Medicare Planning

Medicare and Retirement Health Strategy

While there is no shortage of things to prepare for in retirement, it’s also important to address your health needs and concerns by crafting a comprehensive health care strategy. There are various ways to accomplish this, with Medicare being the most important for many Americans.

Medicare generally provides health insurance for most people aged 65 and older, those who have received Social Security disability benefits for at least 24 months, and those with end-stage renal disease or amyotrophic lateral sclerosis (also known as Lou Gehrig’s disease). Medicare is similar to Social Security, since it is a federal program that you have paid into throughout your career. Just like Social Security, you want to optimize this benefit in retirement.

Medicare is split into four parts:

• Part A: Hospital Insurance – covers the costs of health care at medical facilities. Offers coverage for medically necessary inpatient care at hospitals, skilled nursing facilities, hospices and some home health services.
• Part B: Medical Insurance – covers the costs of health care outside medical facilities. Offers coverage for doctors’ services, hospital outpatient care, mental health and some preventative health care services.
• Part C: Medicare Advantage (MA) plans – policies you can purchase from certain private insurance carriers that provide the same (or more) coverage as Parts A and B.
• Part D: Prescription drug coverage offered through private Medicare-approved insurance companies.

Many people with Part A do not pay a premium because they have already paid enough into the system. As with Social Security, a certain portion from each one of your paychecks is deducted to pay for Medicare. When you’ve had Medicare tax withheld from you or your spouse’s pay for at least 40 calendar quarters, then you may be eligible for free Part A coverage.

The monthly premium associated with Part B is set according to income level, although most people will pay a standard monthly premium amount and a small yearly deductible. Individuals and couples who have a Modified Adjusted Gross Income (MAGI) that exceed certain income levels which change annually, could have an increase in Part B and Part D premiums due to the income related monthly adjustment amount (IRMAA). Parts C and D are provided via private insurance companies so the monthly premiums of these policies depend on the extent of their coverage and can vary between companies.

Disclosure: We are not affiliated with, or endorsed by, the Social Security Administration or any other government agency.

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

Source: https://www.medicare.gov/your-medicare-costs