If you are like most people, healthcare is expected to be one of your biggest expenses in retirement, after the cost of housing and transportation. Since healthcare is one of the major expenses seniors have to face, your Medicare benefits and costs should be a key part of your retirement planning. It is vital to have a good understanding of the basics of Medicare, including benefits and costs.

So, the smartest thing to do is to factor in the coverage and cost of Medicare when planning for retirement and choose the most suitable plan for your needs. To ensure you make the right decision, here are some of the things you need to consider.

Medicare Coverage

Keep in mind that while Medicare offers coverage for many healthcare expenses, it doesn’t cover everything. For instance, Original Medicare doesn’t cover common healthcare expenses such as prescription drugs, dentures, hearing aids, and routine foot care. However, it is possible to add on a Medicare Supplement or a Medicare Advantage plan to get additional coverage. 

For prescription drug coverage, you can also add on Part D. 

You also have to be aware of the costs for Medicare. While most Medicare beneficiaries who have paid Medicare payroll taxes for at least ten years (40 quarters) are eligible for premium-free Medicare Part A, there are still copays and deductibles for hospital care. As for Medicare Part B, you will have to pay a monthly premium as well as a yearly deductible and copays when you visit the doctor.

How to Cover Costs

One approach that can help make your healthcare more affordable after retirement is to delay collecting your Social Security checks until after you reach full retirement age, as this can help increase the amount of your monthly Social Security check. The money you get from this check can help cover your Medicare premiums, supplemental insurance, or out-of-pocket costs.

If you opt for a Medicare Supplement plan, you can get coverage for costs that Original Medicare doesn’t cover. This doesn’t include your premium costs, but they can provide coverage for deductibles, copayments, coinsurance, excess charges, and more.

Original Medicare or Medicare Advantage

Another important decision you have to make when planning for Medicare during your retirement is to choose if you want to stick with Original Medicare (Medicare Part A and Part B) or add on even more coverage with a Medicare Advantage plan. Before making a decision, you’ll want to understand the difference between both plans.

Medicare Advantage is an alternative to Original Medicare. These plans cover every benefit offered by Medicare Part A and Part B, and some plans include additional benefits like hearing, dental, vision, and prescription drug coverage. Generally, when considering the right option, you may want to look at provider networks, compare costs, and consider extra benefits.

Not only this, but if you have Original Medicare and also have a Medicare Supplement plan, you won’t be able to enroll in Medicare Advantage. Medicare Supplements and Medicare Advantage plans simply do not work together. With this in mind, you should consider your Medicare options carefully.

Call Us Today

Wouldn’t it be great to be able to speak with someone who is an expert when it comes to Medicare for retirees? Well, you can! At Vic 4 Insurance, our experienced Medicare experts can help you navigate the Medicare insurance maze and plan for your retirement.