If you are new to Medicare knowing when to enroll in a Medicare Advantage plan is half the battle

Becoming eligible for Medicare means making some new choices. One choice is whether or not you should join a Medicare Advantage plan.

Joining a Medicare Advantage plan is a popular choice because plans typically have a lower monthly premium than a Medicare supplement, often include Part D coverage and extra benefits that are not part of original Medicare.

If you are new to Medicare and would like to enroll in a Medicare Advantage plan you must do so during the allotted time frame. This article will address time frames for people turning 65 as well as for people receiving Medicare due to a disability.

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Becoming Medicare eligible at 65

When you first become eligible for Medicare you have a 7 month window in which to enroll in a Medicare Advantage plan. You can join in the first 3 months prior to the month you turn 65, the month your turn 65 and the 3 months after the month you turn 65.

If you would like to have your Medicare Advantage plan in place when your Medicare eligibility begins you should submit your application prior to the month you turn 65.

The effective date for a Medicare Advantage plan will be the 1st day of your birth month. If you wait until the month you were born or the 3 months after the month you were born, your plan will become effective the 1st day of the following month.

Becoming Medicare Eligible due to a disability

Becoming eligible for Medicare due to a disability does not require that you wait until you turn 65. You can join a plan during the 7 month period which begins 3 months prior to your 25th month of disability, the 25th month and 3 months after your 25th month of disability.

Disability is defined by the fact that you are receiving disability benefits. Being unable to work and receiving disability benefits from a private insurance policy does not qualify towards the 25 month period.

If you are enrolled in a Medicare Advantage plan due to a disability and later turn 65, you will be entitled to a Special Enrollment Period when you can switch or drop a Medicare Advantage plan.

Knowing when you can enroll in a plan is half the battle. Your next step will be to research available plans to determine which one is right for you.

To learn more about Medicare Advantage plans enter your email address in the web form at the top right of this page to receive a Free Mini-Course on Medicare Advantage.

What are the options for those who qualify for Medicare due to a disability?

Most people become eligible for Medicare when they turn 65 years old, but an increasingly large number of people become eligible for Medicare due to a disability. The Medicare disability benefit is activated after someone qualifies for social security benefits due to disability and has completed a two year waiting period from the date of being awarded Social Security disability status.

Unless disability is due to an event that resulted in a large legal settlement, many people who qualify for Medicare disability find themselves without the ability to work and may be in poor financial shape. Often when one becomes disabled and is unable to work, they may draw down their savings while they are engaged in the long process of  qualifying for disability benefits. The situation is often compounded by losing health coverage from a former employer or the inability to pay premiums for individual health insurance.

Those with Medicare disability benefits may have an option to purchase a Medicare supplement and stand alone Part D drug coverage. Most Medicare supplement policies are individually underwritten, so taking advantage of the open enrollment period will be very important. Insurance companies can set rates, and rates for those under 65 with Medicare are often higher that rates for those 65 or older. Just as rates are higher for an 80 year old than a 65 year old due to greater insurance risk, companies will often charge those who are disabled and under 65 a higher premium due to higher risk. Because of the cost for a Medicare supplement, many people with Medicare disability benefits will not be able to afford this option.

Medicare Advantage plans are a good fit for those with Medicare disability benefits

As long as you have Parts A and B of Medicare and live in the Advantage plans’ service area, you can enroll in an Advantage plan. When someone becomes eligible for Parts A and B, no matter at what age, they will have a special enrollment period and will not have to wait for the annual enrollment period that runs from October 15th through December 7st of each year. Note: this is a new time frame beginning for plans with a January 2012 effective date.

An Advantage Plan is a good fit for those people with Medicare disability benefits who are on a limited income. Checking the available plans on the official Medicare website is a good place to start. Those eligible for Medicare due to a disability may qualify for a special needs plan or a plan for those that are dual eligible, having both Medicare and Medicaid.

If beneficiaries are on a limited budget, they may be able to enroll in a plan that does not require a monthly premium. A good example would be  AARP Medicare Complete Choice Plan 2 (premiums may vary). This is one of many plan choices, but for those on a limited income it is a good option to look at.

Whether you are interested in a Medicare Supplement or a Medicare Advantage plan, if you qualify for Medicare disability benefits, you need to take advantage of your special enrollment period and make a choice.