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STILLWATER, Okla. – The first of 78 million baby boomers are set to turn 65 in 2011, which will make them Medicare eligible.

Eileen St. Pierre, Oklahoma State University Cooperative Extension personal finance specialist, said those eligible can sign up beginning three months before the month they turn 65.

“Coverage typically begins on the first day of your birth month,” St. Pierre said. “If your birthday is on the first day of the month, coverage will start the first day of the prior month.”

Those individuals who wait until their birth month or later to sign up may experience delays.

St. Pierre said those who turn 65 should sign up quickly to avoid a 10 percent Part B premium increase for each 12- month period they could have had Part B, but did not sign up for it.

“If you are still working and are covered by group health insurance, you can delay Medicare enrollment. But you will need to sign up within eight months after your group coverage ends to avoid the penalty,” she said.

Social Security

Many of the oldest baby boomers have not reached the age when they can qualify for the full amount of Social Security benefits.

“Baby boomers born in 1946 have to reach the age of 66 to receive full payments,” St. Pierre said. “Those who have already signed up or plan to this year will receive reduced payments for the rest of their lives. For every month you take Social Security early, your benefit payment will be reduced by 1/180 or about 0.56 percent. If your monthly benefit payment would have been $1,500 but you retire two years before full retirement age, you will only receive $1,300 a month for the rest of your life.”

Baby boomers who wait as long as possible before signing up for Social Security can lock in a higher payment. The longer you wait, the higher your benefit payments, up until age 70 when there is no further incentive to delay claiming. If you delay retirement for two years, a $1,500 monthly benefit will grow about 8 percent a year to $1,750. By delaying, you will receive an extra $250 a month for the rest of your life.

Get information

There is a lot of help out there to guide baby boomers through this process. For more information on Medicare, go to . However, you will need to contact the Social Security Administration to apply for Medicare but you no longer have to visit your local Social Security office. Visit to access the on-line application. To get an estimate of your Social Security benefit payments, go to .

Oklahoma State University,

Writer: Katie L. Reim, 405-744-6792, katie.reim@okstate.edu

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