Napa's Health Insurance Guys: Should he sign up for Medicare now, or later?

Dear Kyle, Tom and Alan: I'm turning 65 on Oct. 29 (yup, next month!). Got my Medicare card with A and B and a start date of Oct. 1.

So, they tell me I can sign up for medical and drugs and everything starts Oct. 1…great!

However, some people are telling me that the rates and plans can all be different beginning Jan. 1, 2024, so why not wait until Oct. 15 to see what the new rates are for next year?

But wait! Wouldn't it be dangerous to only have Medicare for a month or two, or three? What do you guys think?

Jerry

Al: Since I've been on Medicare longest, I'll go first. Jerry, you'll be getting a bill pretty soon to pay for your Medicare Part B. If you're married and the income on your joint tax return was less than $194,000, you will pay $164.90 each month for Part B (no charge for Part A).

I usually tell customers, "Here you are at age 65 and only paying $164.90 for 80% medical coverage! Of course, the other 20% has no cap, so you might want to get something to fill in the gap."

Kyle: Yes, and "Medigap" is what we often recommend to those who can afford it. Jerry, you have six months after your birth month to sign up for a Medicare Supplement plan…and they have to take you. Medicare Parts A & B have to be in place so you want to make sure you pay that Part B premium without fail. You will also want to sign up for a drug plan.

Tom: Also called Medicare Part D, your drug plan is one more expense added to B and the supplement. Another little twist to Part D is that you only need Part A OR Part B to qualify. And, Jerry, the open enrollment for D is three months before your birthday, the month of, and three months after. Clear as a bell?

Al: Just in case you don't want to be bothered with all the above, you can also consider a Medicare Advantage Plan, Part C. Similar to the drug plans, your guaranteed open enrollment is three months before, the month of, and three months after your birth month. Advantage plans usually have drug coverage included, but, again, you must have A and B in place.

Kyle: Those are your choices, and the reason it can be particularly confusing is that every year between Oct. 15 and Dec. 7 is the Annual Enrollment Period (AEP) during which you can sign up for or change Advantage plans and/or drug plans. So if you sign up for a supplement and drug plan right now, the drug plan could be very different on Oct. 15 than the one you signed up for this month.

Whatever you sign up for Oct.15 during the AEP doesn't actually start until Jan. 1.

Al: The real kicker is that we can't discuss the 2024 drug and advantage until Oct. 1. Yikes.