If you have health insurance coverage through the Public Health Exchange, you must switch to Medicare when you approach 65. However, there are some things to be aware of before you do. Planning ahead will help you avoid any unnecessary fees or stress.
Medicare is required for adults 65 and older unless they have another qualifying plan. Before you cancel your Public Health Exchange coverage, you should carefully review your existing policy and see whether it is a good idea to stick with your current provider.
Learn about the different parts of Medicare before you buy an additional policy as well. Part A (Hospitalization) has no premium, but Part B usually does. The average monthly Part B Medicare premium in 2022 will be around $158.50, so you may need to budget ahead of time. The premiums for a supplemental plan (Medigap) range from $100 to over $400. It is important to weigh all your options carefully.
While you may choose to buy a Medigap plan from a private insurer, you still need to sign-up for Part B in order for you not to incur any penalties. Late Medicare enrollment can cost you 10% more per month if you don’t sign up in time. While Medicare Part D (Prescription Drug Coverage) isn't mandatory, you may also face higher premiums if you sign up after your initial eligibility period.
Before you cancel your insurance entirely, you should have a check-up to determine your needs. While Medicare Advantage is more affordable for someone in good health, it may quickly become too expensive if you are diagnosed with an illness or need hospitalization.
As you transition into Medicare, all of the details, deadlines, and information can be hard to keep track of. Don’t try to do it alone. To learn more about your options when ready to switch from the Public Health Exchange to Medicare, contact our office to receive a complete evaluation of your options.