Toni:
Recently, I read an article online about the myths of Medicare from E-Health Insurance. I am a 65 year old engineer who retired from BP about 3 years ago. I am now working on a contract basis on various oil related projects
Can you elaborate on the Medicare myths? I have recently been diagnosed as having Parkinson’s and want to be sure I make the correct choice.
I do not understand why I need to enroll in Medicare, since I have excellent company retirement health insurance.
Looking forward to what you have to say…John from the Memorial area
Hello John:
Below is my response to the myths in the E-Health Insurance article:
- Myth #1… A person can enroll in Medicare any time after they’re 65 without penalty…FALSE!! This idea is absolutely wrong. If you are not working fulltime for a company with true group benefits and wait later than 65 years old and 90 days to enroll in Part B, then you can receive a penalty of 10% for each 12 month period or year that you did not enroll in Part B. That penalty lasts for the rest of your life.
**John since you are not working fulltime for the company you have retirement benefits with I would advise you to enroll in both Medicare Parts A and B to keep from receiving the late enrollment Part B penalty. Toni Says: If you or your spouse are not working fulltime with true company benefits be sure to enroll in Parts A and B by the time you turn 65. Wait 90 days past turning 65 and you will get a penalty!
- Myth #2: Medicare is free…FALSE!! The Medicare payroll tax that you have been paying for years is for Part A only! Part B has a premium which is means tested due to income. Most on Medicare are paying $104.90 each month for Part B, but there are 10% that meets the means tested income amount and has to pay more than $104.90 each month. If you do not pay the Part B premium, then you will not have any of the Part B benefits.
Toni Says: Nothing is free!! You worked and paid taxes into the Social Security system.
- Myth #3: Most baby boomers think Medicare is just like regular health insurance plans…FALSE!! Medicare is totally different than traditional group or individual health insurance. Medicare has two Parts A & B. Part A has a $1,216 deductible 6 times a year for an inpatient hospital stay. Medicare Part B includes doctor’s services such as office visits and doctor performing surgery, outpatient services and surgery, scans, x-rays, chemotherapy and radiation, wheel chairs, walkers and the list goes on. There is a deductible for Medicare Part B of $147.00 once a year with Medicare picking up 80% and you pay 20% of the Medicare approved amount with no co-insurance or stopping. Not like the typical 80/20 to $5,000 with a stop lost. The 20% just keeps on going!!
Toni Says: Medicare is completely different than health insurance. The out of pocket can be huge. Learn about the different Medicare plan options to pick up your out of pocket costs.
- Myth #4… Medicare covers everything. FALSE Most baby boomers are surprised to find out that Medicare does not cover long term care, routine dental care, dentures, cosmetic surgery, exams for hearing or hear aids and acupuncture. Medicare only covers what is medically necessary.
Toni Says: Medicare will only pay for medical expenses and if Medicare doesn’t pay, then your Medicare supplement or Medicare Advantage plan will not pay either.
Toni King, author of the new Medicare Survival Guide®, which is a simple guide that puts Medicare in “people” terms, is on sale at www.tonisays.com Email questions to www.tonisays.com/ask-toni or call 832/519-TONI (8664).
