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Social Security Benefits
How to apply for Social Security, Medicare, Prescription Drug Benefits
Full retirement age for Social Security benefits is gradually increasing to age 67. If you were born between 1943 and 1954, you
should think carefully before deciding to take early retirement as the age for receiving Social Security is 66. People born in 1960 or
later reach full retirement age at 67. Early retirement will be more costly for both of these age groups. If you were born during
these years you will see your Social Security benefit reduced by 25% if you elect to retire at age 62. People born in 1937 or earlier
have been able to retire at 62 with only a 20% reduction. Anyone born in 1960 and later will face a 30% reduction. No matter what your
full retirement age is, you may start receiving benefits as early as age 62.
You can also retire at any time between age 62 and full retirement age. However, if you start at one of these early ages, your
benefits are reduced a fraction of a percent for each month before your full retirement age. Social Security tool:
http://www.ssa.gov/planners/calculators.htm
Enter your age and current income and the site will give you a ballpark monthly benefits estimate for early, regular or delayed
retirement as well as estimated disability and survivor benefits.
The Social Security Web http://www.ssa.gov/ gives all kinds of worthwhile
information including:
- Calculating your benefits
- How to apply for social security benefits and disability benefits
- Retirement planning information
- Marriage, divorce, name change
- Death in the family
- Ability to download forms
- Order or view publications
- Sign up for a free electronic newsletter on social security matters
Call Social Security at 1-800-772-1213 or visit their website www.socialsecurity.gov
where you can apply for benefits Get the address of your local Social Security office; and get forms to request important documents,
such as a Social Security Statement, a replacement Social Security or Medicare card or a letter to confirm your benefit amount.
Valuable booklets from Social Security
Go to http://www.ssa.gov/pubs/10035.html
Electronic Booklets website and click on any of these links to get information on:
- Social Security and your retirement plans
- Your retirement benefits
- Family benefits
- What you need to know when your are eligible for retirement benefits
A word about Medicare
Medicare is a national health insurance plan for people who are 65 or older. (Although the full retirement age for Social Security
benefits is increasing, the age to qualify for Medicare remains 65.) People who are disabled or have permanent kidney failure can get
Medicare if they are younger than 65.
Medicare has two parts—hospital insurance and medical insurance. Most people have both parts. Hospital insurance, sometimes called
Part A, covers inpatient hospital care and certain follow-up care. You already have paid for it as part of your Social Security taxes
while you were working. Medical insurance, sometimes called Part B, pays for physicians’ services and some other services not covered
by hospital insurance. Medical insurance is optional, and you must pay monthly premiums.
If you are already getting Social Security benefits when you turn 65, your Medicare starts automatically. If you are not getting
Social Security, you should sign up for Medicare before your 65th birthday, even if you are not ready to retire. For more information,
call us to ask for the publication, Medicare (Publication No. 05-10043).
Medicare supplemental insurance.
In 2007 you will have responsibility for the first $992 of any hospital stay. If your hospital stay is longer than 60 days you will
have to pay $248 per day for every day of hospitalization from the 61st day to the 90th day. Starting with the 91st day you spend in
the hospital and up to the 150th day you will have responsibility for $496 per day. If yoou are in a skilled nursing facility from day
21 to day 100 you will be responsible for $124 per day.
Physician visits and other services covered under Part B incur a $131 deductible and a coinsurance amount of 20%.
Medicare supplemental insurance may help pay for these deductibles and coinsurance amounts.
Prescription drug coverage
Sign up right away for if you wait to enroll for prescription drug coverage until you need a lot of prescription drugs you will be
subject to a penalty for the remainder of your life resulting in a substantial expenditure.
Subsidies are available if your income is below 150% of the poverty level and have recourses below $10,000 for an individual and
$20,000 for a couple. In 2007, Part B premiums will range from $93.50 per month to $162.10 per month depending on income. Individuals
with incomes above $80,000 or $160,000 for a couple, will be required to pay more than the base $93.50 per month.
Research the available coverage at www.Medicare.gov, and check to see if there is a better provider of prescription drug coverage
available. This Web site allows you to check your total out-of-pocket costs you would expect to pay under one plan versus another
based on your prescriptions.
If you are already enrolled in a plan you can check this site to see if there might be a way to save money by switching providers in
2007. If you fell into the gap in coverage called the donut hole in 2006, you might consider switching to a more cost effective plan
during open enrollment that provides coverage for this gap. You will pay an increased premium to avoid the gap, but it will often it
will be worth the extra expenditure.
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