In previous articles, we have discussed the timing of joining Medicare and the various enrollment periods. Today, I want to explain why I recommend applying for Medicare Part A, even if you are not planning to switch to full Medicare at age 65.

By way of quick review, those eligible for Medicare can apply for Parts A and B effective the first day of their birth month in the year they turn 65. This process should begin about 90 days in advance.

If you are covered under a group health plan, you likely have what is called “creditable coverage,” and there is no requirement to move to Medicare. Anyone with credible coverage can delay joining Medicare and still avoid a late enrollment penalty. You can join Medicare later through a Special Enrollment Period which we outlined in a previous blog. 

Credible coverage does NOT include a temporary COBRA health plan. If you are 65 or older and enrolled in COBRA, you can expect to pay a late enrollment penalty for life. 

What Is Part A?

Medicare Part A helps cover hospitalization costs, specifically inpatient hospital admissions. It does not apply to emergency room visits or outpatient services; only times when you are admitted into a hospital room.  

Why It May Make Sense to Apply

For many people who have worked at least 40 quarters and paid FICA taxes, Part A has no premium. That is why I see little drawback in applying.

While Part A may help if you are admitted to the hospital, it may also streamline the process later when you are ready to apply for Part B.

For those reasons, I generally recommend that people apply for at least Part A when they become Medicare-eligible, regardless of whether they plan to go on to full Medicare right away.  

There is one important caution.

If you are covered through an employer with fewer than 20 employees, Medicare may be counted as your primary insurance. More carriers are enforcing this. In that case, delaying Medicare can create problems if you have a major hospital claim. That situation should be reviewed carefully.  

If your group insurance has 20 or more employees, Medicare is generally secondary.

One More Recommendation 

I also recommend creating an account at SSA.gov, regardless of your age.

SSA.gov is the government website where you apply for Medicare and Social Security benefits. It takes about 15 minutes to set up, and doing it early may save significant time in the future, especially as security requirements continue to increase.  

Sometimes, small steps make things much easier later.

If you need assistance deciding whether Medicare Part A makes sense for you, or if you simply want help applying, we are here to help. Give us a call at 954-775-0275 to Period, whdiscuss your options.