If you’ve been wondering about health coverage in your retirement years, Medicare has likely crossed your mind. Medicare is a federal health insurance program for people who are 65 or older and people with certain disabilities or diseases. It is administered by the Centers for Medicare and Medicaid Services (CMS).
4 Parts to Medicare: Part A, Part B, Part C, and Part D.
- Part A, also known as hospital insurance, covers inpatient hospital stays, hospice care, and some home health care. Most people do not pay a premium for Part A coverage because they or a spouse paid Medicare taxes while working.
- Part B, also known as medical insurance, covers doctor visits, outpatient care, and preventive services. Most people pay a premium for Part B coverage. The cost of the premium is based on income.
- Part C, also known as Medicare Advantage, is an alternative way to receive your Medicare benefits. Instead of receiving benefits through Original Medicare, you can choose to receive your benefits through a private insurance plan that contracts with Medicare. Medicare Advantage plans typically include additional benefits such as vision, hearing, and dental coverage. Most people pay a premium for Part C coverage.
- Part D, also known as prescription drug coverage, helps cover the cost of prescription drugs. Most people pay a premium for Part D coverage. The cost of the premium varies depending on the plan you choose.
One of the most overlooked facts about Original Medicare (Parts A and B) is that when enrolled, you may have to pay deductibles and coinsurance for certain services—It’s not all free! Additionally, there are certain services that are not covered by Original Medicare, such as long-term care.
Medicare beneficiaries also have the option to purchase a Medigap policy, which is a private insurance policy that helps cover out-of-pocket costs under Original Medicare.
It’s important to note that Medicare coverage and costs can change every year and that it is important to review your options every year during the open enrollment period to ensure that you have the coverage that best suits your needs and budget.
Overall, it’s important to understand that Medicare is a federal health insurance program that provides coverage for people who are 65 or older and people with certain disabilities and diseases. It has four parts (A, B, C, and D) that cover different types of healthcare services. While Original Medicare has its limitations, additional coverage options such as Medigap and Medicare Advantage plans can help fill in the gaps.
If you have questions about Medicare or your healthcare coverage situation as part of your retirement plan, call us for a complimentary review of your finances to take the next step towards a secure retirement.
Because investor situations and objectives vary this information is not intended to indicate suitability or a recommendation for any individual investor.
This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.
Advisory services offered through Asset Strategy Advisors, LLC (ASA). Securities offered through representatives licensed with either Concorde Investment Services, LLC (CIS), member FINRA/SIPC, or RCX Capital Group, LLC (RCX), member FINRA. Insurance offered through Asset Strategy Financial Group, Inc. (ASFG). ASFG and ASA are independent of CIS and RCX.
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