Whether you’re turning 65 soon or it’s still a few years away, you need to know the options available to you as you transition from the Marketplace to Medicare for your health insurance.
Investigate your options as soon as possible and have a plan to enroll on time.
If you do nothing, you may pay higher costs when you enroll in Medicare. That’s because you’ll incur a penalty for late enrollment.
The penalty is generally 10% of your Part A premium and you’ll have to pay it for twice the number of years you were eligible and didn’t enroll.
For example, if you waited a year to enroll in Medicare, you could pay a 10% penalty for two years.
Once your Medicare eligibility begins and you enroll in a plan, you can end your Marketplace coverage without incurring a penalty.
If you keep your Marketplace coverage, you won’t get tax credits or other savings. This means you’ll likely pay more for the Marketplace policy.
Navigating your options
As you’re planning for the transition, you’ll have two options:
- Obtain a Medicare supplemental plan.
- Choose a Medicare Advantage plan.
Applying for Medicare
1. Know your enrollment period
Your Medicare eligibility period is three months before your 65th birthday, the month of your birthday, and three months after that date.
This gives you a full seven months to enroll in Medicare. If you miss the enrollment period, you will incur a penalty fee.
2. Fill in the gaps
Coordinate coverage so your Medicare plan will take effect immediately after the Marketplace coverage ends. You don’t want to have a gap in health care coverage, which could leave you financially exposed and cause undue stress.
3. Know how to cancel
If you’re the only person on the policy, go ahead and cancel it. Keep in mind that it could take approximately 15 days for the cancellation to become effective.
However, if you have other family members on the plan and they aren’t yet eligible for Medicare, you should cancel coverage only for yourself.
Seek guidance you can trust
It’s important to get expert advice when navigating the transition from Marketplace to Medicare to avoid incurring penalties and gaps in coverage, as well as securing the best plan you can get.
Talk to the Medicare experts at UROne Benefits today by calling 1-800-722-7331 to get the help you need to successfully navigate the transition.