By Lindsay Engle
Medicare and Social Security Disability Insurance are not the easiest to understand. Even the application process can be beyond confusing for many people. But Medicare and Disability don’t have to be confusing.
Below are six things you should know when signing up for Medicare while on Disability.
Can I Get a Medigap Plan if I’m on Disability?
Legally, insurance companies don’t have to sell Medigap plans to those who are under 65 years old. Some states require insurance companies to sell Medigap policies. Rules vary by state.
If you buy a plan before 65 because you’re on Disability, you may end up spending a lot more money. You’ll want to check into your state’s Medigap regulations before making big decisions. You may find this can reduce your monthly costs drastically.
How Can Medicare and Social Security Disability Insurance Work Together?
When you receive SSDI and want to enroll in Medicare, you’ll learn very quickly that it can be a waiting game. You’ll have to wait two years to start receiving Medicare, along with your SSDI payments.
Let’s say you recently became disabled. You receive your approval from SSDI and an entitlement date of January 2020. You won’t be able to receive your Medicare benefits until January 2022.
Once your Medicare begins, you may find that you’re unsure how it will coincide with SSDI. If you sign up for Part B, Social Security will deduct Medicare premiums from your SSDI benefits. In other words, you won’t need to worry about remembering to pay an extra bill each month.
Part D covers your prescription drug costs. Your drug coverage works together with your disability benefits. Like Medicare Part B, you’ll need to pay a premium for your Part D benefits. You can sign up for a drug plan three months before the 25th month of receiving your Social Security benefits.
Medicare Advantage policies offer the same coverage as Original Medicare. But Advantage plans also carry extra benefits. You’ll be responsible for paying your premiums but can count on comprehensive coverage. Medicare Advantage will coincide with SSDI, just as traditional Medicare does.
If you need help with paying for premiums, there are programs in place to help those with lower or fixed incomes. Medicare premium help is available with the Medicare Savings Programs. The Extra Help program helps with Part D premiums, copays, deductibles, and coinsurance.
How Do I Sign up for Medicare?
You may be wondering how you can start the Medicare enrollment process. The good news is that you won’t have to sign up for Medicare on your own. You’ll receive a Medicare I.D. card in your mail several months before your 25th month of Disability.
Maybe you’ve decided that you’d like to enroll in a Medicare supplement plan. If so, you need to be aware of the enrollment opportunities you have. During this time, you can join any Medigap plan that’s available in your state.
You’ll have two different Open Enrollment Periods for Medigap if you enroll before 65:
- At the start of your Part B benefits
- When you turn 65
By choosing to sign up for Medigap before 65, you might find that your premiums are pretty expensive. Advantage policies tend to have lower premiums than Medigap if purchasing before 65.
Frequently Asked Questions
Can my 60-year-old spouse join Medicare since I receive benefits?
Your spouse cannot join Medicare just because you qualify for Medicare benefits. Your spouse will need to either age into Medicare or have a qualifying disability.
How long can I stay on Medicare if I decide to start working?
Recipients of SSDI can’t start working full time while receiving their disability benefits. To keep your disability benefits, you can’t make more than $1,260 each month in 2020.
Since SSDI has employment rules, surely Medicare does as well. As long as your Disability continues to meet Medicare’s eligibility rules, you can keep your Medicare for 8.5 years after going back to work. But your Disability needs to meet Medicare’s eligibility rules still.
Don’t Be Afraid to Ask Questions
Medicare and Disability can be hard to understand. Especially when you’re brand new to the programs. Try not to let yourself fall into a state of confusion.
Disability and Medicare are in place to help you, not hurt you.
Lindsay Engle is the Medicare expert for MedicareFAQ. She has been working in the Medicare industry since 2017. She is featured in many publications, and writes regularly for other expert columns. She has a passion for sharing her expertise on Medicare to beneficiaries so they can be better prepared for healthcare costs after retirement. You can find her on YouTube where she has a featured channel for Medicare beneficiaries to become educated on all their options.