Author Topic: Do you know a disadvantage of collecting Medicare before SS?  (Read 1992 times)

meteor

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Do you know a disadvantage of collecting Medicare before SS?
« on: February 26, 2014, 12:54:27 PM »
I saw online that it is possible to collect medicare years before SS.  http://www.ssa.gov/retire2/justmedicare.htm

But I'm not seeing any major disadvantages of this.  Does anyone know of any?  My neighbor just lowered his Kaiser bill from $800 to $200 by activating his medicare.

« Last Edit: February 26, 2014, 12:56:05 PM by meteor »

huadpe

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Re: Do you know a disadvantage of collecting Medicare before SS?
« Reply #1 on: February 26, 2014, 01:43:11 PM »
You should (nearly) always take Medicare at 65.  But that decision is entirely independent of when you take social security.  There is a small convenience in having the Medicare premium come out of your Social Security payment, but the decision of when to sign up for either is unaffected by the other.

HamhockHammock

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Re: Do you know a disadvantage of collecting Medicare before SS?
« Reply #2 on: February 27, 2014, 05:37:55 AM »
Agree with huadpe. In general, you should  consider signing up for at least Medicare Part A at 65. This is premium free hospital insurance.

Medicare part B has a monthly premium and covers things like doctor's visits. If you do not sign up for it during your initial enrollment period around your 65th birthday, then you must wait until another general enrollment period to sign up and you will be penalized with a higher monthly premium based on how long you delayed. However, if you are covered by an employee group health benefit plan through your or your spouse's current work, then you will not be penalized. You will be able to enroll when that group coverage ends.

Part D covers prescription drugs and the gist is generally the same as with Part B. You pay a premium and it is higher for delaying enrollment,  unless you have creditable prescription drug coverage at the time. 

Lots of nuance here depending on your individual circumstances. But, if you're delaying your SS because of work, and that work gives you group health plan coverage, then you should consider filing for just part A and taking Parts B or D, or both, when you stop working.

Hope this helps. I'm not a lawyer. This isn't professional advice. Seek professional advice. Etc. Yata.

Sunshine23

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Re: Do you know a disadvantage of collecting Medicare before SS?
« Reply #3 on: May 14, 2014, 06:08:13 PM »
Just wanted to add a quick note here, because I have been selling Medicare Supplements/Part C & D for almost 4 years now. HamhockHammock has it pretty correct. Although, you do not need to consider signing up - You will be automatically enrolled into Part A at age 65, if you are eligible to receive social security benefits (even if you are not yet taking the money). If you are already taking the money (not that anyone here would do that :) ), you will also be automatically enrolled into Part B. No one should be delaying Part B unless they are on an employer group plan which is very inexpensive (less than $100 per month). There are other factors as well that I would sometimes advise my clients to delay Part B.

Also wanted to say:


I'm not a lawyer. This isn't professional advice. Seek professional advice.


Lawyers wouldn't have a clue. If anyone does need professional advice, feel free ask me. I'm a licensed agent in all 50 states and DC, but I couldn't charge you for my knowledge since this is the MMM forum ;)