Medicare will offer those not getting Social Security income the option of paying directly, and then will automatically deduct when the Social Security income starts. The consumer could make other arrangements such as quarterly payments in advance or automatic deductions from a bank account.
Older Americans must satisfy the requirements of the Affordable Care Act by getting and keeping qualified health insurance coverage. Medicare Part A and Medicare Advantage meet the requirements of the law, and consumers that get either of these Medicare programs will avoid the tax and penalty. Medicare Part A does not have a premium for most users, but Medicare Part B does. Medicare Advantage plans require premiums.
Original Medicare or Medicare Advantage
Medicare users must decide between Original Medicare and Medicare Advantage for health insurance coverage. Original Medicare consists of Medicare Part A Hospital Insurance and Medicare Part B Medical Insurance. Medicare will deduct the premium for Part B from Social Security income.
Medicare Advantage is a set of private plans from insurance companies. Medicare pays the companies an agreed fee for each entrant. Medicare deducts the premium from Social Security.
If No Premium then no Deduction
Persons signing for Medicare Part A but not for social security retirement income will have the option of paying the premiums directly to Medicare. Initial coverage would begin after the initial payments. The government asks for quarterly payments when using direct payment.
Medicare Part D
The Prescription Drug benefit of Medicare Part D requires a monthly premium payment. Subscribers pay the monthly premium to Medicare. Subscribers must choose to have automatic deductions from Social Security. They can arrange this by contacting the insurance provider.
Social Security will pay for three months after notice of the deduction at one time and then pay monthly after that. There will be a three-month delay in payment to accomplish this arrangement.
Automatic Deduction for Part B
Social Security will not deduct from persons who choose Medicare Part A but choose not to start their social security income. There is a no-premium option for Part A alone. Some people must buy Part A, and for these applicants, Social Security could deduct for Part A and Part B.
Comparison shopping is a very useful tool for assessing whether to use Original Medicare or Medicare Advantage. Advantage Plans are private with many added benefits and variety of new costs.
The Five Ways to Pay for Medicare
There are several ways to pay for Medicare premiums. They accommodate the preferences and user situations by offering several modes in addition to online bill pay.
Automatic deductions from Social Security
Automatic payment from a bank account’s online bill pay service
Medicare Easy Pay is a free service from Medicare that deducts the payment from the member’s bank account on the agreed date of the month. Currently, it is the 20th of each month
The Medicare Payment coupon is the paper and mail method for making Payments. The pre-addressed coupon and mailer direct the check to the Medicare Premium Collection Center in St. Louis
Credit or Debit Card and mail will meet the requirements. Users can fill in the coupon with card information and mail it to the Medicare Collection Center.
Handling Missed Payments
Medicare has an ordered procedure for missed payments. They issue a first notice then a second notice. If the insured does not pay after the second notice, then the government issues a notice of delinquency and a shutdown date for coverage. The below-listed items describe the business process for missed payments.
When advising the client, the letter states: this is not a bill
First Notice is the letter to advise of payment not received when due
Second Notice is the letter to advise a payment that is two months past due
Delinquent Notice is the final step before terminating Medicare coverage. Users must pay this bill by the 25th day of the notice month or lose coverage.
The Costs of Medicare Premiums
Medicare Part B premiums average about $104.00 to $140.00 per month. Those with higher incomes will have to pay more. Those with higher incomes will get a notice from Medicare of higher Part B premium payments and payments due. These IRMAA adjustments follow declared income on the latest tax returns.
The Open Enrollment Period for Medicare runs from October 15 through the following December 7. Open season for calendar year runs from October 15, 2016, through December 7. In open enrollment period, any Medicare member can make changes to their coverage.
Users can switch from Medicare to Medicare Advantage, add Prescription Drug benefits from Part D, and change from one Medicare Advantage plan to another.
What is Medicare?
Medicare is the federal government program to provide hospitalization, medical care and prescription drug coverage to older Americans. It is comprehensive medical care including home care, hospice, and special needs populations like those with HIV. Medicare consists of the below-listed major programs for older Americans citizens and legal residents.
Medicare Part A is hospitalization insurance. It covers costs of hospital stays, and medically necessary treatments and equipment.
Medicare Part B is medical insurance that covers the costs of doctor’s care and and routine medical care.
Medicare Advantage is comprehensive health coverage wit prescription benefit options.
Medicare Part D the Prescription Drug Benefit.
Once begun, the Medicare Supplement must continue under the terms and price structure agreed in the beginning, such as attained or issue-age pricing. The company can discontinue the policy if the customer does not pay the premiums.
Payment and premiums depend on terms of the agreement such as whether the seller sets the price by the issue age or the actual age after the first year.
Medicare Supplement Premiums
Customers must pay Medigap premiums directly to the private insurance company. As noted above, non-payment is a valid condition for canceling the policy. Policyholders must be certain to make timely payment if they wish to keep the policy.
Timely payment is particularly important after one experiences a change in health status that might prevent the company from accepting the application.
Deductions Guarantee Payment and Coverage
Social Security Administration offers Medicare deduction as a service to retirees. Medicare can Social Security income is vital to many older Americans. It can be a source of security for healthcare, too. Social Security will deduct Part A and Part B premiums from Social Security payments.
Easy Pay is a free service to help make payments easy and regular. When selected, they will also deduct premiums for Part D prescription Drugs and Part C Medicare Advantage.
Comparison shopping is a great way to select plans in Part C, Medicare Advantage. One can compare items far beyond premiums to get a true picture of costs and benefits.
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