Many people don’t realize Medicare constantly changes on an annual basis. Due to this, those who receive Medicare benefits and those who provide healthcare services need to stay on top of the latest changes. Most of these changes are well publicized, but from time to time some information is not obtained. Due to this, it is important for all parties involved with Medicare to learn about facts they may not already know.
How Someone Qualifies for Medicare
Far too often individuals assume they automatically receive Medicare benefits when they hit a certain age. This, however, is not the case. In fact, every individual needs to qualify for Medicare before receiving it. For starters, a recipient must qualify for “40 credits” to be able to apply. This isn’t difficult, as it is the equivalent to a 10 year career. For those who have stayed at home to watch children or perform other household duties, if a spouse qualifies for Medicare, they do as well. If someone has not yet received the 40 credits, they can still take part in Medicare, although they will need to pay for some aspects of coverage (this can depend on the number of credits a person does currently hold).
Medicare Taxes Are Different from Social Security Taxes
For the longest time, both Medicare and Social Security were taxed at the same income rate. However, citizens pay an increase in their Social Security taxes. In other words, a worker would stop paying taxes for Medicare at the same income level as Social Security. Now, workers continue to pay Medicare taxes even after Social Security is no longer taken out of their income. This way, higher earning individuals who may opt to not use Medicare help pay for those who are unable to pay for their own health insurance.
There is a Penalty
Tens of millions of people use Medicare. However, many of the wealthiest individuals in the U.S. do not. In order to obtain more money from the wealthy, the Affordable Care Act penalizes those who qualify but do not participate in Medicare. Due to this, wealthier individuals who can afford higher tier insurance are taxed again, in order to help pay for the Medicare services of someone who does not pay for their own.
Switch Coverage
When selecting Medicare coverage, recipients can change the kind of coverage they receive from the program on a yearly basis.