Finding the Right Plan
As a senior, healthcare will be one of your biggest expenses, so you must carefully consider this when budgeting and planning for retirement. With various medicare plans to choose from–each of which is priced differently–it becomes difficult to truly understand which one is right for you. Our financial advisors will walk you through what each plan means and help you determine which Medicare plan is most suitable for your unique needs.
Understanding The Basics Of Medicare
Although we will certainly take the time to understand what you’re looking to gain from your chosen Medicare plan, some background knowledge on how Medicare works is a great start when you’re getting ready to plan retirement.
Original Medicare consists of Part A and Part B; Part A is a hospital insurance that, if you qualify for, is premium-free. Part B, on the other hand, is the typical medical insurance you’re familiar with that requires paying a monthly premium. This premium varies due to a number of factors, but these will all be considered when you are choosing a plan.
Original Medicare covers surgeries and treatment for severe illnesses, as well as some preventative care. It does not, however, cover prescription medications, dental care, or vision care and requires you to pay out-of-pocket costs for deductibles, copayments, and coinsurance in addition to the monthly premium.
If you’re concerned about prescription medications, dental care, and vision care, or worry about the additional costs associated with Original Medicare, you may consider looking into supplemental insurance plans, as well as additional Medicare plans.
Medicare Supplement Insurance
Sometimes referred to as Medigap, Medicare Supplement Insurance is what it sounds like–it aids in covering–or supplements–some of those aforementioned out-of-pocket costs.
Because the elderly tend to need more medications, many prefer to opt for an insurance plan in addition to their Part A and/or Part B plan that offers coverage for prescription drugs.
Medicare Advantage plans also require a premium that will vary depending on your circumstances, but these types of plans may offer prescription drug coverage, routine (preventative) dental care, and general wellness coverage for your yearly physicals.
Medicare Part D
If all you want is Original Medicare (with or without Supplement Insurance) and drug coverage, then Medicare Part D may be a good option. Much like Medicare Advantage, Medicare Part D plans are offered by private insurance companies and will require you to spend some time shopping around.