Understanding Medicare basics

Medicare is a cornerstone of just about every retirement plan, which is why it is important to understand some of the basics.  This article serves as a primer on the topic.  

Medicare is a federal health insurance program that provides coverage to individuals who are aged 65 and older, as well as those who have certain disabilities or chronic conditions.  Understanding the basics of Medicare is essential for anyone who is eligible for the program or will be eligible in the future.  in this article we will discuss the different parts of Medicare what they cover and how to enroll.

Medicare has four main parts: part A, Part B, part C, and Part D.  So, let's take a closer look at each of these parts.

Part A:  Medicare Part A is also known as hospital insurance.  It covers inpatient hospital stays, skilled nursing facility care, Hospice care and some home health care.  Most people do not have to pay a premium for Part A as long as they or their spouse paid Medicare taxes while working.

Part B:  Medicare Part B is also known as medical insurance.  It covers doctors’ services, outpatient care, medical supplies, and preventative services such as screenings and vaccines.  There is a monthly premium for Part B and the cost varies based on income.

Part C:  Medicare Part C is also known as Medicare Advantage.  It is an alternative to traditional Medicare and is offered by private insurance companies approved by Medicare.  Part C plans often include additional benefits, such as vision, dental, and prescription drug coverage.  These plans typically have their own set of costs which can vary based on the specific plan.

Part D:  Medicare Part D is prescription drug coverage.  It is offered by private insurance companies approved by Medicare.  Part D plans help cover the costs of prescription drugs and the cost varies based on the specific plan.  It is also important to consider enrolling in Medicare Part D, even if you don’t plan on using it right away as the price will increase annually if you delay enrollment.

Enrollment:  Most people are automatically enrolled in Medicare Part A when they turn 65 but they must enroll in Part B if they want coverage.  Individuals who are receiving Social Security benefits at least four months before turning 65 are automatically enrolled in both part A and Part B.  However, if you are not receiving Social Security benefits you must sign up for part A and Part B during your initial enrollment period which is typically three months before and after your 65th birthday.

Individuals can enroll in Medicare Part C and Part D during their initial enrollment period or during the annual enrollment. Which is between October 5th and December 7th each year.

To sum it all up, Medicare is a crucial health insurance program for millions of Americans.  Understanding the various parts of Medicare and how to enroll is essential for anyone who is eligible for the program.  By taking the time to learn about Medicare and your coverage options you can make informed decisions about your health care and ensure that you have the coverage you need.  At Tilli Wealth Management, we help our clients navigate their enrollment, whether it’s their first year of enrollment, or they’re assessing their coverage years ten years after initial enrollment.

Sources:

https://www.verywellhealth.com/medicare-4014366

https://www.uhc.com/news-articles/medicare-articles/how-to-get-dental-and-vision-care-coverage-when-you-have-medicare

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