A basic guide to signing up for Medicare benefits

Medicare is an essential federal benefit that pays for the cost of insurance. Original Medicare consists of parts A and B that cover hospital and medical costs, respectively. Private insurance vendors also offer Medicare Part C or Medicare Advantage plans to provide for costs that are not included in Original Medicare, and Part D takes care of prescription medication costs. These benefits are made available to seniors after they turn 65, and the federal program specifies dates to ensure a smooth application process. Read on to know more about Medicare enrollment in 2020:

Initial enrollment
Initial Medicare enrollment is open for all those who will turn 65 or already have in 2020. For example, if your birthday is in the month of June, the initial enrollment period for you starts in the month of March and ends in September, the year you turn 65. Medicare initial enrollment always starts 3 months before and ends three months after your birthday month the year you turn 65, giving you a total of 7 months to sign up for the benefits that fall under Medicare Parts A, B, C, and D. The coverage start date varies depending on whether you sign up in the first three months of the initial enrollment period or after you turn 65.

Note that even if you don’t plan to sign up for Original Medicare during the initial enrollment period, you must sign up for Medicare Part B (medical coverage) and D (prescription coverage) to avoid paying penalties. Postponing application is not a suitable option, as you will end up paying an extra 10% of the premium cost as a penalty for every 12-month period of the delay. This penalty is charged throughout the duration of your Medicare coverage, and the long-term costs are a burden you don’t want to bear after retirement.

General enrollment
Medicare affords another opportunity to sign up between January 1 and March 31 every year for all those who missed signing up during the initial enrollment. The coverage for Original Medicare will begin from July 1 of the same year in such cases. In many cases, the initial enrollment period may not coincide with you turning 65, which may affect your eligibility for certain special benefits. Note that general enrollment only pertains to signing up for benefits under Part A (hospital insurance) and part B (medical insurance).

Annual open enrollment
Don’t worry if you want to switch your Medicare Advantage Plan or drop or modify your Medicare Prescription Coverage (Part D). The federal aid program opens another short window between the months of October and December every financial year. In this period, you can also switch from original Medicare to an Advantage plan provided by private insurance companies or vice-versa.

Medicare enrollment for 2020 is already underway, with procedures that started on October 15 being in place through December 7. During this period, you can also change or modify the existing particulars under Medicare that you already applied for in the initial 7-month window or in general enrollment.

Special enrollment
The Special Enrollment Periods (SEPs) enable delayed Medicare enrollment under certain circumstances. If you or your spouse have private insurance provided by an employer, the termination of such a benefit will qualify as a special circumstance. All retirees who lose their employer-provided insurance and people who are no longer covered under their spouse’s insurance can apply for Medicare during the SEPs. You have a total of 8 months to apply for Medicare after your coverage ends under Original Parts A and B. For Parts C and D, you must enroll within a shorter window of 63 days after the coverage ends.