One of the largest bills you’ll ever have in your lifetime is your healthcare. And, once you turn 65, Medicare becomes a major player in your healthcare.
We get questions all the time about Medicare:
What will it cover? What is available?
What are deductibles? What are co-pays?
How do I qualify for it? How do I choose the right plan for me?
The task of choosing the right plan can seem overwhelming. One of the things you can do to help streamline the process is to make sure you meet with a qualified Medicare professional. Eugene here in our office has been helping people with this aspect of their lives for many, many years. As you’re approach age 65, we recommend you meet with someone who is experienced in this area, who can help you understand all your options. After age 65, we recommend you meet with someone annually to review your plan, and make sure it is still the best option for you.
Remember that Medicare supplements are not income dependent. No matter what your income level is, we recommend you take a look at Medicare supplements. That’s because, contrary to popular belief, Medicare doesn’t pay all of your medical bills. Medicare deductibles are over $1200 this year. And, typically, Medicare will pay only up to 80% of your bills, leaving 20% for you to pay. If you had a hospital visit, for example, that could leave you with a bill for thousands of dollars even after Medicare pays their 80%. However, you can elect to have a Medicare supplement plan to help pay for those additional expenses.
Having a supplement policy that you pay for above your Medicare, for most people, is critical to their long range plan.
Also, you need a drug plan. If I take out this supplement plan, what else does it pay? All plans are set up according to government regulations. You have to pick out ABCD or F and it is based on what you want to pay. Most people do F plans because it covers close to 100% of their expenses.
What To Do When Your Choices Feel Overwhelming
Typically, we recommend the F plan because that covers 100% of the extra charges above your Medicare. If you take Medicare A, you’re taking more risk…It’s not a drastic amount of difference in the premium but there is some.
All F plans will pay the same, no matter what company you’re with. The price differs based upon which company you take it out with.
Although we have a few main companies we use, we can shop it for you.
It is most cost effective and to your advantage to take out this policy as soon as you turn 65. No matter what your health is when you turn 65, these insurance companies HAVE TO (within 3 months each side of their 65th birthday) give you coverage.
However, if you wait until you are 70, for example, and want to change coverage, the insurance company doesn’t HAVE to cover you or even accept you. You could even wind up paying a penalty for waiting. Bottom line is this: be sure to speak to an expert in Medicare coverage sooner rather than later.