Applying for Social Security & Medicare
- Generally, you should apply for Social Security retirement benefits three months before you want your benefits to begin. Even if you don’t plan to receive benefits right away, you should still sign up for Medicare three months before you reach age 65.
- If you were born before 1938 and you meet all other requirements, you can receive benefits beginning with the first full month you are age 62. However, if you choose to begin receiving benefits before age 65, your benefits will be reduced to account for the longer period over which you will be paid.
- The full retirement age is 65 for persons born before 1938. The age gradually rises until it reaches 67 for persons born in 1960 or later. Social Security benefits are payable at full retirement age (with reduced benefits available as early as age 62) for anyone with enough Social Security credits. As you work and pay taxes, you earn "credits" that count towards eligibility for future Social Security benefits. You can earn a maximum of four credits each year. Most people need 40 credits (10 years of work) to qualify for benefits. People who delay retirement beyond full retirement age get special credit for each month they don't receive a benefit until they reach age 70.
- To find out what your retirement age is, use the Social Security Retirement Age Chart at www.ssa.gov/retirechartred.htm
- You should speak with a Social Security representative in the year before you plan to retire. It may be to your advantage to start receiving your retirement benefits before you actually stop working.
- To file for Social Security benefits, get information, or speak with a Social Security representative, call the toll-free number- 1-800-772-1213. You also can call that number to set up an appointment to visit your local Social Security office. The lines are busiest early in the week and early in the month, so, if your business can wait, it's best to call at other times.
- When you file for benefits, you need to submit documents that show you're eligible, such as
- a birth certificate for each family member applying for benefits,
- a marriage certificate if your spouse is applying, and
- your most recent W-2 form (or tax return if you’re self-employed).
- Social Security Administration treats all calls confidentially - whether they are made to the toll-free numbers, or to one of the local offices.
A Quick Look At Medicare
- Generally, you should apply for retirement benefits three months before you want your benefits to begin. Even if you don't plan to receive benefits right away, you still should sign-up for Medicare three months before you reach age 65.
Medicare Has Two Parts
What is Medicare Part A? Part A (Hospital Insurance)
- Part A helps pay for:
- Care in hospitals as an inpatient,
- critical access hospitals,
- skilled nursing facilities, hospice care, and
- some home health care.
- Cost: Most people get Part A automatically when they turn age 65. They do not have to pay a monthly payment called a premium for Part A because they or a spouse paid Medicare taxes while they were working.
What is Medicare Part B? Part B (Medical Insurance)
- Part B helps pay for:
- Doctor's services,
- outpatient’s hospital care, and
- some other medical services that Part A does not cover, such as
- the services of physical and occupational therapists,
- and some home health care. Part B helps pay for these covered services and supplies when they are medically necessary.
- Cost: Most people will pay the standard monthly Part B premium ($93.50 in 2007). However, some people will pay a higher premium based on their modified adjusted gross income. Your monthly premium will be higher if you file an individual tax return and your annual income is more than $80,000, or if you are married (file a joint tax return) and your annual income is more than $160,000. These amounts change each year.
In some cases, this amount may be higher if you did not choose Part B when you first became eligible at age 65. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but did not sign up for it, except in special cases. You will have to pay this extra amount for the rest of your life.
Enrolling in Part B is your choice.
- You can sign up for Part B anytime during the 7-month period that begins 3 months before you turn 65. Visit your local Social Security office, or call the Social Secruity Administration at 1-800-772-1213 to sign up. If you choose to have Part B, the premium is usually taken out of your monthly Social Security.
- If you did not take Part B when you were first eligible for Medicare at age 65, you may sign up during a General Enrollment Period. This period runs from January 1 through March 31 of each year. Remember, the cost of Part B may go up 10% for each 12-month period that you could have had Part B but did not take it, except in special cases (see below). You will have to pay this extra amount for the rest of your life.
- You can sign up for Part B at your local Social Security office. Your Part B coverage will start on July 1 of that year.
- If you didn't take Part B when you were first eligible because you or your spouse worked and had group health coverage through an employer or union, you can sign up for Part B during a Special Enrollment Period.
The Special Enrollment Periods when you can sign up are:
1. Anytime you are still covered by the employer or union group health plan, through your or your spouse's current or active employment.
2. During the 8 months following the month when the employer or union group plan coverage ends, or when the employment ends (whichever is first).
3. If you are disabled and working (or you have coverage from a working family member), the Special Enrollment Period rules also apply.
4. Most people who sign up for Part B during a Special Enrollment Period do not pay higher premiums. However, if you are eligible, but do not sign up during the Special Enrollment Period, the cost of Part B may go up.
Medicare Part D
Outpatient prescription drug plan called - Medicare Part D -began on January 1, 2006. Medicare has contracted with private companies to offer these drug plans. Enrollment is voluntary, but you must have Medicare Part A or B to be eligible. If you enroll late, you may have to pay a higher premium. If you have a certificate of creditable coverage from your employer plan or other plan, you will not pay the higher premium.
You will pay a monthly premium to join a plan and may have a $265 annual deductible. Then you pay 25% and your plan pays 75% of your annual drug costs until you reach $2,400. The most you have to pay out-of-pocket in the "coverage gap" is $3,051.25. Once the out-of-pocket limit is reached, you will have "catastrophic coverage". This means that you only pay a coinsurance (like 5% of the drug cost) or a copayment (like $2.15 or $5.35 for each prescription) for the rest of the calendar year. Low-income beneficiaries may be eligible for reduced cost sharing and more generous coverage by Medicare.
Have questions? Contact Pat Victoria at retire@etal.uri.edu or call her at 874-2921.
