• • Does every senior citizen qualify for Medicare?

• • Most seniors qualify, but it is not a given. You earn retirement credits when you are working and paying taxes. The maximum annual accrual is four credits, and you will be eligible after you have accumulated a minimum of 40 credits.

• • What is the Medicare eligibility age?

• • The eligibility age is 65 at the present time, but a change is always possible. Some lawmakers would like to reduce the eligibility age, and there are others that would rather increase it.

• • Can you qualify for Medicare on your spouse’s work record?

• • Yes, even if you have not accumulated 40 credits on your own, you can qualify if you are married and your spouse is eligible for Medicare coverage.

• • How is the program structured?

• • There are four parts to the Medicare program. Part A is the hospitalization piece, and Part B is the portion that covers treatments that are provided by doctors and other medical professionals. Part C gives you the ability to purchase a Medicare Advantage plan from a private insurer. These plans typically bundle the different component forms of coverage, and they fill in some of the gaps. Part D is the prescription drug portion of the Medicare program.

• • What are the out-of-pocket expenses?

• • There is no monthly premium for Part A, but there is a deductible. This will cover the first 60 days, but there is a considerable co-insurance requirement for stays that exceed 60 days. You are required to pay a monthly premium for Part B which is automatically deducted from your Social Security direct deposit if you are drawing your benefit, and there is a deductible. Since Part C and Part D are offered by private companies, there are a wide range of options that have different out-of-pocket costs depending on the coverage levels.

• • So Part A would pay for a stay in a nursing home?

• • Absolutely not, Medicare does not cover the long-term custodial care that nursing homes provide.

• • Is there any government program that will help with these costs?

• • Yes, Medicaid covers custodial care, but there is a low asset limit because it is a need-based program. You could convey assets into an irrevocable trust to prepare for future eligibility, and we can help you implement a plan.

• • Is the Social Security eligibility age 62?

• • The answer is yes and no. You can choose to receive a benefit when you are 62, but it would be less than the benefit that you would be eligible for when you reach the full eligibility age. The reduction would be between 25 and 30 percent depending on your birth year. For a full benefit, the eligibility age is 66 if you were born between 1943 and 1954. It then graduates by two months per year until it reaches the age of 67 for people that were born in 1960 or later. There is another option if you want to maximize your benefit. You can choose to delay the submission of your application for Social Security until you are as old as 70. If you do this, your benefit will be increased by eight percent for every year that you delay.

• • How is the benefit calculated?

• • The Social Security Administration uses your 35 highest earning years to calculate your benefit.

• • Do you continue to receive your deceased spouse’s benefit?

• • You can only receive one benefit. However, if your benefit is less than your spouse’s benefit, your payout would be increased to match your spouse’s benefit amount after their passing.

 

Schedule a Consultation Today!

We are here to help if you would like to develop a plan for aging that will preserve your legacy for the benefit of your loved ones. You can schedule a consultation appointment if you give us a call at 585-374-5210.

There is also a contact form on this website you can use to send us a message, and if you reach out electronically, you can expect to receive a prompt response.