Recently I met with an individual who was about to turn 65. Because she is receiving social security benefits, she was automatically sent her Medicare Part A (hospital) and Part B (outpatient) card. She wasn’t aware, however, that her tax return (note: Social Security does a 2 year look back of tax returns to determine whether an individual will be paying the minimum for Part B or be subject to a higher Part B premium because their tax return reflected a higher adjusted gross income) did reflect a higher adjusted gross income resulting in a higher premium for Part B as well as an IRMA (surcharge) for the ability to have prescription drug coverage.
As a result, she requested enrollment only on Part A for now, deciding to remain on her spouse’s company health insurance (after also confirming that the prescription drug coverage under her husband’s employer plan states that the drug coverage is creditable/comparable to a Medicare prescription drug plan). When she is ready to leave her husband’s employer plan, she will be entitled to a special election period onto Part B, no penalty.
Medicare has neither reviewed nor endorsed this information. By contacting Barbara Hogan Insurance Services Inc. (OH44806) you will be directed to a licensed insurance agent.