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- Delaying Medicare
Yes or No?
When considering Medicare, you have two options: enroll in a plan with a private insurance company or enroll in a public program. There are pros and cons to each choice. We will explore the benefits of delaying Medicare enrollment and how it can be beneficial for your health care needs.
The first thing to consider is whether you want to delay Medicare. The decision largely depends on your health and retirement status. If you are in good health, have a solid retirement plan, and are comfortable with the out-of-pocket expenses associated with private insurance, then delaying enrollment may be a wise choice for you.
When you delay Medicare, you can continue to receive coverage through your employer or spouse’s plan. This option is especially beneficial if you don’t have any major health concerns and are looking for ways to save money on premiums. Keep in mind that when you eventually enroll in Medicare, Part A will be free but Parts B and D will likely require monthly premiums.
There are also some tax benefits associated with delaying Medicare. For example, if you delay enrollment until after your 70th birthday and have limited income outside of Social Security benefits, then it is possible to be exempt from the premium surcharge that was implemented in 2006 for those between 65 – 69 years old with a modified adjusted gross income greater than $85,000. However, if your spouse or children were previously covered by a private health insurance plan under age 65 but are not eligible to enroll in their own Medicare plan once you turn 65 (due to ObamaCare regulations), they can still receive coverage through yours as long as they continue living at home. If these circumstances apply to you and delaying enrollment would benefit your family financially, then it may make sense to wait before signing up for Medicare.