Medicare at Age 62: Fact vs. Fiction

Can You Get Medicare at Age 62 If You Retire?

As a general rule, you can’t get Medicare at age 62 if you retire early. However, there are three situations that may allow you to have Medicare before the age of 65. The most common situation is if you qualify for Social Security Disability Insurance.

In this article, we will do a deep dive into how you can sign up for Medicare at age 62 or younger. And, we’ll walk through the steps to sign up for Medicare.

Can I Get Medicare at Age 62?

Individuals under the age of 65 with Social Security Disability Insurance (SSDI) benefits get their Medicare benefits 24 months after their first SSDI payment.

The 24-month waiting period is waived for people who have End-Stage Renal Disease (ESRD), or amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease.

The rest of us wait until we turn age 65. Our Social Security retirement age does not change our Medicare eligibility age.

Can I Get Medicare Advantage at Age 62?

Even though Medicare Advantage plansMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). are sold by private health insurance companies, they have the same enrollment rules as Original MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage.. To be eligible for Medicare Advantage, you must be enrolled in both Medicare Part AMedicare Part A is hospital coverage for Medicare beneficiaries. It covers inpatient care in hospitals and skilled nursing facilities. It also covers limited home healthcare services and hospice care. and Part B. Otherwise, a private insurer will not allow you to join their plan.

Can I Be Turned Down for Medicare Advantage If I’m on SSDI?

In general, Medicare Advantage plans cannot deny coverage due to a pre-existing conditionA pre-existing condition is any health problem that occurred before enrolling in a health plan. The Affordable Care Act law made it illegal for health plans to or charge more due to a pre-existing condition..... However, until recently, Medicare did not require health insurance companies to accept people with permanent kidney failure. That has changed.

As of 2021, individuals with end-stage kidney disease can enroll in a Medicare Advantage plan. Plans must cover the same services as Original Medicare but they may have restrictions and set their own out-of-pocket costsOut-of-Pocket Costs for Medicare are the remaining costs that are not covered by the beneficiary's health insurance plan. These costs can come from the beneficiary's monthly premiums, deductibles, coinsurance, and copayments.. However, cost-sharing for outpatient dialysis and immunosuppressant drugs cannot be higher than it is with Original Medicare.

Is Medicare Changing to 62?

Not likely.

If passed, the Improving Medicare Coverage Act would temporarily expand Medicare to an estimated 23 million people. However, it never moved forward in the 117th Congress. It does not seem likely that the proposed bill will ever make it to the President’s desk.

What is the Earliest Age You Can Have Medicare?

Most folks get Medicare at age 65. However, adults between the ages of 18 and 64 also qualify based on their Social Security disability benefits.

What Happens if I Retire Early? How Do I Get Health Insurance?

If you choose to take your Social Security benefits early, you have a few potential options for health insurance.

• If your employer offers it, you can get retiree health insurance. Unfortunately, most employers no longer offer retiree health benefits.
• You can keep your employer’s coverage through COBRA. Federal law requires employers with 20 or more employees to continue coverage after an employee leaves their job.
• You can get health insurance through your spouse’s health plan if the plan offers dependent coverage. An employer’s health insurance may require you to wait until the annual enrollment periodThe Annual Enrollment Period is when Medicare beneficiaries can join, drop or change Medicare Advantage and Medicare Part D prescription drug plans. AEP begins on 15 October and ends on 7 December. to get health coverage.
• You can buy a health plan through Healthcare.gov (Affordable Care Act coverage). You can get a Special Enrollment PeriodSpecial Enrollment Periods (SEPs) allow beneficiaries to change their Medicare Advantage and Part D plans due to a special circumstance. Common reasons for a SEP include moving, losing employer coverage, and Medicaid eligibility, to name... (SEP) to buy a plan if you had coverage through your employer and lost it when you left your job.
• If you qualify, you can apply for Medicaid benefits.

Can I Get Medicaid Benefits If I Retire at Age 62?

You qualify for Medicaid based on your income, not your age. They go by the current Federal Poverty Level (FPL) guidelines.

If you are retiring early, and Social Security will be your only source of income, the maximum benefit you can get in 2023 is $2,572, which is above the FPL for an individual. Most retirees don’t qualify for benefits anywhere near this amount.

This year the FPL for an individual is $13,590 (a both higher in Alaska and Hawaii). If your retirement income is at or below this amount, you may qualify for full Medicaid benefits.

Is Retiring at 62 a Good Idea?

Only you can make that decision.

If you don’t believe you will live a long life, it could be a very good idea. It all comes down to simple math.

If the most you can get at age 62 is $2,572, and you live to age 82, Social Security will pay you a total of $617,280 (not considering cost-of-living increases).

However, if you retire at age 70 in 2023, your maximum benefit would be $4,555 per month. In this case, by age 82 you will have received $655,920. If you live to reach 90 or older, your Social Security income will be over 1 million dollars (at the maximum benefit).

How to Sign Up for Medicare

For most individuals, Medicare enrollment is not automatic. However, if you have had Social Security benefits for at least 4 months before you qualify for Medicare, you will be automatically enrolled.

If you are not receiving Social Security, you can sign up for Medicare during your seven-month Initial Enrollment PeriodThe Initial Enrollment Period is a seven-month period when new beneficiaries can enroll in Medicare without a penalty. Most people enroll in Medicare at age 65. (IEP). Your IEP begins three months before the month you turn 65 and ends three months after your birthday month.

Coverage from Medicare begins no sooner than the month you turn 65. If your birthday is on the first day of the month, your coverage begins on the first of the previous month.

You sign up for Medicare through Social Security. You can enroll online at https://www.ssa.gov/medicare/sign-up or by calling 1 800-772-1213.

Do I Have to Sign Up for Medicare if I Have Medicaid?

If you retire early, and you went on Medicaid, your Medicare coverage will start automatically when you turn age 65. In most cases, this will not impact your Medicaid benefits.

Medicare and Medicaid work together. When a beneficiaryA person who has health care insurance through the Medicare or Medicaid programs. has both (dual eligible), Medicare is the primary payer and Medicaid is secondary.

If you have Medicaid and you are not automatically enrolled, be aware that Medicare has late enrollment penalties. They can assess a late enrollment penalty on Part A, Part B, and Part D drug plans.

Can Immigrants Enroll in Medicare?

Yes.

If you are a legal resident of the United States, you are eligible for Medicare. You can get premium-free Medicare Part A if you or your spouse worked at least 40 quarters (10 years) and paid payroll taxes.

All other requirements apply. All Medicare insurance options are available.

Do I Have to Pay for Medicare When I Retire?

Yes. Medicare has a monthly cost and out-of-pocket costs when you use healthcare services, just like regular health insurance.

If you paid Medicare taxes for a minimum of 10 years, you get premium-free Part A coverage. If not, you will have a monthly premiumA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums.  based on the number of years you paid Medicare taxes.

Medicare Part BMedicare Part B is medical coverage for people with Original Medicare benefits. It covers doctor visits, preventative care, tests, durable medical equipment, and supplies. Medicare Part B pays 80 percent of most medically necessary healthcare services. also has a monthly premium. This year, most people pay per month for Part B. High-income earners pay an additional IRMAAIncome Related Month Adjustment Amount (IRMAA) is a Medicare Part B and Medicare Part D premium surcharge that is levied on high-income earners. The surcharge amount is based on a beneficiary's adjusted gross income. surcharge. If you took early retirement, Medicare automatically takes the money from your Social Security payments.

Medicare also has deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share., coinsuranceCoinsurance is a percentage of the total you are required to pay for a medical service. , and copaymentA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service. costs you pay when you use certain healthcare services. For instance, the Part A hospital inpatient deductible is $1,600 per benefit periodA benefit period is a method used in Original Medicare to measure a beneficiaries use of hospital and skilled nursing facility (SNF) services. With each new benefit period, the beneficiary is charged a new benefit....

The Part B medical care deductible is $226 per year. You pay this amount before Medicare begins covering any of your doctor visits and other outpatient costs.

If you need drug coverage, you can enroll in a Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... plan. These plans are also available in Medicare Part CMedicare Part C is Medicare's private health plan option. Also known as Medicare Advantage, Medicare Part C plans are a type of Medicare health plan offered by companies that contract with Medicare to provide all... health plans (Medicare Advantage).

Can I Get Medicare Supplement Insurance?

As you can see from some of the costs listed above, Medicare coverage is not cheap. That’s what Medicare supplemental insurance is for. It helps cover some of the cost gaps in Medicare.

If you are turning age 65 and enroll in both Medicare Part A (hospital insurance) and Medicare Part B (medical insurance), you have a guaranteed right to buy Medicare Supplement Insurance (Medigap).

If you are under the age of 65 and qualify for Medicare, federal law does not guarantee you can purchase a Medigap plan. However, laws in your state may give you this right.