According to the most recent Consumer Expenditure Survey, healthcare is the third-largest expense for retirees. These costs will only rise further. Medicare, the most widely used insurance option for retirees, covers more than 62 million Americans. So it’s hard to argue that Medicare should not be considered an essential part of retirement planning.
Most people are probably familiar with Medicare and its various functions. However, The Harris Poll found that 77% of people over 50 want to know more about Medicare coverage. Simpler Horizons provide 101 medicare health solutions in Florida for all your medicare queries.
It is not hard to admit that Medicare can sometimes seem overwhelming and complex. However, there are common and costly mistakes you can avoid.
Let’s find out ways to avoid medicare mistakes.
1. Sign Up For Medicare Right Now
They say timing is everything. It is especially true if you want to enroll in Medicare. As soon as you turn 65, your IEP (initial enrollment phase) will require you to register for Medicare. The period is seven months long and covers the three months before your 65th birthday through the three following.
If you have not signed up for Medicare during your IEP, you can enroll again in Medicare’s annual general enrollment period. Each calendar year runs from January 1 to March 31. If you sign up, your coverage will not start until July.
Because you signed up too late, your monthly premiums for Medicare Part B (which covers doctor visits and outpatient services) will likely be higher.
Your coverage will start the following month if you enroll in the particular or initial enrollment period. However, if you sign up for Part B during the available enrollment, you will still be subjected to the late enrollment penalty.
2. Make Use Of The Enrollment Period.
You must enroll in Medicare if you are 65 or older. However, Medicare has a particular enrollment period (SEP) during which you can register without penalty.
Timing is everything. This SEP is only available for job-based coverage. It can also be used up to eight months after your job ends.
Also Read: A Guide For Medicare Enrollment
3. Register For Job Insurance When It Is The Second Line
Medicare is the primary insurance that you have. Your private, job-based insurance will not pay your medical bills unless Medicare has produced its share. Therefore, you should sign up for Medicare if your job-related insurance is your secondary coverage.
If your primary insurance is job-related, Medicare will be your secondary coverage.
For assistance, contact your benefits manager, human resource department, or 800-MEDICARE. It will help you determine whether your job-based coverage should be primary or secondary. Even after following these steps, if you have further queries to resolve, then Simpler Horizons medicare health solutions in Nevada also.
4. Learn more about Part B or Part C late enrollment penalties
For every year, if you put off enrolling in Part B, your monthly Part B premium may rise 10%. The penalty does not apply to those who have special enrollment or job-related periods.
For every year you put off signing up for a Part D policy, your monthly premium could rise by 1 percent. Part D plans cover prescription drug costs. Part D penalties will not be assessed if you can show Medicare that your drug coverage is the same as a Medicare Part D program.
5. Compare Original Medicare and Medicare Advantage Plans
When you apply for Medicare, you have two choices: You can either get your benefits through Original Medicare (or a Medicare Advantage plan). Your medical requirements, doctor’s acceptance, and travel habits will influence the type of Medicare coverage you choose.
Original Medicare is the traditional program offered by the federal government. It includes Part A, which pays for hospital costs, and Part B, which covers doctor’s appointments.
This insurance is used by the vast majority of doctors in the country. You can also purchase a Medigap insurance policy to cover out-of-pocket expenses.
The plan is subject to an annual cost. Original Medicare does not cover Part D. (prescription drugs coverage).
You’ll need to have an additional Part-D plan in case you don’t currently have coverage. Original Medicare doesn’t have any limits on annual costs.
Medicare Advantage (MA), a private option to Original Medicare, can be considered a type of private insurance. These plans provide Part A, Part D, and sometimes Part B benefits. These plans can also offer benefits not covered by Original Medicare, such as vision and dental care.
MA plans may also provide non-traditional services like transportation to medical appointments, wheelchair ramps, and meals delivered directly to beneficiaries’ homes. These plans may have different costs and rules than Original Medicare.
6. Obtain a Medigap policy
Medigap is a supplement insurance policy that can be used with Original Medicare. Medigap policies cover a portion of out-of-pocket expenses that Medicare doesn’t cover. It includes your Part A hospital coinsurance and 20% of the Part B deductible. Depending on your location, you can choose up to 10 Medigap policies.
Every policy has a unique name (e.g., Plan A) and different benefits. Although policies of the same name can provide the same benefits and may offer different premiums for you, they might not be the best.
7. Find out your out-of-pocket costs.
Although Medicare covers most medical expenses for its members, it is essential to understand that there can be significant out-of-pocket expenses. Here are the details:
- Premium: Each Medicare part might have a different monthly rate. Most people do not require the premium for Part A. It also covers hospital services. The Part B premium will be added to your monthly benefit if you are a Social Security recipient. It all depends on the plan you choose.
- Deductible: Before Medicare starts paying for your care, you may have to pay a deductible. Annual deductibles are required for Original Medicare Parts A and B. There are deductibles for some prescription drug plans in Part D and MA.
- A copayment is a payment you make for service. A copay is usually $25 when you visit a doctor or receive another medical service under MA Plans.
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