Learning Center
Alabama Medicare 101 Workshop Videos | Learning Center
Your ultimate resource for all things Medicare and insurance-related.
Medicare doesn’t have to be confusing.
Whether you’re turning 65, helping a loved one, or simply trying to understand your options, our Learning Center is here to make Medicare easier to understand. Browse the topics below to find straightforward answers and practical resources that will give you the confidence to make informed decisions.
Medicare Basics: Start Here
New to Medicare? This is the best place to begin. Learn the fundamentals of how Medicare works, understand the different parts of Medicare, and become familiar with the terms you’ll hear along the way. If you’re looking for a solid foundation before making any decisions, start here.
When to Sign Up for Medicare
Knowing when to enroll is just as important as knowing what to choose. Learn about Medicare enrollment periods, what to do if you’re still working, how to avoid costly penalties, and the steps to enroll with confidence.
Comparing Your Medicare Options
Everyone’s healthcare needs are different. Explore the differences between Medicare Advantage, Medicare Supplement (Medigap), and Part D prescription drug plans so you can better understand which options may be the right fit for your situation.
Medicare Costs & What’s Covered
Wondering what Medicare pays for — and what it doesn’t? Find answers about premiums, deductibles, prescription drug costs, and coverage for services, so you know what to expect before you enroll.
Need Help Finding the Right Information?
If you’re not sure where to start, or you’d rather talk with someone who can answer your questions, we’re here to help. Our team provides honest guidance and personalized Medicare advice to help you feel confident about your next steps.
Frequently asked questions
Maybe but probably not and here’s why: Medicare has two main parts A (hospital) and B (medical). Most of us have either worked at least 10 years or married to someone who has and has paid enough FICA taxes to qualify for Part A without premium. You’ll hear people say Part A is “free” but that’s not true. We earn it throughout our working lives making us entitled to it when we become eligible for Medicare. You can’t be penalized for something you are entitled to so if you or your spouse has worked at least 10 years there will be no penalties for Part A.
Where penalties are more likely to happen is with Part B. That is the physician/medical portion of Medicare. Think all things outpatient. Your FICA taxes, however, don’t pay toward Part B so there is a monthly premium. When you are turning 65 and you or your spouse are actively working, have company health insurance through that employer, and that employer has at least 20 employees you do not have to have Medicare Part B. You will not be penalized at a future date as long as you can prove you’ve had creditable coverage.
If you don’t have employer coverage at age 65 and don’t sign up for Medicare Part B you will face a 10% penalty for each year you go without coverage.
The most important thing is to make sure you have active employer coverage and you won’t face penalites.
If you are entitled to Part A and not contributing to a Health Savings Account, we do recommend enrolling in Part A at age 65. There really isn’t a reason not to.
That’s the million-dollar question, and honestly, there isn’t a one-size-fits-all answer. It comes down to running a side-by-side comparison of your total annual exposure, not just the monthly premium.
Most group plans are heavily subsidized by your employer, but you need to look at the ‘hidden’ costs: the out-of-pocket maximums, deductibles, and specifically, the prescription drug formulary. One thing to consider is that if you and your spouse are both Medicare-eligible, it may be cheaper for the actively working employee to switch to single coverage while the other spouse transitions to Medicare.
Ask your HR department for the ‘Summary of Benefits’ for your group plan so we can run the numbers against a standard Medicare setup.
The IRS considers Medicare Part A to be “other coverage,” which means you’re no longer eligible to make new contributions to an HSA once you’re enrolled. If you contribute anyway, you’ll owe income tax on those funds plus a 6% excise tax every year the excess remains in the account.
Medicare Part A can be backdated up to six months when you apply, so those past six months of contributions are often considered ineligible and subject to the same penalties. If you’re still working and want to keep your HSA open for contributions, the common strategy is to delay enrolling in Medicare Part A until you retire. If you’ve already contributed while on Medicare, consult a tax pro to help you withdraw the excess and avoid compounding penalties.
If you’re working past 65 and have credible health insurance through your employer (or your spouse’s), you don’t have to sign up for Medicare right away. However, you may have enrolled in Part A at 65 but waived Part B. Either way, dropping that employer coverage you’ll actually be entering what’s called a Special Enrollment Period (SEP) when you leave that coverage.
As long as you’ve had that “credible” coverage since turning 65, you won’t be hit with late enrollment penalties when you do decide to sign up.
Here’s how you handle it:
If you already have Medicare Part A, you’ll need to complete two specific forms:
CMS-40B: This is your actual application to enroll in Medicare Part B.
CMS-L564: This is the “Request for Employment Information.” You’ll need to take this form to your employer’s HR department to have them fill it out. This acts as your “get out of jail free card,” proving you’ve been covered under their plan since you turned 65 so you don’t get slapped with a late penalty. **important note** If you have had multiple employers after turning 65 you’ll need an CMS-L564 from each employer.
Once those are ready, you have three main ways to apply:
Online: You can head over to SSA.gov to apply. You’ll just need to create an account at Login.gov first.
Drop off in-person or by fax: You can go to www.ssa.gov/locator search for your local office by Zip Code and click office information. It will give you the physical address of the office closest to you and its fax number.
By Phone (if you need to enroll in Part A): You can call Social Security at 1-888-772-1213 to schedule a phone appointment. A representative will call you at a set date and time to finish the application.
Start this process about two months before your employer coverage actually ends to make sure the transition is seamless.
Yes, it certainly can. This extra charge is called IRMAA, which stands for Income Related Monthly Adjustment Amount.
The government calculates this by looking at your tax returns from two years ago. So, the premium you pay in 2026 is actually based on what you earned in 2024. If your income was high back then, you’ll be hit with this surcharge—even if your income has dropped significantly since.
However, you aren’t stuck with that higher rate if your income has changed due to a “Life-Changing Event.” If you recently retired, divorced, lost a spouse, or experienced another qualifying event that reduced your income, you can request a reduction.
You’ll need to complete form SSA-44, titled “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event.” This form tells Social Security that your tax return doesn’t reflect your current financial reality. Once approved, they will adjust your Part B (and Part D) premiums down to match your current income level. It’s a bit of paperwork, but it is well worth it if it saves you from paying unnecessary surcharges.
This can be tricky, because often it’s not just you to worry about, it’s also a spouse or other dependents. When you leave an employer COBRA is usually an option for 18-36 months but it can be expensive. COBRA is a continuation of the same employer benefits you have had except without the company paying a portion of the premium.
Marketplace/ACA plans, also known as Obamacare, are an option. We are licensed to help with these plans as well. The premiums are set by the insurance company, but the Federal Government provides an immediate tax credit to your premium to make the plans more affordable. To receive a tax credit your adjusted gross income needs to be between 100%-400% of the Federal Poverty Level. These plans are regulated by the Federal Government and no one can be denied due to pre-existing conditions. They are commonly referred to as Bronze, Silver, or Gold plans.
You might come across Health Care Sharing Ministries (HCSMs) as a lower-cost alternative to traditional health insurance. It’s important to understand that these are not legally considered “insurance.” Instead, members contribute to a pool used to share medical costs with one another based on shared religious or ethical beliefs. Because they aren’t regulated like ACA/Marketplace plans, they don’t have to follow the same rules—meaning they can deny coverage for pre-existing conditions, and they aren’t legally required to pay your claims. While they can sometimes be more affordable, it’s critical to go in with your eyes wide open about the lack of legal protections and coverage guarantees compared to a standard health plan.
You become eligible for Medicare when you turn 65, but “when you should enroll” depends entirely on your current work situation.
If you are turning 65 and NOT working: You’ll have a seven-month “Initial Enrollment Period.” This window starts three months before your birthday month, includes your birthday month, and ends three months after. It’s best to sign up during those first three months to ensure your coverage starts right when you turn 65.
If you ARE working: If you or your spouse are still actively working and have credible employer coverage (at a company with 20 or more employees), you generally don’t need to enroll in Part B at 65. You can defer enrollment until you retire or lose that coverage, which triggers a Special Enrollment Period. Just make sure to handle the transition properly—ideally starting the process a couple of months before your employer coverage ends—to avoid any gaps or penalties.
The Part A Exception: Even if you delay Part B because you’re still working, many people choose to enroll in Medicare Part A at 65, provided they aren’t contributing to a Health Savings Account (HSA). Since most of us have “earned” Part A through our FICA taxes over the years, there’s rarely a downside to enrolling if you aren’t using an HSA.
The bottom line? If you’re working, you have more flexibility. If you’re retiring at 65, you’ll want to lock in your coverage ahead of time to make sure your transition is seamless.