Understanding Medicare saves money
PRESQUE ISLE — 2011 marks the year that just over 2.8 million baby boomers turn 65 and become eligible for Medicare. Understanding Medicare and assuring that one makes appropriate decisions can result in significant cost savings and better health care.
Not everyone turning age 65 needs to enroll in Medicare if they continue working and are covered by their employer’s health insurance. They can opt out of Medicare Part B, saving having to pay a monthly premium of $115.40. They also can opt out of Medicare Part D as long as the employer’s coverage for prescription drugs is as good as or better than what Medicare offers. When that person retires and no longer is covered by the employer’s plan, they have a limited period to sign up for Medicare B and D. If they fail to sign up in this period they are faced with a late enrollment penalty. People that continue working and have employer-provided health insurance with high deductibles, costly premiums and co-pays really should look at the Medicare options available to them because they may be better served health-wise for less money.
Signing up for Medicare is easy. You should make sure you are signed up three months before your 65th birthday. You can call Social Security toll free at 800-772-1213 or visit the local office at 365 Main St. in Presque Isle. Application can be made on-line at www.socialsecurity.gov/retirement.
Once you’ve enrolled in Medicare you need to choose how you will get your Medicare coverage. Now you have several decisions to make and the wrong decision can be costly. Fourteen insurance companies offer 75 Medicare supplement (Medigap) plans. Do you need one and which is best for you? Prescription drug coverage is available through 15 companies offering 27 different plans. Not taking prescription drug coverage now will result in severe late enrollment penalties in the future. Medicare Advantage plans are available with HMO and PPO options — some with drug coverage and some without.
The Aroostook Agency on Aging can help with questions about Medicare and options available. The agency offers free public workshops where Medicare and the various insurance and health care options are explained. Benefits that provide extra help on medical and prescription costs will be covered. People can get experienced and independent guidance so they can make the decision that is best for them without the pressure of someone trying to sell a product.
The next Medicare workshop is Tuesday, March 1, at 3 p.m. and repeated at 7 p.m. in Presque Isle at The Gathering Place located at 33 Davis St. To pre-register and assure information materials are available for you, call 764-3396.
