When you think about retiring, where will you get health insurance? “Simple,” you might reply, “I’ll go on Medicare.” Well, welcome to an intricate decision, especially if you (or your spouse) keep working past the usual retirement age. Medicare is for people 65 and up and comes in 4 parts. Part A, covers you if you are admitted to a hospital and is “free’ and supported by the payroll tax, but also has copays and deductibles. Part B, which covers doctors’ bills, and Part D, which covers prescription drugs, charges a monthly premium. Here’s a couple of things to consider before you pull the trigger on your Medicare benefits
Still Working Past Age 65?
If you (or your spouse) are still working at 65 or beyond and are covered by an employer health plan, consider signing up for Medicare Part A with NO premium cost. It can cover the portions of the hospital bills that your employer plan doesn’t pay once you’ve met the Medicare deductibles.
Put a Pause On Part B
If you reach your full Social Security retirement age, say 66, and are still working, you have another option. You can augment your salary by filing for your FULL Social Security retirement benefit (at that age, payments are not reduced for people with earnings). When you file, you’ll be signed up, automatically for Medicare Parts A and B. Keep the free Part A. But if you’re still covered by an employer plan, call Social Security and decline Part B. If you are not sure which options is best or have other questions about your Medicare just give us a call.
Thanks for reading!
P.S. This article comes from Ray’s Retire Right Report that is sent out to all our clients monthly.
To get Ray’s Report click HERE!