Medicare is the primary health insurance for about 42 million people age 65 and older and many disabled people. Many employees often ask the following questions:
No. Medicare eligibility begins on the first day of the month that you turn 65. This age is not scheduled to change even though the full retirement age for Social Security benefits is gradually rising to 67.
Consider these typical scenarios:
Yes, you can drop Part B if you are working and covered by your employer group health insurance. If you sign up for Medicare Part B again during your Special Enrollment Period (SEP), you will not have to pay a higher Part B premium. The SEP is any time that you are still covered under the group plan based on current employment or up to eight months after this coverage ends.
An income-related Part B provision was included in the Medicare Prescription Drug Improvement and Modernization Act of 2003. The standard Medicare Part B monthly premium is $93.50 for 2007.
The income-related Part B premiums for 2007 are $105.80, $124.40, $142.90 or $161.40, depending on how much your individual beneficiary’s income exceeds $80,000 (or a married couple’s income exceeds $160,000). Those with incomes greater than $200,000 (or $400,000 for a married couple) pay the highest premiums. For example, a beneficiary at the highest income level in 2007 would pay $1,936.80 per year in Part B premiums. 