Every American employee have the Medicare tax deducted by their employer as required by the law. However, there are people who have no idea of how this Medicare tax is of importance. One thing that you need to understand however is that this form of tax helps to offer health coverage for the aged since it becomes effective in 1965. However, it remained true to its foundation which is to provide health insurance for the elderly and those with certain disabilities.
The basis of this cover is to ensure that once you retire or concluded to be physically unable to work have access to medical services. There is the need to know that one is needed to enroll for this program as it is not automatic. The other crucial thing to know is that you will need to make monthly premiums even after getting enrolled. Additionally, you will be penalized if you do not enroll within the given timeframe or follow the given rules.
It is crucial to know that when you have retired or be determined disabled, you first qualify for Medicare Part B or the medical coverage. The part A is the hospital coverage and is usually separate from the part B and has its own costs and coverage through the qualifications are all the same. The time frame that is given for enrollment purposes is usually 7 months. The first 3 months are usually before you turn 65 and the ending the others after you have turned 65. Failure to enroll in that timeframe usually attracts a penalty.
After the initial enrollment, usually, there is the annual Medicare Enrollment that begins in October and ends in December on specific dates. In this time, one gets a chance to choose the Medicare plan that they like. In such a time you will get to know if you need a separate plan D or A And D which you will learn about them.
Another important thing you need to know is that you can both have Medicaid and Medicare at the same time. There is a lot of Americans who have taken advantage of this special circumstance that is known as the dual enrollment. The other thing that you need to understand is that you can retire, get the Medicare coverage and still work so long as you make up to a given income.
If you happen to qualify for Medicare coverage, it is important to speak to a qualified representative to help you get a better understanding of the plan that suits you.