As age catches up to you, it’s more important than ever to review your healthcare options and make the most of your Medicare coverage. With the help of online tools, you can renew your Medicare early and save money on premiums and coverage.
What is Medicare?
Medicare is a government-run health insurance program for Americans aged 65 and over.
Medicare covers some of the costs of healthcare, including hospitalization and doctor visits.
You may be able to get Medicare benefits if you are:
-Age 65 or older
-A U.S. citizen or resident alien
-Insured by a private health insurance plan through an employer
-Receiving Social Security benefits
-Inpatient in a hospital, hospice, or home health care setting
-Paying more than 20% of your income for premiums and copays (out of pocket)
-Not receiving disability benefits from Social Security or another government program
How to Renew Your Medicare Coverage?
Renewing your Medicare coverage is a great way to save money. Here are five tips to help you renew your coverage:
1. Check to see if you’re eligible for a renewal. If you’re over 65 years old, have been continuously enrolled in Medicare, and are not yet entitled to Social Security benefits, you may be able to renew your coverage. You can find out if you’re eligible by checking the “Your Status” section of the Medicare website.
2. Save the information needed to renew your coverage. You’ll need your Social Security number, the type of coverage you want (standard or premium), the date of your original Medicare enrollment, and the date of your current enrollment. You can find this information on the Certificate of Eligibility or on the Medicare plan summary sheet that comes with your prescription drug card.
3. Sign up for a reminder about your upcoming Medicare renewal date. If you don’t remember when your coverage is set to expire, sign up for a reminder from the Centers for Medicare & Medicaid Services (CMS). You can also find information about renewing coverage on the CMS website or by calling 1-800-MEDICARE (1-800-633-4
What are the Benefits of Renewing Your Medicare Coverage?
When you are ready to retire, one of the most important decisions you will make is whether or not to keep your current Medicare coverage. Here are some of the benefits of renewing your Medicare coverage:
-You could save money by renewing your Medicare coverage before it expires. By doing this, you can lock in current benefits and avoid any possible changes that may take place after your coverage expires.
-If you choose to stay on Medicare after it expires, you may have to pay more for coverage than if you had renewed your coverage earlier. This is because the government will no longer subsidize the cost of Medicare premiums for those who have retired.
-Renewing your Medicare coverage also allows you to continue receiving health care from the same provider. If you choose to retire and stop receiving Medicare benefits, you may have to switch providers or search for a new plan that offers similar services at a lower cost.
When is It Time to Renew Your Medicare Coverage?
When is it time to renew your Medicare coverage? That depends on a few factors, but most people should check with their health insurance company or their Medicare enrollment specialist to find out when their current coverage will expire.
Most Medicare policies have a sunset date, which is the earliest date that the policy can be terminated without paying a penalty. The typical policy has a 10-year sunset date, so if you turn 70 in 2020, your Medicare policy would expire in 2025.
If you’re about to turn 70 and don’t have a 2010 or later policy, then you might want to consider getting one before your coverage expires. However, if you wait until after your coverage expires, you may end up paying more for supplemental insurance because premiums for older policies are generally higher.
How Much Does It Cost to Renew Your Medicare Coverage?
It can be cheaper to renew your Medicare coverage early than to buy a private health insurance plan, according to recent analyses by the Centers for Medicare and Medicaid Services (CMS). The early renewal penalty is only $95 this year, so it’s worth considering whether you’re eligible and whether it would make financial sense to renew now.
To find out how much it would cost you to renew your Medicare coverage, use our online tool at www.medicare.gov/participate/early-renewal-penalty/.
The tool will estimate your premium, deductible, and out-of-pocket costs for a single person aged 65 or older. You can also compare these costs with the estimated costs of private health insurance plans offered through the marketplace in your state.
The estimates are based on a hypothetical individual who has no medical conditions and receives Social Security benefits equal to 100 percent of the federal poverty level (about $16,600 for an individual in 2018). Your actual costs may be different because of your age, health status, and other factors.
Conclusion
If you are thinking about renewing your Medicare early, here are a few things to keep in mind. First of all, if you are 55 or older, the penalty for not having coverage during the year has been eliminated. This means that there is no longer a financial penalty for making the choice to renew your coverage early. If you are under 55 years old and have retired, there is still a 5% premium surcharge for those choosing to renew their coverage before the deadline (which is January 15th of each year). Finally, if you make too much money to qualify for lower premiums based on your income level, there may be additional charges associated with enrolling in Medicare Part D plans. However, by following these tips and staying up-to-date on changes to Medicare policy, it should be relatively easy to save money by renewing your coverage early again this year!