Signing up for Medicare insurance when you turn 65 is a right of passage for many aging Americans. However, there is a limited window of opportunity to enroll in Medicare insurance without facing penalties such as a delay in coverage. That is why it is important to be prepared and to know your options in advance.

Signing Up for Medicare Insurance Coverage

"Seniors who will soon turn 65 should know that there is a seven-month period in which to sign up for Medicare," said Alan Weinstock, insurance broker with Medicare supplement insurance plans "This period spans from three months before the month in which you turn 65 to three months after the month in which you turn 65." Simply put, if you expect to turn 65 in June, you can enroll in Medicare during the seven-month period between March 1 and September 30.

Alan Weinstock added that if you sign up early, your coverage begins the month you turn 65. However, if you sign up after your birthday, it starts on the first day of the month after you enroll.

Eligible seniors who receive their Social Security benefits when they turn 65 will be automatically enrolled in Medicare. That means if you continue to work and don't apply for these retirement benefits, you will have to sign up for Medicare at a future time.

If you continue to work after the age of 65 and are covered by your employer's plan, the Centers for Medicare and Medicaid Services recommends that you sign up for Medicare Part A anyway. You can also sign up for Medicare Part B, but you may want to forego doing so until a later date.

Medicare Part A through Part D

There are four parts to Medicare. This first, known as Part A, is for hospital coverage. Anyone who has worked and paid into Medicare for 40 quarters or more receives coverage for hospitals, skilled nursing homes, home health care and hospice. There is no premium for Medicare Part A unless you worked fewer than 40 quarters, or 10 years of work.

Medicare Part B is medical insurance which covers doctor's services, outpatient care, like the cost of lab work and X-rays and certain preventative care services. The premium for Medicare Part B is automatically taken from your monthly Social Security benefits.

Medicare Part C, also known as Medicare Advantage Plans, offers another option. This combines Part A, Part B, and, sometimes, Part D coverage. Medicare Advantage Plans are managed by private insurance companies and must cover medically necessary services. Plans may charge different co-payments, co-insurance or deductibles.
Finally, the last portion is Medicare Part D, the prescription drug coverage plan. The costs vary depending on the plan you select. However, usually you pay less for your prescriptions using this plan.

"The best thing to do is to know your options well before your 65th birthday," Alan Weinstock said. "That includes not only knowing about Medicare Parts A through D, but also understanding how Medicare supplement insurance might be right for you."

For more information about Medicare Part A through Part D, check out the U.S. Department of Health and Human Services.