Many people wait until they are about to turn 65 before thinking about Medicare. However, planning can begin earlier, especially if retirement, income changes, employer health coverage, or prescription costs may affect your choices.
Starting at age 63 gives you time to understand the road ahead and make informed decisions before Medicare begins.
Age 63: Understand IRMAA and Plan Ahead
One important reason to begin planning early is IRMAA, the Income-Related Monthly Adjustment Amount.
IRMAA is an additional amount some higher-income beneficiaries pay for Medicare Part B and Part D. Medicare generally uses the income shown on your tax return from two years earlier to determine whether IRMAA applies.
For example, the income you report at age 63 may affect what you pay for Medicare at age 65.
You can review the current IRMAA income brackets on Medicare.gov.
At this stage, it can be helpful to review:
- Your expected retirement date
- Income from wages, investments, retirement accounts, or a home sale
- Social Security timing
- Whether a retirement or income change may affect your Medicare costs
Age 64: Review Your Health Coverage Plan
If you are still working and have health insurance through your employer or a spouse’s employer, review how that coverage may work once you become eligible for Medicare.
If you plan to retire before age 65, think ahead about how you will cover the time between employer coverage and Medicare eligibility. Marketplace coverage may be available, but costs can vary based on income and other factors.
Employer or spouse coverage may be a more affordable option for some people until Medicare begins. Before making a decision, confirm your options with your employer’s benefits office.
Age 65: Know Your Enrollment Timeline
Your Initial Enrollment Period lasts seven months:
- The three months before the month you turn 65
- The month you turn 65
- The three months after the month you turn 65
Missing this enrollment period may lead to a gap in coverage or a late-enrollment penalty for Part B or Part D, depending on your situation and other coverage.
Some people are enrolled automatically in Medicare Part A and Part B. This generally applies if they are already receiving Social Security or Railroad Retirement Board benefits at least four months before turning 65.
If you are not automatically enrolled, you may need to sign up through Social Security. If you or your spouse are still working and have employer coverage, confirm whether you can delay Part B without a penalty before making that decision.
You Do Not Have to Figure It Out Alone
Medicare decisions involve more than enrolling in Parts A and B. Your doctors, prescriptions, preferred pharmacies, health needs, budget, retirement timing, and other coverage all matter.
Planning early gives you more time to understand your choices and prepare with confidence.
To schedule a Medicare planning conversation, schedule an appointment at https://calendly.com/janix-loves-to-help
