If your 65th birthday is coming up soon, you might be stressed thinking about retirement. You may also be confused about what decisions to make, so it’s important to know the first step to retirement: Understanding Medicare, and its options.
Created in 1965, Medicare is a federal health insurance program for those 65 and older. It was created to help seniors pay their medical expenses. In 2003, Medicare Part D was created to help people with Medicare pay for their prescription drugs.
Prior to turning 65, you may have health insurance through group plans offered by your employer or your spouse’s employer. However, when you turn 65, you will be eligible for one of the largest group health plans in the world.
Medicare can be used as your sole health insurance coverage or as companion or backup coverage to insurance you got through your employer, spouse, former employer or union. Let’s go over the different parts of Medicare for more understanding:
Medicare consists of Parts A,B, C, and D.
If you worked for more than 10 years, you’ll automatically be enrolled in Medicare Part A, a fee-for-service plan that covers emergency hospital stays. Part A is also referred to as Original or Traditional Medicare.
For a monthly premium, Medicare Part B will cover your routine doctor visits and preventive care.
And with Medicare Part D, purchased through a private carrier, you can save on your prescriptions. You can choose any combination of Part A, Part B, and Part D or you can purchase Medicare Part C through a private carrier.
Medicare Part C, or Medicare Advantage, works like the insurance you get through your employer providing the same coverage as Part A, Part B, and sometimes Part D for one monthly premium. It’s often less expensive and features more benefits than traditional Medicare.
Keep in mind that Medicare doesn’t cover all of your healthcare costs. Many services (such as routine dental and vision care) are not covered by Medicare. And unless you have additional insurance or qualify for low-income assistance, even with Medicare, you will be paying some premiums, deductibles and copays.
You may have a lot to ponder, but with a better understanding of your Medicare options, you can feel good about your decision and focus on a better life in retirement.
Related Links
How Social Security and Medicare Affect Your Retirement Income
Average Annual Medicare Bill in 2017: $7,620
5 Medicare Mistakes That Cost You Big Money
Can You Claim Social Security and Medicare at the Same Time?
The new Medicare Plus Card saves you up to 75% on things not covered by Medicare
Medicare doesn’t cover everything. Luckily, those on Medicare can now start saving on out of pocket expenses like prescription drugs, dental, vision, hearing, and more. Over 1 million people have already received their free Medicare Plus Card.
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