Optimizing Medicare, just like optimizing your Social Security benefits is part of a smart retirement strategy! Should you replace an employer-provided health insurance plan with Medicare? When planning for retirement you need to understand the Medicare basics and seek the right help to get the right coverage. The choice you make will impact the premiums you pay, the care you receive, and the ability to choose providers.
When an American citizen turns 65 years of age, they have the option to enroll in Medicare Part A. Some delay enrollment into Parts B and D because they have group coverage and don’t want to pay the extra premium. If you don’t have qualifying coverage, waiting to enroll may have monetary consequences and penalties further down the line. The annual window for Medicare open enrollment is here — October 15th through December 7th. You have a limited chance to enroll or to make changes that take effect January 1st. If already enrolled, your coverage automatically renews unless you make changes. BUT don’t pass up the opportunity to review your plan because it could cost you in 2020!
During the annual fall enrollment period, you are able to:
• Switch to original Medicare from an Advantage Plan,
• Move from one Advantage Plan to another, and
• Move from one prescription drug plan to another.
Basic Medicare includes Parts A and B, and will cover most of your basic hospital, doctor, and outpatient care expenses. You can add a Part D prescription-drug plan at a separate cost. Due to the way the plans are structured though there are “gaps” in coverage. This is what Medicare Advantage Plans or Medicare Supplemental Insurance protects you against. A “Medi-gap” policy helps cover out-of-pocket expenses at an extra cost. Medicare does provide flexibility. You can go to any doctor or hospital in the United States that accepts Medicare, and you won’t need to get a referral to see a specialist or arrange prior authorization for services.
Of Medicare’s 60 million or so beneficiaries, 22.4 million are expected to be enrolled in Advantage Plans in 2020. Medicare Advantage plans are administered by private insurers, and generally offer the same Part A and Part B benefits that you get with traditional Medicare. Shop around because some include prescription drug coverage, and some also offer dental, vision and hearing care.
CONTACT US: TFGFA has independently contracted with multiple insurers, and can help you find a policy to match your benefit needs that is within your budget. There are plenty of choices on the market and Medicare Advantage plans that include additional benefits that go beyond dental and vision plans. There are new service options can target beneficiaries with more complex needs like home care, chronic disease management and transportation to the doctor. Even if your coverage worked well last year, another option may now be more suitable. Look beyond premiums and consider your total out-of-pocket spending, especially if a medical emergency should arise. Still have questions? We have answers. Proper planning and preparation can help you take control of your financial future.
Michael J. Bytnar, Certified Financial Planner, Retirement Income Certified Professional
Theodore G. Bytnar, Certified Financial Fiduciary, Licensed in Life and Health Insurance, Property and Casualty Insurance
Contact us via the links below, or call Mike Bytnar at 561-316-7687 or Ted Bytnar at 561-316-7725.
TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
