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Bob's Thoughts

Medicare: What You Need to Know Before You Enroll

4/24/2018

1 Comment

 
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​If you’re approaching retirement, you likely have some big milestones ahead. One of the most important may be enrollment in Medicare. You’ve been paying into Medicare your entire career. Retirement is your opportunity to finally benefit from those contributions.

Medicare is a valuable service that extends medical insurance to retirees. It is generally available starting at your 65th birthday. Originally, Medicare simply provided coverage for hospitalizations. Over time, however, the program has become more robust and complex.
 
Today’s retirees face a wide range of choices and benefit options. Some come with added protection but also additional premiums. You may find it helpful to review your options and analyze your needs. By choosing the right protection package, you can minimize the impact health care has on your retirement assets.
Below are some common questions and answers about Medicare enrollment. If you haven’t yet planned your health care strategy, now may be the time to do so.

When do you sign up for benefits?
You are eligible for Medicare benefits when you turn 65. However, you have a seven-month enrollment window that includes the month you turn 65 plus three months before and after. You are automatically enrolled in Medicare Part A at this time. Part A covers hospitalizations and comes with no premiums.
 
However, you are not automatically enrolled in Part B or any of the other optional Medicare programs when your turn 65. If you fail to enroll in those programs, you may have to wait until the next open enrollment period. That could leave you temporarily exposed to high out-of-pocket health care costs.

What are your coverage options?
Medicare offers a number of different protection programs. First is hospitalization coverage, known as Part A. Another popular option is Part B, which covers doctor visits. Part B has premiums and is offered in a variety of levels, each with its own copay and deductible.
 
Part C is often referred to as Medicare Advantage. It’s a program in which you can purchase a policy through a private insurer. These policies typically include all the coverage that comes with parts A and B plus additional protection for other treatments and services. Premiums, copays and deductibles vary with Part C.
 
Finally, the most recent addition to Medicare is Part D, which covers prescription drug costs. Again, this is an optional program that comes with additional premiums. Given the high costs of some drugs, however, Part D could be a useful resource.

Does Medicare cover all health care costs?
Medicare is a valuable benefit for retirees, but it doesn’t cover everything. In fact, it covers only a portion of most services. Other services, such as dental care or vision, aren’t covered at all. That means you could face significant out-of-pocket health care costs. In fact, Fidelity estimates that the average retired couple will spend $275,000 on out-of-pocket health care expenses.1
 
In addition to planning your Medicare coverage, you may want to develop a strategy for managing out-of-pocket expenses. Your strategy could include a health savings account, supplemental health coverage and even long-term care insurance.
 
Ready to develop your health care strategy? Let’s talk about it. Contact us today at Safe Retirement Strategies. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.

 
1https://www.fidelity.com/viewpoints/retirement/retiree-health-costs-rise
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17510 - 2018/3/26

1 Comment
Sandra Patterson link
5/23/2019 04:33:05 pm

Thank you for explaining that Medicare only covers a portion of the costs of services. My sister has been thinking about enrolling in Medicare recently as a source of insurance. I will be sure to forward the article to her, sot that she can see what she can expect from it.

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​Bob Lindquist
Phone: 913.814.9600

bob@boblindquistkc.com
Safe Retirement Strategies
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Overland Park, KS 66210

*Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.

​Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
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