With all this market volatility and inflation, talk about investment strategies and portfolio longevity seems to dominate the discussion on retirement. But one of the most important aspects of retirement is often overlooked: Medicare.
Medicare is a an important health insurance that can provide the support you need to take care of your health in retirement. Without factoring in your healthcare costs and looking for cost-saving solutions to cover them, you could be spending more than you should for basic healthcare needs.
For Americans 65 and older, Medicare should be front and center in the conversation of healthcare coverage because it drastically reduces its cost. Staying healthy for as long as possible by eating healthy and exercising well is doable, but it’s a fact of life that we will need to take more care of our health as we age. So, because you’re eligible for Medicare coverage at age 65, health insurance may become much more affordable.
Medicare open enrollment for 2022 is October 15through December 7. So, make sure you have a plan to factor in Medicare to your retirement strategy.
When you retire, it’s important to understand how Medicare works and how you can get the best coverage for your unique needs in the most cost-effective way. Many retirees wonder how to determine whether they need all four parts of Medicare.
Questions about Medicare costs, supplemental insurances, and enrollment periods often arise as well.
- Usually, open enrollment usually lasts roughly seven months and starts 3 months before the month of your sixty-fifth birthday.
- Medigap insurance is provided by private insurance companies and can help pay for expenses not covered under Medicare. However, Medigap insurance is not allowed for those with a Medicare Advantage Plan.
- Medicare often varies in cost based on which parts you enroll in. There are 4 parts you can enroll in for Medicare – Part A, Part B, Part C, and Part D – each of which provides coverage for different types of healthcare.
- In general, Part A provides hospital and long-term care coverage.
- Part B provides coverage for necessary care such as doctor visits and preventative care services as well as physician services and some drug prescription coverage.
- Part C is Medicare Advantage coverage which is sold by private insurance companies for areas not covered by part A or part B Medicare.
- And Part D is for prescription drug coverage.
It’s important to know that there is no action needed for you to enroll in the Medicare program. If you have a Social Security number, you will automatically be enrolled when you reach the eligibility dates. No matter which parts of Medicare you might need, it’s important to figure out how you’ll utilize Medicare in your overall retirement plan. But figuring that out is easier said than done. Look at your plan for healthcare coverage in retirement and make sure it works to meet your goals.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
https://www.retireguide.com/medicare/
https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/parts-of-medicare