Medicare is one of the essential healthcare programs in the United States. The Medicare program insures over 54 million people and provides coverage for hospitalization, medical services, doctor visits, and prescription drugs. All American citizens are eligible for enrollment in Medicare if they are at least 65 years old or have been a resident of the US for at least five consecutive years and meet financial requirements. Enrollment is allowed from January 1 to December 7 every year. During this period, you must enroll in Part A (hospital insurance) and Part B (medical insurance).

Many people take this period for granted and think enrolling in Medicare is as simple as filling out a form and mailing it back. It is not the case.

1. Saving on premium costs

The monthly amount you pay in premiums can vary greatly depending on your income, geographic location, and other factors says Medicare specialist from Clearmatch Medicare. Regardless of your circumstances, you can save money by signing up during the initial enrollment period. For example, if you live in a low-cost state like Texas, it will cost $73 a month to enroll during this period compared to $138 without Medicare.

2. Coverage options

Medicare offers coverage for medical services and prescription drugs but does not cover most dental or vision services. However, you may be able to enroll in a Medicare Advantage plan that provides additional health care benefits, usually at a higher cost than traditional Medicare coverage.

3. Medicare Advantage

Medicare Advantage is an alternative private insurance companies offer to cover medical and drug expenses. These plans are separate from traditional Medicare coverage, meaning you need to enroll in parts A and B of Medicare when signing up for a Medicare Advantage plan. Many different methods are available; they are all required to provide the same benefits to enrollees as traditional Medicare coverage.

The enrollment period lasts anywhere from four weeks to six weeks or longer in some states, during which time you can simultaneously sign up for Parts A and B. If you miss this window and wish to enroll in Medicare, you must pay a late-enrollment penalty that can be expensive.

4. The penalties

If you decide to enroll in Medicare later than during the initial enrollment period, it is essential to know that fines are associated with late enrollment. If you do not sign up for Part B during the initial enrollment period, you will have to pay a 10% late enrollment fee every year after your Part B eligibility date.

You will only have to pay 25% of your monthly premium for Social Security coverage to avoid paying the penalty.

If you don't sign up for Medicare during your initial enrollment period, you may be able to sign up for a Medicare health plan without paying a late enrollment penalty. To do so, you need to enroll in a Plan D.

This plan is only available for some, and it is only available in limited areas.

5. Medicare Prescription Drug Plans

Medicare prescription drug plans are also available if you are eligible for coverage and wish to enroll in a Medicare Advantage plan. Sometimes, these plans also provide dental and vision benefits that traditional Medicare does not offer.

How do I know what Medicare coverage I need?

You may be eligible to enroll in Part B of Medicare if you are 65 or older, are a US citizen, and have been a permanent resident or landed immigrant in the US for at least five years. Or, you may be eligible if you are between 55 and 64 and have worked at least ten years in the US. To qualify, you must also meet financial requirements (you must have assets less than $85,000) and pass a health assessment. The process is pretty simple. You will need to complete an application form with your personal information, answer health questions about your medical history, and schedule an appointment with a healthcare provider for screenings.

Once you have passed all the required Medicare enrollment tests, you will submit a form called the Application for Enrollment in Original Medicare Part B Program to your local Social Security office.