Enrolling in Medicare Part A in a timely manner is important or else you may pay late penalties. Otherwise, if you’ve worked a certain number of years, paid Medicare taxes, and have reached the age of 65, Medicare Part A is free of charge.
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Among the many unexpected expenses in life are hospital stays. With the average hospital stay per day costing $2,607 and the average stay lasting four days, it’s easy to see how even everyday accidents and incidents can become financially devastating.
But Medicare Part A can help, and we’re going to explain how, starting with a brief overview of Medicare in general and then moving into how to enroll, why to enroll, and what Medicare Part A covers.
Understanding the limits of Medicare Part A coverage is important before you enroll. Essentially, anything that is optional or voluntary is not covered. This includes:
Medicare Part A coverage is designed to assist with essential medical care related to the hospital. For these other types of procedures, you’ll need to purchase supplemental insurance or pay for them out-of-pocket.
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An important note is that Medicare Part A insurance is not designed for long-term care. If you exceed 90 days of hospital inpatient care, you start using Medicare lifetime reserve days. You are entitled to 60 lifetime reserve days, after which you’ll be required to pay all costs related to your inpatient care.
Everyone at age 65 typically qualifies for Medicare Part A coverage. You may be eligible for Medicare Part A coverage earlier than that, based on certain health reasons such as a disability or end stage renal disease, for example.
Most people become eligible on their 65th birthday but can enroll at any point over a 7-month period: The three months before their 65th birthday, their birthday month, and the three months after.
Enrolling during this period is very important, or else you may have to pay late penalties for the rest of the time you have Medicare Part A coverage and it could delay when your coverage takes effect.
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Enrolling in Medicare Part A insurance is fairly straightforward. You can enroll during the 7-month period around your 65th birthday, or you can enroll during open enrollment in the fall if you miss that period (late penalties may apply).
To enroll, you have three simple options:
Some people may be automatically enrolled into Medicare Part A coverage by the government if they meet certain criteria or if they’re already receiving Social Security, but most have to enroll themselves through one of the options mentioned above.
When your coverage starts taking effect depends on when you enrolled; if you enrolled three months before your 65th birthday, for example, then your coverage starts the day of your 65th birthday.
Medicare Part A enrollment is not mandatory, but it’s a bit tricky to opt-out of it.
You can delay or decline Medicare Part A insurance if you have creditable coverage from another source, such as if you’re still working and receive healthcare coverage from your employer. It’s important to note that some healthcare plans from employers require you to enroll in Medicare at age 65 to help pay for your medical costs, so it’s worthwhile to double-check with your employer/HR.
If you don’t have creditable coverage and you choose not to enroll, enrolling at a later date can incur significant late penalties that apply for the rest of your life. Not opting into Medicare Part A insurance without another source of creditable coverage is risky, especially as you get older. An unexpected trip to the hospital could be incredibly costly without Medicare Part A insurance in place.
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Medicare Part A coverage is designed to give those aged 65 and older coverage for unexpected and essential hospital care so that they can receive the care they need without devastating financial repercussions.
If you don’t have creditable coverage in place already, enrolling in Medicare Part A coverage on time will ensure you have the coverage you may need without paying late penalties. It’s definitely worth consideration if nothing else.
Start by getting a free Medicare Part A quote from us so you know what to expect. We can help. Simply request a quote now.
Claire Smith Claire is a creative entrepreneur with a variety of marketing and content creation skills, including blog and web copy writing, research, and strategy. She has a Masters in Cultural Studies from Queen's University and is known for thinking laterally about marketing, based on her deep knowledge of people and behavior.
