People who are heading into retirement have a host of things to consider and grapple with. And one of the most daunting of these is likely to be their Medicare coverage. Figuring out which plan to pick and when to enroll can be extremely challenging, even for savvy retirees. That’s why we’ve put together a list of things one needs to know about Medicare.
Medicare Is Not Free
Original Medicare is made up of Parts A and B. Part A is usually free if one has paid Medicare payroll taxes for a minimum period of 10 years. People who aren’t eligible for free Part A coverage will need to pay a premium, which usually amounts to a few hundred dollars every month. Part B coverage comes at a price. Similarly, Part D of Medicare, which covers prescription drugs, has a monthly premium that will vary based on which variant of the plan is chosen. Apart from monthly premiums, people who opt for Medicare will need to pay deductibles, co-payments, etc.
Medigap Supplemental Plans Can Help Fill Medicare’s Coverage Gaps
Beneficiaries of Medicare should ideally opt for Medigap supplemental insurance, which is typically offered by private health insurance companies. This will help one pay for their out-of-pocket expenses. The good news is that beneficiaries can switch their Medigap plans whenever they want to.
Medicare Advantage Offers Comprehensive Coverage
People who are looking for an all-in-one plan could sign up for a Medicare Advantage plan instead. Medicare Advantage plans, unlike Original Medicare plans, are sold by private insurers. These plans often cover prescription drugs and offer coverage for vision, dental, and hearing services as well. Keep in mind that Medicare Advantage plans come at a cost, and beneficiaries will have to pay deductibles and co-pays.
People with High Incomes Pay More for Medicare Coverage
People whose incomes are above a certain threshold will need to pay a higher monthly premium for both Part B and Part D. This difference in premium is based on one’s adjusted gross income that was reported two years back.
