Turning 65 is an exciting milestone, and it also marks an important time for your healthcare coverage. You have a seven-month window—starting three months before your birthday and ending three months after—to enroll in Medicare. Missing this period could lead to penalties or gaps in coverage. At Sharp Family Insurance, we’re here to help those in our Hot Springs, Hot Springs Village and surrounding communities navigate the process and ensure the best decisions are being made for your healthcare needs.
Do You Have Health Insurance Through Your Employer?
If you’re still receiving health insurance from your employer and your company has more than 20 employees, you may not need to enroll in Medicare right away. However, many Arkansas residents choose to sign up for Part A anyway, since they’ve already paid Medicare taxes while working and typically won’t have a monthly premium for this coverage (also known as “hospital insurance”).
While most people don’t pay for Part A, Medicare Part B does come with a monthly premium. Part B—also called “Medical Insurance”—covers doctor visits, outpatient care, medical equipment, and home health services. Since you will have some out-of-pocket costs, it’s important to explore your options to determine the most cost-effective choice.
What If You Have a Health Savings Account (HSA)?
If you’re currently contributing to an HSA, you may want to delay enrolling in Medicare. Why? Because once you enroll in Medicare Part A or Part B, you can no longer make tax-free contributions to your HSA. This is important if you want to continue building up your HSA funds for future medical expenses.
Here are a few key points to consider:
- HSA contributions must stop the month your Medicare coverage begins. This means if you enroll in Medicare at 65, you can no longer contribute to your HSA.
- If your employer offers an HSA-eligible high-deductible health plan (HDHP), staying on that plan might be more cost-effective for now.
- Once you enroll in Medicare, you can still use the money in your HSA to pay for qualified medical expenses, including Medicare premiums, deductibles, copayments, and coinsurance. However, you won’t be able to contribute additional funds.
If you decide to delay Medicare enrollment because of your HSA, make sure you plan accordingly. Once you enroll in Medicare, your Part A coverage will be backdated up to six months (but no earlier than your 65th birthday). This means you should stop HSA contributions at least six months before enrolling to avoid tax penalties.
Medicare Checklist for Those Turning 65
If you’re turning 65 this year, it’s important to plan ahead so you don’t miss key deadlines or end up with gaps in your coverage. With so many options—Original Medicare, Medicare Advantage, Part D, and Medigap—it can feel overwhelming. But don’t worry! We’ve put together a simple checklist to help you stay on track and make the best choices for your healthcare needs.
- Learn About Medicare – Understand what Medicare Part A, Part B, Part C (Medicare Advantage), and Part D (Prescription Drug Coverage) cover.
- Check Your Enrollment Period – You have a 7-month Initial Enrollment Period (IEP) (3 months before, the month of, and 3 months after your 65th birthday).
- Decide if You Need to Enroll in Medicare – If you have employer-provided health coverage, check whether you need to sign up for Medicare now or can delay without penalties.
- Consider Your HSA – If you have a Health Savings Account (HSA), determine whether delaying Medicare enrollment is the best choice for you.
- Compare Medicare Plan Options – Decide whether Original Medicare (Part A & B) or Medicare Advantage (Part C) is best for your healthcare needs.
- Review Prescription Drug Coverage (Part D) – Even if you don’t take many medications now, enrolling in a Part D plan can help avoid future penalties.
Check for Medicare Supplement (Medigap) Plans – If you choose Original Medicare, you may want to consider a Medigap plan to help cover out-of-pocket costs. - Speak with a Local Medicare Agent – A trusted agent at Sharp Family Insurance in Hot Springs, AR, can help you understand your options and choose the best plan.
- Enroll in Medicare on Time – Sign up for Medicare through the Social Security Administration (SSA) to avoid late penalties and ensure continuous coverage.
Do you have a trusted local insurance agent?
Navigating Medicare can be overwhelming, but you don’t have to do it alone. Having a knowledgeable, local agent by your side can save you money and ensure you have the coverage that best fits your needs. Unlike national call centers, we understand the options available right here in Hot Springs and can guide you through the process.
At Sharp Insurance Agency, we specialize in helping our neighbors in Hot Springs, Hot Springs Village and surrounding communities make the best Medicare choices. If you’re turning 65 and need experienced guidance, we’re here to help! Give us a call today, and let’s find the right plan for you.
Sharp Family Insurance
www.sharpfamilyins.com/contact/
(501) 547-9474
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