As monumental as it is – turning 65 is daunting when it comes to your health insurance.
To help you navigate through the process I’ve come up with the following:
As long as you are a member in good standing with the VDA, and are actively at work there is no health benefit reason to give up your fully insured plan. The only reason to make the change to Medicare Parts A&B is the savings in premiums. You may also remain on the group plan and apply for a group Medicare Supplement policy, as long as your home address is within Anthem territory.
When you reach 65 and apply for Medicare you will automatically receive part A – the hospital and surgical portion of the coverage. In order to receive part B – the major medical portion, you must apply for it, and there is a separate monthly premium of $88.50 along with a deductible of $124 for 2006.
The deductible and premium should increase in 2007 and each year thereafter.
To pick up the costs that Medicare does not cover, you will also need a Medicare supplement policy; which you will have to apply for. The separate premium is based upon your age, state of residence and sex. You can not have a Medicare Supplement policy until you have acquired part B of Medicare.
To help pay for your medications you will also need to apply for a Medicare part D drug plan. You may apply for this coverage via the internet at Medicare.gov. After signing onto Medicare you will input your residence information, which will take you to the plans that are available in your state. You will then input your medications to see which plan covers the most expensive drug(s), and then which plan covers the majority of your prescriptions. This is the plan you will chose. You chose a plan that fits your own needs. Remember, each state has their own plans for their residents.
At the end of each year the Social Security Administration sends a book called Social Security and You for the next year. The book will answer a lot of the questions you have and tell you about the Medicare Part D drug plans available in your state.
This is only an overview. If you have specific questions please give us a call.