Dave Ramsey has 3-word warning on major Medicare concern

The personal finance radio speaks on Medicare eligibility and how to prepare.

Mar 6, 2025 - 01:09

Dave Ramsey has 3-word warning on major Medicare concern

Many people nearing retirement age wonder about how their health care coverage will be handled. And the answer for most is Medicare.

Personal finance bestselling author and radio host Dave Ramsey has a few words of advice and explains one big thing regarding the best time to think about enrolling in Medicare.

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First, it's important to understand the parts of Medicare.

Medicare Part A covers in-patient hospital stays, skilled nursing facilities, hospice, and some home health care.

Medicare Part B involves outpatient care, doctor services, preventive care (including regular checkups with a primary care physician), and medical supplies.

Medicare Advantage, also known as Medicare Part C, is covered by private insurance companies. It covers Part A and B, and gives people more options from which to choose, often including additional benefits such as vision, dental and hearing.

Prescription medication is covered by Medicare Part D. Costs for those necessities vary, depending on one's health care needs.

Ramsey steps in with an important three words that people already anticipating the need to enroll in Medicare already know.

A retired couple is seen walking along a beach. Personal finance bestselling author Dave Ramsey explains the right time to enroll in Medicare.
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Dave Ramsey states in 3 words a Medicare fact that people should know

Ramsey explains that people who are looking at Medicare options may well be of the age that they have already received mail and messages from outfits that are making attempts to sell folks on their plans. He warns people about the age when they are eligible to enroll in three words.

"The big 6-5," he wrote.

Ramsey clarifies that people who are nearing 65 are often wondering about who is eligible for Medicare.

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The radio host discusses the answer to that question with a few quick words.

To be eligible for Medicare, you must be age 65 or older, or be disabled, have end-stage renal disease, or have ALS (Lou Gehrig’s disease).
Medicare is available for U.S. citizens or folks with legal residency.
To be eligible for Medicare Part A premium-free, you must have worked and contributed to Social Security for at least 10 years.

Dave Ramsey explains other key points on Medicare eligibility

Ramsey mentions that anyone who pays Social Security taxes is funding Medicare in the process. So a work history qualification is required to receive Medicare benefits.

That means that American workers who have paid that tax for 10 years will qualify for Medicare Part A. People with disabilities qualify based on health considerations. Spouses can also qualify, based on conditions such as the amount of time they are officially married to an eligible partner.

There are no free premiums associated with Medicare Part B, so one's working career is not a factor. The requirement is only to be "the big 6-5."

In order to be eligible for Medicare Part C (Medicare Advantage), the private insurance alternative, a person needs to be enrolled and Parts A and B, live in the area where the plan applies, and be a U.S. citizen or a lawful permanent resident (LPR).

Medicare Part D coverage — the cost of prescription drugs — has an eligibility requirement entailing being enrolled in either Part A or Part B (or both). A person can get this benefit during their initial enrollment period (or during the Medicare Advantage enrollment period) if they are dropping a Medicare Advantage plan and choosing to go back to Original Medicare.

Ramsey has few other words about Medicare, offering a bit of understanding about the complicated nature of dealing with the enrollment process.

"At this point, we’re stating the obvious, but — Medicare is complex," Ramsey wrote. "Just keeping the different enrollment periods straight is enough to make your brain melt."