Retirement planning discussions typically focus on investment strategies and portfolio longevity, but they tend to ignore one of the most critical aspects: healthcare expenses.
Healthcare is one of the greatest expenses on average for retirees, so having a coherent strategy to handle these needs can be helpful, even if your stocks aren’t doing well.
- Why Utilize Medicare?
Having the right healthcare coverage can be as important as having the right healthcare treatment. Medicare can help you pay for your healthcare costs and find economical alternatives. Without taking healthcare costs into account, you may be spending more than you need to for basic healthcare needs.
It’s crucial to remember that Medicare can significantly decrease the cost of healthcare if we want to stay healthy and fit for as long as possible. Taking care of our health as we age is a necessity, but we can still remain healthy and active.
Medicare open enrollment for 2022 is from October 15 through December 7. So, make sure you have a plan to factor Medicare into your retirement plan.[1]
Understanding how Medicare works and how you can get the most coverage for your unique needs at the lowest cost when you retire is vitally important. Many retirees wonder if they require all four parts of Medicare.
- What Are the Key Facts to Know About Medicare?
- Medicare often varies in cost based on which parts you enroll in. There are 4 parts you can enroll in: Part A, Part B, Part C, and Part D – each of which provides coverage for different types of healthcare[2].
- In general, Part A provides hospital and long-term care coverage.
- Part B provides coverage for necessary care such as doctor visits and preventative care services, as well as physician services and some drug prescription coverage.
- Part C is Medicare Advantage coverage sold by private insurance companies for what is not covered by part A or part B Medicare.
- And Part D is for prescription drug coverage.
- Open enrollment usually lasts roughly seven months and starts 3 months before the month of your sixty-fifth birthday.[3]
- Medigap insurance is provided by private insurance companies and can help pay for expenses not covered under Medicare. However, Medigap insurance is not allowed for those with a Medicare Advantage Plan.[4]
- Medicare often varies in cost based on which parts you enroll in. There are 4 parts you can enroll in: Part A, Part B, Part C, and Part D – each of which provides coverage for different types of healthcare[2].
How to Access Medicare
You do not have to take any action to sign up for Medicare; you will automatically be enrolled if you have a Social Security number. However, It is important to know how each Medicare component will function in your retirement plan.
Sign up for a complimentary review of your financial plan with us, and we can build a comprehensive retirement plan that factor in your healthcare costs and your Medicare situation.
[2] https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/parts-of-medicare
[3] https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/parts-of-medicare
[4] https://www.retireguide.com/medicare/
Disclosure:
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.
