Now more than ever, it is important to have a reliable health insurance plan. Without insurance, you risk paying hundreds, if not thousands of dollars if you need medical care. While there are many private insurance companies to choose from, these plans are often too expensive, especially if you are on a limited budget.
Fortunately, the federal government offers affordable insurance for lower-income applicants through Medicare. As of writing, over 45 million Americans are enrolled in the program.The administration process is simple, going through the Social Security Administration (SSA). There are several Medicare plans to choose from, each with different types of costs and coverage.
A common misconception regarding Medicare is who can apply. While many of the applicants are senior citizens, Medicare is not exclusively for individuals over the age of 65. Part of the misconception comes from several Medicare plans being available for free when you reach retirement age, but it is still possible to apply for Medicare before retirement.
There are several requirements you must meet in order to apply for Medicare under the age of 65. These are:
- You receive disability income, either from Social Security or through the Railroad Retirement Board.
- You suffer from End-Stage Renal Disease (ESRD).
- You are diagnosed with Lou Gehrig’s disease (ALS).
In addition to having either ALS or ESRD, you must also have paid into Medicare for at least 10 years. If your spouse paid into Medicare, you still qualify for coverage. This requirement is also waived if you are a dependent and your caregiver meets the requirement.
If you are eligible for Medicare coverage, you do not have to pay anything for hospital coverage. Prescription drug costs are also covered, as well as medical insurance. Additionally, you can apply for extra coverage through Medicare Part B, which focuses on expenses relating to medical disabilities.
Medicare Part A does not have any charges, but Part B has a monthly premium. You must also enroll during a special enrollment period. The enrollment period begins each year, starting at October 15th and running until December 7th.
During this period, you can also make changes to your existing plan if you already receive Medicare coverage. As long as you apply during the enrollment period, your coverage will automatically begin on January 1st.
There are some exceptions to the open enrollment period. You can qualify for special enrollment if you meet specific circumstances, such as losing your previous insurance policy. In these circumstances, your coverage may begin sooner.
Additionally, it is possible to apply for Medicare outside the open enrollment, but you will be charged a penalty fee and may have to wait longer for your coverage to begin. More information about Medicare costs, as well as the exact details of each Medicare plan are covered in the later slides.
