What You Need to Know About Medicare Coverage
Every American employee have the Medicare tax deducted by their employer as required by the law. There are many people, however, who have no idea of how the tax will come to be of help to them in the future. It is important therefore to understand that Medicare tax works to provide health insurance for the aged who qualify for the same. One thing people need to know is that the Medicare tax is not a yesterday thing as it starts to become effective in 1965 and has all along worked to provide health insurance for those over 65 years of age as well as those determined as disabled.
The Medicare program works in such a way that when you retire or determined to no longer be physically fit to work, it provides you with the health insurance you need. There is the need to know that one is needed to enroll for this program as it is not automatic. Also you need to understand that once you enroll, there are monthly premiums you will be paying. Another thing is that there is a penalty when you enroll late than it is scheduled hence the need to be time conscious.
It is crucial to know that when you have retired or be determined disabled, you first qualify for Medicare Part B or the medical coverage. There is a Part A which is different from part be and usually attracts its own cost different from those of part B. When you are enrolling for the first time, there is usually a seven month period given to do so. With the first part, you need to start enrolling 3 months before you are sixty-five and the next three when you have already retired. However, it is important to know that when you enroll later than these dates you get a late enrollment penalty when you do so.
After you have enrolled, there is a Medicare open enrollment that usually begins on a specific day of October and ends on a given day in December. It is during this time that one has a chance to choose a different plan without the need of Medicare Special Enrollment Period. You can decide whether you want a separate Part A, B and D plan which includes drug medication coverage or and an all-inclusive Medicare Advantage Plan.
When you have qualified for Medicare, it is also important to know that you are also eligible to the Medicaid program too. This special situation is referred to as dual enrollment and there are millions of who are eligible for these two benefits. The other thing that you need to understand is that you can retire, get the Medicare coverage and still work so long as you make up to a given income.
There is the need to work closely with an informed person to help you understand Medicare plans before choosing one.