parts A and B) covers many healthcare services, it doesn't cover everything. For example, it doesn't cover dental, vision, or hearing services, and it has deductibles and copayments that you may be responsible for. If you need more coverage than what Original Medicare provides, you may want to consider enrolling in a Medicare Advantage (Part C) or a Medicare Supplement plan (Medigap).
Medigap, sometimes referred to as Medicare Supplement Insurance, is a type of health insurance intended to help cover the out-of-pocket costs not covered by Original Medicare. This form of coverage comes in 10 standardized plans labeled A through N and offer a variety of benefits while still providing the same coverage regardless of the insurance company offering it. It's important to note that Medigap policies do not include prescription drug coverage and you cannot have both a Medigap policy and a Medicare Advantage plan at the same time. You are eligible for Medigap during your Open Enrollment Period which begins when you turn 65, however, if applying after this period insurance companies can use medical underwriting to determine whether or not they will provide you with coverage.
Important note about Medicare Part D:
It's essential to enroll in Medicare Part D, a prescription drug coverage plan offered by private insurance companies and approved by Medicare, as soon as you are eligible. Failing to do so could result in a late enrollment penalty that adds up over time and is added to your monthly premium for the duration of your Part D coverage. Additionally, if you do not sign up for Part D when you become eligible, you will be responsible for paying the full cost of all prescription medications until you finally enroll. To avoid this, take advantage of your initial enrollment period or an enrollment period that occurs later on; specifically during the Annual Enrollment Period (AEP) from October 15th to December 7th each year or during a Special Enrollment Period (SEP).

Applying for Medicare
The process of applying for Medicare is relatively straightforward, and there are several ways to do it. Here's a step-by-step guide to applying for Medicare:
Determine your eligibility: Before you apply for Medicare, you'll need to determine if you are eligible. If you are 65 years of age or older and have worked and paid into Social Security for at least 10 years, you should automatically be enrolled in Medicare Parts A and B. If you are under 65 and have certain disabilities, you may also be eligible for Medicare.
Decide when to enroll: If you are not automatically enrolled in Medicare, you will need to enroll during your Initial Enrollment Period (IEP). Your IEP is a seven-month period that begins three months before the month you turn 65 and ends three months after the month you turn 65.
Choose how to enroll: You can enroll in Medicare online, by phone, or in person at your local Social Security office. To enroll online, visit the Social Security website and follow the instructions. To enroll by phone, call Social Security at 1-800-772-1213. If you prefer to enroll in person, you can visit your local Social Security office.
Choose your Medicare plan: Once you have enrolled in Medicare Parts A and B, you can choose to enroll in a Medicare Advantage (Part C) or a Medicare Supplement plan. If you choose to enroll in a Medicare Advantage plan, you will need to do so during the Annual Enrollment Period (AEP), which runs from October 15 to December 7 each year. If you choose to enroll in a Medicare Supplement plan, you can do so at any time.
Understand your coverage: It's important to understand what services are covered by your Medicare plan and what costs you may be responsible for. If you have any questions about your coverage, contact your Medicare plan provider.
It's important to note that if you miss your Initial Enrollment Period and don't have a valid reason for doing so, you may face penalties for late enrollment. Additionally, if you miss the Annual Enrollment Period for Medicare Advantage plans, you may not be able to enroll in a plan until the next AEP.
Enrolling in Medicare is an important decision that can have a significant impact on your health and finances. By understanding the different parts of Medicare, your eligibility, and your enrollment options, you can make an informed decision about your coverage.
Remember, Medicare Part A is usually free for those who have worked and paid into Social Security for at least 10 years, while Medicare Part B requires a monthly premium. You can also choose to enroll in a Medicare Advantage plan (Part C) or a Medicare Supplement plan to help cover some of the costs that Medicare Parts A and B don't cover. Part D is available from insurance companies and is generally a good idea for most situations, even if you don't have expensive prescriptions at 65. When enrolling in Medicare, be sure to enroll during your Initial Enrollment Period (IEP) to avoid penalties for late enrollment. And if you have any questions or concerns about your Medicare coverage, don't hesitate to reach out to the Social Security Administration, a licensed insurance agent, or your Certified Financial Planner.