More Medicare Discussion from Our Roundtable Event … Turn Down Part B at Your Own Risk

As a follow-up to last weeks Medicare Part A and B overview, today we dig deep into Part B. Our speaker has several very strong important points which we highlight.

Let’s roll!

Medicare Basics Focusing on Part B

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• Medicare Age 65 Commences for ALL
• Part A = Hospital In Coverage – No Cost due to FICA tax subsidization
• Part B = All Important as it has a cost starting at about $105/month (about 1/4 of the cost, with 3/4 of the cost subsidized by the government with a sliding upward cost offset scale amount at certain income levels)
  • Since there is a cost, you can turn down Part B
  • Turning down Part B is the biggest mistake you will make in your life, according to Mr. Tom Clark
  • After 65 and over, Part B always pays first (if you turn down Part B because you have a company plan you MAY be liable for what Part B would/should have paid first)
  • Turning down Part B upon availability, MAY cause you a delay (first 3 months of next year Jan- March) and the premium may be higher
    • One exemption: Continuing working past age 65 for an employer with more than 20 employees does exempt you from the above mentioned restrictions and possible higher premiums, just remember to contact Social Security at least three months before you retire to let them know so that Part B will begin paying first upon your retirement

Have a Great Day!

John A. Kvale CFA, CFP