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Social Security and Medicare are related. Many seniors begin receiving benefits from both at approximately the same time. However, they are two different programs administered by other federal agencies, which provide different benefits to older adults.
Social Security was created to promote the economic security of Americans. It is administered by the Social Security Administration (SSA) and designed to pay continuing income to retired workers ages 65 and older. On August 14, 1935, after the Great Depression of the 1930s, President Franklin Delano Roosevelt signed the Social Security Act as part of his New Deal.
Social Security benefits are designed to replace part of your earnings when you retire. The number of benefits you are entitled to receive is calculated based on your highest 35 years of earnings. While you are working and paying Social Security taxes, the money you pay into the program is not held in an account specifically for you. It is used to pay benefits to people who:
Medicare is a federal health insurance program for people aged 65 or older. The Centers administer it for Medicare & Medicaid Services (CMS). Medicare has distinct parts that provide coverage for specific medical services:
You can sign up for Medicare during your initial enrollment period, which begins three months before you turn 65, includes the month you turn 65 and ends three months after you turn 65. When you enroll, you choose between Original Medicare and a Medicare Advantage Plan (under Part C). Either way, you pay a monthly premium for Medicare Part B coverage
Both options have certain advantages and disadvantages:
If you need assistance applying for Social Security benefits, enrolling in Medicare, or both, speak with our experienced agent. We are always happy to help.
Filed Under: Medicare | Tagged With: Medicaid, Medicare, Medigap Insurance, Original Medicare