When Americans reach the age of 65 or older, they may be eligible for Medicare coverage. One can avoid many Medicare mistakes if they have a solid understanding of how it works. This is especially important if one is approaching retirement and will be enrolling in Medicare soon. Check out this helpful guide to Medicare. It will give an overview of what to expect when starting this new health insurance plan.
Medicare Has Four Parts
The first is Part A, which covers hospital stays, skilled nursing facility services, hospice care, and some home health services. This part doesn’t have a monthly premium (if one has paid into Medicare taxes), but it does require deductibles and copayments. Part B, or medical insurance, covers doctor’s visits and outpatient care. This part has a premium that varies from year to year based on the country’s average growth in medical costs. Part C, sometimes called “Medicare Advantage,” is a plan one can choose if they want to combine their Medicare coverage with additional health benefits and/or prescription drug coverage (Part D).
Medicare Does Not Cover Everything
While Medicare can be a valuable resource for healthcare services, it does not cover every medical need that an individual may face in his or her lifetime. If one has other health insurance options, like an employer-sponsored health plan, that plan will take precedence over their Medicare coverage in most cases. Further, many supplemental plans are available that help fill in gaps where Medicare doesn’t fully cover care.
Medicare Is Not Free
Original Medicare plans have deductibles. Before getting coverage for any medical services through Part A or Part B, one will have to pay a deductible when they get sick. This is usually a few hundred dollars per year. If one doesn’t have enough savings to cover this deductible, they may want to consider getting a Medigap plan instead of the Original Medicare. It will provide supplemental insurance that helps pay out-of-pocket costs, like deductibles and copayments.
Consider the Cost of Living
The cost of living is another crucial factor to consider when thinking about Medicare enrollment. If one chooses not to enroll in Medicare at age 65, they will have a higher out-of-pocket expense if they choose to delay enrollment until later in life. This is because there will be an increase in the cost of health care over time due to inflationary pressures.
