After turning 65 in November, I recently signed up for Medicare.

At first, I didn’t want to. I was perfectly satisfied with using Samaritan Ministries. It is not an insurance program but rather Christian organization that shares expenses.

It works very well and we have saved thousands of dollars in monthly costs and medical costs using Samaritan.

I am relatively healthy and I thought I would wait a few years before signing up for Medicare.  Medicare is a government-run insurance plan that is for Americans age 65 and older.

Here was the problem. Medicare Plan A, which helps pay for hospitalization, is free. Medicare Plan B, which covers doctor visits, costs $135 a month.

If I took Plan A, but not Plan B, the cost for Plan B would go up for me every year until I signed on. I plan to live a few more years and that would have proved costly if I signed up later.

The exception is for those who keep working at age 65 and older.  I am working but since I am covered by a sharing plan rather than traditional insurance, I would be subject to the annual premium increases.

I had some meetings with Jeff Brucculeri, who sells insurance, about my options. Basically, there are two types of plans that accompany Medicare Plans A and B. One set is called an “advantage plan” and the other set are “supplements.”

What’s the difference?

Well, advantage plans cost less and offer less. Supplements cost more and are more comprehensive.

Remember – this is a government program, so it is unnecessarily complicated. And I am describing it in simple terms.

In fact, there are some advantage plans that have no monthly costs.

What?

I asked how that is possible. The answer is that the federal government contracts with private insurance carriers to help with the cost of Medicare plans. I was intrigued by the idea of only having to pay $135 a month (for Plan B) and getting some pretty good coverage.

Instead, I opted for a supplemental plan. It is more expensive but it is only a bit more than I am paying each month to Samaritan Ministries. I didn’t want to pay double for coverage, so I dropped Samaritan.

Here’s why I chose a supplemental policy. When you first sign up for Medicare, you have a window in which they take you as you are. Down the road, if you want to switch policies, going from a low-cost advantage plan to a higher cost supplement might require a medical report. So, if I developed some chronic problem and had an advantage plan, I might not be able to upgrade or if I did upgrade, the cost of the supplemental could be a lot higher.

If you have a supplemental policy and you decide down the road to switch to an advantage plan, that could be seamless (especially if you stay with the same insurance company).

I don’t take any prescribed drugs on a daily basis but I signed up for a drug plan because I might need them later. And again, the price goes up each month that you opt out.

This is interesting. Seventy-five percent of the people who reach Social Security retirement age start their payments at age 62. This is surprising to me because there is a possible tax income penalty if you do that and keep working before you reach age 66 (which is my official Social Security Retirement age). The government likes to deduct your Medicare Plan B monthly premium from your retirement check. Since I am not drawing retirement, I will send them a check every three months to pay for Plan B.

Why do people do take early retirement, especially since the monthly check goes up every year until you reach age 70? Well, some people need the money. You can’t argue with that. Others feel like Social Security is in trouble and their money won’t be there in the future. That’s a legitimate argument. Others may be in poor health and are worried about their longevity. They want their money now. I am sure some folks take it because the formula is too complicated to understand.

Lord willing, I will work until I am 70 and then draw Social Security. Medicare comes under the Social Security Administration.

Medicaid is welfare. Medicare is a program that I have paid for almost 50 years with payroll deductions. Medicare is not a government handout – it is an obligation that the federal government made in good faith with me as they took my money for all those years.

I spoke with several friends of my who use Medicare and they all seem pleased. I am sure that is not the case for everyone but it was nice to hear.

Liberal Democrats and other Socialists want to extend Medicare to everyone. That is absurd. It would bankrupt the nation.

So I am signed up. I will let you know how well it works.