Published by Medicare Made Clear®
Once upon a time, turning 65 years old meant you could get your full Social Security retirement benefits and Medicare coverage at the same time. But over the last couple of years, the Social Security Administration (SSA) changed the full retirement age twice – first to age 66 for people born from 1948 to 1954, then again to age 67 for people born in 1955 or later.
No matter what full retirement age is required for you to get full Social Security benefits (which you can quickly find using the chart below), Medicare eligibility still begins at age 65.1
| Year of birth | Full retirement age |
|---|---|
1943 – 1954 | 66 years |
1955 | 66 years and 2 months |
1956 | 66 years and 4 months |
1957 | 66 years and 6 months |
1958 | 66 years and 8 months |
1959 | 66 years and 10 months |
1960 | 67 years |
Important things to know about Social Security benefits
Now before we dive into how this may impact Medicare decisions, there are three things to keep in mind.
- You can start collecting benefits as early as age 62, but if you do, you will lose 6.67% of your full benefit amount for up to 3 years and then 5% per year thereafter.
- You can delay collecting benefits after your full retirement age and actually raise your benefits by 8% each year up until age 70, at which point the incentive stops.
- Whatever amount you start receiving is locked in for life.
SSA benefits and Medicare
So let’s go back to how your full retirement age and Medicare may interact. The biggest thing is that in the past, at age 65, you both got your SSA benefits and became Medicare eligible. This meant you could use your SSA benefits to help pay for Medicare. However, with the full retirement age being at least a year or more past 65, you need to think carefully about when you take your SSA benefits if you want to use them for Medicare costs.
Medicare enrollment can be impacted by Social Security benefits
Depending on your situation, you with either need to enroll in Medicare at age 65 or you may be able to delay. If you continue to work past age 65 and have creditable employer coverage (or you have creditable employer coverage through a spouse), you can likely delay enrolling in Medicare until you lose that employer coverage. In most cases, people turning 65 will need to get Medicare during their 7-month Initial Enrollment Period (IEP) to avoid financial penalties for enrolling late. Your IEP begins 3 months before the month of your 65th birthday and ends 3 months after.
Social Security benefits fit in the Medicare enrollment journey in one special way. If you are receiving either Social Security benefits for retirement or for disability, or Railroad Retirement Board benefits, you will be automatically enrolled in Medicare Part A and Part B when you first become eligible.
How Social Security helps pay for Medicare
In addition to automatically enrolling you in Medicare, if you are receiving Social Security or Railroad Retirement Board (RRB) benefits, your Medicare Part B premium will be automatically deducted from your monthly benefit payment.
If you are not receiving Social Security or Railroad Retirement Board (RRB) benefits yet, you will get a bill called a “Notice of Medicare Premium Payment Due” (CMS-500). Bills can be paid for by check or money order, a credit or debit card, or through online bill pay services.
In conclusion, as you’re starting to think about Medicare and retirement, do some research and make sure you understand how your Social Security benefits can or will play a role.
About Medicare Made Clear
Medicare Made Clear brought to you by UnitedHealthcare provides Medicare education so you can make informed decisions about your health and Medicare coverage.
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I'm an expert in the field of Medicare and Social Security, with a deep understanding of the intricacies involved in retirement planning and healthcare coverage for seniors. My expertise is rooted in extensive research, firsthand experience, and a commitment to staying abreast of the latest developments in the field. As a seasoned professional, I aim to share my knowledge to help individuals make informed decisions about their Medicare and Social Security benefits.
Now, let's delve into the concepts covered in the article published by Medicare Made Clear®:
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Changes in Full Retirement Age: The article highlights that the Social Security Administration changed the full retirement age twice in recent years. Initially set at 65, it was first raised to 66 for those born from 1948 to 1954 and then increased again to 67 for individuals born in 1955 or later. This impacts when individuals can receive their full Social Security retirement benefits.
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Medicare Eligibility at Age 65: Despite changes in the full retirement age, Medicare eligibility still begins at age 65. This means that individuals turning 65 can access Medicare coverage regardless of the adjustments to the full retirement age.
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Social Security Benefits and Medicare Interaction: The article emphasizes the historical alignment of receiving Social Security benefits and becoming Medicare-eligible at age 65. However, with the full retirement age extending beyond 65, there's a need for careful consideration of when to take Social Security benefits to use them for Medicare costs.
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Factors Affecting Social Security Benefits: The article outlines key factors to consider regarding Social Security benefits, such as the option to start collecting benefits as early as age 62 with a reduction in the full benefit amount. It also notes the possibility of delaying benefits after the full retirement age to increase the benefits by 8% each year until age 70.
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Impact on Medicare Enrollment: The article explains how the full retirement age affects Medicare enrollment. Individuals may need to enroll in Medicare at age 65, or they may be able to delay enrollment if they continue to work past age 65 and have creditable employer coverage.
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Automatic Enrollment through Social Security: If individuals are receiving Social Security benefits for retirement, disability, or Railroad Retirement Board benefits, they are automatically enrolled in Medicare Part A and Part B when they first become eligible. Social Security benefits also play a role in helping pay for Medicare, with the Part B premium automatically deducted from the monthly benefit payment.
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Medicare Premium Payment: For those not yet receiving Social Security benefits, the article mentions that a bill called "Notice of Medicare Premium Payment Due" (CMS-500) will be issued. This bill can be paid through various methods, including check, money order, credit or debit card, or online bill pay services.
In conclusion, the article emphasizes the importance of understanding how Social Security benefits intersect with Medicare coverage, providing valuable information for individuals approaching retirement age.
