Don’t be surprised if you owe thousands in taxes…
Covered California has been a saving grace for thousands of people. During the 2016 open enrollment enrollment period 439,000 NEW enrollees signed up for private plans, increasing total enrollment to about 1 1/2 million people. Premium assistance is available for people who earn between between 138% & 400% of the Federal Poverty Level (FPL). The majority of these people are receiving premium assistance or Advanced Premium Tax credits (APTC) to lower their health care premiums. Please keep in mind that if you’re eligible for Zero Premium Medicare Part A than you will no longer be entitled to Premium assistance through Covered CA. Most people have earned the right to free Medicare Part A, covering their hospital, by virtue of their work record or their spouses. If you fail to terminate your individual health care coverage and receive premium assistance after your Medicare eligibility this can lead to a shock at tax time! Medicare Part B covers your Medical and will cost $121.80 per month for the vast majority of people. Low income people may qualify for free Part B Medical coverage and higher income people will be charged more, known as a IRMAA or Income Related Monthly Adjustment Amount. If you’re currently receiving Social Security benefits or Railroad Retirement benefits you’ll automatically be enrolled in Medicare. The initial enrollment period package will be mailed:
- three months before age 65
- 25th month of disability benefits
If your enrollment isn’t automatic, you can:
- Visit your local Social Security office
- call 1-800-772-1213
- visit www.socialsecurity.gov
- www.medicare.gov
Your initial enrollment period (IEP) lasts seven months
- Begins three months before your 65th birthday
- Includes the month you turn 65
- Ends thee months after you turn 65
There are other times you may enroll but you may have to pay a penalty if you delay.
Covered California does not sell Medicare Advantage plans (such as Medicare HMOs and PPOs), Medicare Part D prescription drug plans, or Medigap policies. CaMedicare on the other hand can help you with your Medicare Enrollment process, including choosing the most appropriate Supplement and Prescription Drug Plan (PDP or a Medicare Advantage Plan also known as Part C. Part C health plan options are approved by Medicare and are another way to get get Medicare coverage:
- Still part of the Medicare program
- Run by private insurers/companies
- Medicare pays plan an amount for each member’s care
- Most likely will have to use network doctors or hospitals
- Plans offer more coverage than Original Medicare
As a Certified Insurance Agency (CIA) for the Exchange CA Medicare is a fee free broker that can help you with eligibility enrollment and premium assistance determination. Open enrollment is November 1st through February 31st but depending on your situation you might be eligible for a Special Enrollment Period know as a SEP. Mistakes in your healthcare choices can lead to waiting a long time before coverage, failure to get coverage and penalties. Whether your in your twenties or about to turn 65 and thinking about Medicare it’s more important now than ever to speak with someone who specializes in healthcare and can provide you with a seamless solution.