Medicare Benefits
In addition to Social Security, you may qualify for Medicare. There are two parts to Medicare:
- hospital insurance (also called Medicare Part A)
- medical insurance (also called Medicare Part B)
Eligibility
Generally, people over age 65 who are getting Social Security automatically qualify for Medicare. So do people who have been getting disability benefits for two years.
Medicare Part A
The cost of Medicare Part A is paid by a portion of Social Security taxes. Part A helps pay for in-patient hospital care, skilled nursing care, and other hospital services.
Medicare Part B
The cost of Medicare Part B is paid by monthly premiums from those enrolled. Part B helps pay for doctor fees, outpatient care, and medical services and supplies. Metro's insurance is specifically designed to work with Medicare Parts A and B. This coordination is one reason Metro retirees have quality medical insurance that many other retirees do not have. When you need care, Medicare pays its share (doctors and hospital bills) and Metro's insurance pays its share (prescriptions and the other bills Medicare doesn't cover). That's also the reason you get a big discount on your Metro insurance once Medicare kicks in. Medicare and Metro's insurance combine to give you a level of coverage comparable to what you enjoyed as an employee.
Part B is optional. However, it is very important that you take it if you qualify. If you are eligible for Medicare Part B but do not elect it, your medical claims will be processed as if you do have Part B and you will be responsible for at least 80% of all your medical bills. By not electing Part B, you may be responsible for a substantial portion of your claims.
Applying for Medicare Benefits
You should sign up for Medicare three months before you reach age 65, even if you don't plan to receive retirement benefits right away. For more information, contact your local Medicare office (see the U.S. Government section of your local phone book for the office nearest you).
Critical Alert
Effective October 1, 1993, all pensioners and their spouses who turn 65 are sent a card from Medicare that explains Medicare Parts A and B. If you return the card, you decline Parts A and B coverage. Do not return the card. (If you have previously returned the card and declined coverage, please contact Medicare.)
When you elect Medicare Parts A and B your Medicare premiums will be automatically deducted from your Social Security check, and your Metro pension will be adjusted to cover the majority of those premium costs. Please let us know when you get Medicare Parts A and B so that we can adjust your premiums.