The #1 Reason Why You Should Enroll in Medicare Part A
(Even If You’re Still Working)
Whether or not you should sign up for Part B while still actively employed is a little more questionable. I mean, why pay that $134 a month premium if you’re employer plan is doing a fine job at a cheaper price? (Call our office if you would like advice on whether or not to take Part B.) But Part A is not like that. There are basically no downsides to enrolling once you’ve turned 65. Why, you ask?
Because It’s Free!
Of course, that is neglecting the fact that you’ve paid into social security for about 40 years and—therefore—have earned it. But—wherever you stand on the proverbial “free lunch” debate— this does not change the fact that Medicare Part A has no associated premium. If you are approaching 65 and have paid into Social Security for at least 10 years, there is no reason to delay.
There is only one reason why you would want to opt out of Part A…
Health Savings Accounts
If you have an HSA and wish to continue contributing to it, you may want to delay Part A. Of course, you can still have an HSA. And you can still use it to pay medical expenses. But you cannot put any money into it after you enroll in Medicare. There are some people who do, of course—whether unknowingly or purposefully—but this is not a wise choice. If the IRS audits you, you will be subject to a stiff penalty. According to IRS publication 969, the penalty is 6% of your contribution and its interest until you remove the funds from your HSA.
But other than that, you should definitely enroll in Part A if you are approaching 65. All those years of the government dipping into your earnings have paid off—if only in a small way. There may not be such a thing as a “free lunch”, but there is such a thing as taking advantage of what you’ve so rightfully earned.
We know. Medicare is confusing. But we can help make sense of it all by mapping out a plan that fits your needs and your budget. Just contact Seniormark at 937-492-8800 or click here to schedule a free consultation!