Medicare and Social Security Glossary
Clear, plain-language definitions for the terms that come up most often in Medicare and Social Security decisions.
B
- Bend PointsSocial Security
- Bend points are dollar thresholds used in the Social Security formula to calculate your Primary Insurance Amount (PIA). The formula replaces a higher percentage of lower earnings and a lower percentage of higher earnings. Read more
D
- Delayed Retirement CreditsSocial Security
- Delayed Retirement Credits are increases added to your Social Security benefit for each month you delay claiming past your Full Retirement Age, up to age 70. Read more
E
- Earnings RecordSocial Security
- Your Social Security earnings record is the official record maintained by the Social Security Administration of all wages and self-employment income you have reported over your working life. Read more
F
- Full Retirement AgeSocial Security
- Full Retirement Age (FRA) is the age at which you become eligible to receive your full Social Security retirement benefit, without any reduction for claiming early. Read more
I
- Initial Enrollment PeriodMedicare
- The Initial Enrollment Period (IEP) is a 7-month window when you can first sign up for Medicare. It begins 3 months before you turn 65, includes your birthday month, and ends 3 months after. Read more
L
- Late Enrollment PenaltyMedicare
- A late enrollment penalty is a permanent increase to your Medicare premium if you do not sign up for Part B or Part D when you are first eligible and do not have qualifying other coverage. Read more
M
- Medicare AdvantageMedicare
- Medicare Advantage (Part C) is a type of Medicare plan offered by private insurers as an alternative to Original Medicare. These plans cover all Part A and Part B services and often include extras like dental, vision, and prescription drugs. Read more
- Medicare Part AMedicare
- Medicare Part A is hospital insurance. It covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health services. Read more
- Medicare Part BMedicare
- Medicare Part B is medical insurance. It covers doctor visits, outpatient care, preventive services, and durable medical equipment. Read more
- Medicare Part CMedicare
- Medicare Part C, also called Medicare Advantage, is an alternative way to receive your Medicare benefits through a private insurance company approved by Medicare. Read more
- Medicare Part DMedicare
- Medicare Part D is prescription drug coverage. It is offered through private insurance companies approved by Medicare. Read more
- Medicare SupplementMedicare
- Medicare Supplement Insurance, commonly called Medigap, is private insurance that fills the gaps in Original Medicare coverage — including deductibles, copayments, and coinsurance. Read more
O
- Open Enrollment (Medicare)Medicare
- Medicare Open Enrollment, also called the Annual Enrollment Period, runs from October 15 to December 7 each year. During this time you can join, switch, or drop a Medicare Advantage or Part D plan. Read more
P
- Primary Insurance AmountSocial Security
- Your Primary Insurance Amount (PIA) is the monthly Social Security retirement benefit you would receive if you claimed exactly at your Full Retirement Age. Read more
S
- Special Enrollment PeriodMedicare
- A Special Enrollment Period (SEP) is a time outside the standard enrollment windows when you may join or change Medicare coverage due to a qualifying life event. Read more
- Spousal BenefitSocial Security
- A spousal benefit allows you to receive Social Security based on your spouse's earnings record, up to 50% of their Primary Insurance Amount, if that is higher than the benefit you earned on your own record. Read more
- Survivor BenefitSocial Security
- A survivor benefit is a Social Security payment made to the surviving spouse, children, or other dependents of a deceased worker who had enough Social Security work credits. Read more
W
- Windfall Elimination ProvisionSocial Security
- The Windfall Elimination Provision (WEP) is a rule that reduces the Social Security benefit of workers who receive a pension from a job not covered by Social Security, such as certain government or foreign employer jobs. Read more
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