34 KIPLINGER’S PERSONAL FINANCE^ 05/2017MONEY
ABOUT 10,000 PEOPLE TURN 65 EVERY DAY,
and along with that milestone comes a
challenge: You need to get up to speed
on the many ins and outs of Medicare.
There’s a lot at stake. You have to pick
supplemental insurance to fill Medi-
care’s coverage gaps, and you might
have to switch to less-expensive ver-
sions of some medications. If you don’t
sign up by the deadline or you make
other mistakes, you could end up with
lifetime penalties, denied claims or
big bills you shouldn’t have to pay.
Every day, my in-box is filled with
questions from readers about the
nuances of Medicare. The following
frequently asked questions will help
you navigate the system and deal with
tricky issues.SIGN-UP QUESTIONS
Do I need to sign up for Medicare, or will I
be enrolled automatically? If you signed
up for Social Security before age 65
(eligibility for full benefits currently
begins at age 66), you will automati-
cally be enrolled in Medicare parts
A and B and receive your card three
months before your 65th birthday.
Part A covers hospitalization and
is generally premium-free; Part
B covers outpatient care, such
as doctors’ visits, x-rays and
tests, and costs $134
a month for people
who enroll in 2017
(or more for high
earners).
Everyone
else needs
to takesteps to enroll—or face a lifetime late-
enrollment penalty (unless you’re still
working and have employer coverage;
see below). Go to http://www.socialsecurity
.gov to sign up anytime from three
months before until three months
after you turn 65 (your “initial enroll-
ment period”), even if you are waiting
to file for Social Security benefits.I’m still working. Do I need to sign up?
That depends on the size of your com-
pany. If you or your spouse (if you’re
covered by your spouse’s insurance)
is still working for a firm with 20 or
more employees, the employer’s insur-
ance is your primary coverage, and
Medicare is secondary and can fill any
gaps in coverage. You aren’t required
to sign up for Medicare at 65,
and you won’t have a late-
enrollment penalty aslong as you sign up within eight
months of leaving your job and losing
work-based coverage (or losing cover-
age under your spouse’s insurance).
If you work for a large employer and
are happy with its coverage, you may
decide to delay signing up for Part B.
(Many people still sign up for Medi-
care Part A at 65.) But the rules are
different if you work for a company
with fewer than 20 employees. In that
case, Medicare generally becomes
your primary coverage at age 65, and
you need to sign up for Part A and Part
B while you’re still working. Some
small employers negotiate with insur-
ers to keep employee coverage pri-
mary for workers after age 65, but this
is unusual; get it in writing from your
boss before you delay signing up.
Also note that you can’t delay sign-
ing up for Part A if you’re already re-
ceiving Social Security benefits and
were automatically enrolled in Medi-
care—even if you’re still working.I have a health savings account at work.
Can I still contribute to my health savings
account after I turn 65? Yes, as long
as you haven’t enrolled in Medicare.
If you are able to delay signing up
for Medicare parts A and B (see
above), you can continue contribut-
ing to an HSA. Before you decide,
determine whether the HSA’s
tax breaks, any employerYour Medicare FAQs
When you turn 65, you have to master a new health care
system. We’re here to help. BY KIMBERLY LANKFORD
HEALTHROSE BLAKE