How to compare Medicare plans and decide what is right for you
When you are approaching retirement, you have a lot to think about. You need to look at your savings and see if you’re on track for meeting your goals. You need to determine when you want to start withdrawing from Social Security. And, you need to look into enrolling in Medicare.
Once you have reached the age of 65, you qualify for Medicare benefits. People with certain disabilities may qualify for Medicare coverage at a younger age. Take a look at this document from the Social Security Administration to discover if you are eligible for early Medicare coverage.
Comparing Medicare plans
Medicare is available in four different parts, each detailing a different level of coverage you may select if you qualify:
- Part A — Medicare Part A is what most people apply for when they turn 65. This helps cover your inpatient care in a hospital or nursing facility. It also covers some home health care and hospice care.
Most people 65 years old or older qualify for free Medicare Part A if they have been paying Medicare taxes for long enough. If you are 65 or older, or turning 65 within three months, you can begin applying for Medicare Part A online or in a Social Security office.
- Part B — Medicare Part B helps cover outpatient services, home health services and other medical services not covered under Part A. Anyone who is eligible for Part A can also enroll for Part B but must pay a monthly premium for it. The monthly premium may increase for some beneficiaries with a high income.
- Part C — Also known as Medicare Advantage, Medicare Part C covers everything Parts A and B cover as well as some additional benefits. This plan is managed by private insurance companies that partner with Medicare to cover options such as prescription drugs, routine dental care, vision care, hearing care and fitness classes.
- Part D — Medicare Part D helps cover your medication needs. To opt for Medicare Part D, you pay a monthly premium to your insurance provider, which will use its network to purchase your prescription medications. Under this plan, you pay only a copay for your medications.
If you are approaching retirement soon, you should take a look at each of these plans and decide what is going to be best for you. If you need help factoring your Medicare plan into your retirement plan, you can always talk to a financial advisor for assistance.
Talk to a ProVise CFP® professional about preparing for your retirement
Financial preparation for your retirement is no small task. You have been saving for years, and now the time is almost here. However, before jumping into the deep end of the retirement pool, you should talk to a financial advisor about reviewing your plan and factoring in Medicare and other expenses or supplemental income.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about your retirement planning? Contact ProVise today to schedule a complimentary consultation.