Understanding Medicare: When to File and What to Know

The Basics of Medicare

Medicare is a federal health insurance program for individuals age 65 and older. It’s designed to help cover hospital care, doctor visits, and prescription medications — but it’s not just one single plan. Medicare is made up of multiple “parts,” each with a different purpose and cost.

• Part A: Hospital coverage (usually free for most people)

• Part B: Doctor visits, outpatient care, and other medical services (monthly premium applies)

• Part D: Prescription drug coverage (optional; should be reviewed annually)

• Medigap: Supplemental coverage that helps pay for costs not covered by Parts A and B

Some individuals choose Medicare Advantage (Part C) — a private plan that combines Parts A and B (and sometimes D).

When Should You File for Medicare?

Medicare eligibility begins at age 65, but you can start the process three months before your 65th birthday. While it’s possible to delay enrollment, doing so can trigger costly lifetime penalties unless you’re still covered under an employer-sponsored plan.

Review your current coverage carefully and confirm whether Medicare should become your primary insurance.

Why Timing Matters

Missing your initial enrollment window can lead to higher monthly premiums that last for life. Starting early helps ensure you have the right coverage in place and that your health benefits align with your retirement planning timeline.

The Role of Tax Planning

Your Medicare decisions may influence your tax situation in retirement, especially when it comes to Social Security withholdings or income-related monthly premiums. At Imperity Tax Planning, we help you integrate these choices into a broader tax strategy, so you can retire with confidence and clarity.

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